ITC

Recent News & Developments

GST Council Meeting and Taxation: The ongoing GST Council meeting is a major focal point for investors. Analysts, including those from Jefferies, believe the government's intention is to maintain "revenue neutrality" for the tobacco industry, which could provide relief and clarity on the tax burden. A stable taxation policy would help curb illicit cigarette trade and support steady volume growth. Strategic Acquisitions: ITC continues to execute its "ITC Next" strategy with recent acquisitions aimed at strengthening its FMCG portfolio: Pulp and Paper Business: ITC has sought approval to acquire the pulp and paper business of Aditya Birla Real Estate Ltd. for ₹3,498 crore. This is a strategic move to expand capacity in a key business segment. Organic & Wellness Brands: In the past year, ITC completed the acquisition of Sresta Natural Bioproducts, which owns the "24 Mantra Organic" brand. The company is also in the process of acquiring the remaining stake in Mother Sparsh Baby Care, a digital-first brand. These acquisitions highlight the company's focus on the high-growth, health-conscious consumer segment. Q1 FY26 Financial Results: ITC reported a resilient performance for the first quarter of FY26. Revenue: Consolidated revenue from operations grew by approximately 20% year-on-year to ₹23,129.35 crore. Profit After Tax (PAT): Consolidated PAT saw a marginal increase of around 3% to ₹5,244.20 crore. The profit growth was slower than revenue, primarily due to rising commodity prices and cheap paper imports impacting margins in the FMCG and paper segments.