FMCG-Others was the standout engine in FY26: Q4 revenue rose 15% YoY, segment results surged 51% YoY, and EBITDA margin expanded ~200 bps to 11% ex-Sresta.
The digital-first and organic portfolio — Yogabar, 24 Mantra/Sresta, Mother Sparsh, Prasuma and Meatigo — grew ~60% YoY and crossed an ARR of ₹1,350 crore, roughly 6× the legacy FMCG core pace.
Distribution is amplifying the flywheel: UNNATI now covers 8 lakh+ outlets, while digitally enabled sales plus Modern Trade account for 34% of key FMCG category sales.
ITC's cigarette business entered FY26 in strong form — Net Segment Revenue up 8.2% YoY and Segment Results up 5.1% YoY, driven by volume-led growth and premiumisation across Classic, Gold Flake, American Club and Players. That trajectory held firmly until January 2026.
On 1 February 2026, GST on cigarettes was restructured from 28% of transaction value to 40% of retail sale price, paired with a steep excise duty hike triggered by the phasing out of the GST Compensation Cess. The combined impact represents an unprecedented increase in tax incidence, concentrated entirely in the final two months of the fiscal year. Gross Revenue and Excise Duty figures for Q4 and full-year FY26 are not strictly comparable with prior-year numbers.
ITC's response: staggered, agile pricing actions to minimise volume migration to illicit trade, plus a broad re-architecture of the product portfolio — while actively engaging policymakers for 'equitable, evidence-based taxation'.
The structural risk is already measurable. India is the 4th largest illicit cigarette market globally (Euromonitor). Illicit trade costs the Exchequer approximately ₹23,000 crore annually — roughly one-third of the entire legal industry's scale. Punitive taxation risks accelerating exactly the shift it was designed to avoid.
ITC's Agri Business entered FY26 carrying a high base — a 2-year CAGR of 13% — only to find the external environment conspiring against it. Full-year segment revenue grew just 3% YoY. The West Asia conflict deferred export call-offs, US tariff measures (including a 50% tariff on Brazilian coffee imports) squeezed margins, and domestic stock limits further curtailed volumes.
A partial offset came from ITC IndiVision's Nicotine & derivatives facility in Mysuru, now being rapidly scaled up for export. The VAAP portfolio grew 1.4× over two years and organic spice volumes more than doubled.
The Paper segment's story runs in the opposite direction. On 22 August 2025, the government imposed a Minimum Import Price on Virgin Multi-layer Paperboard — triggering a progressive decline in cheap Chinese/Indonesian imports. Q4 profits rose 21% YoY and 24% QoQ. Wood price moderation provided an additional tailwind, while Specialty Papers (Décor) and the Cartons portfolio delivered strong growth.
The Company delivered a resilient performance amidst a challenging macroeconomic and operating environment.
— ITC Limited FY26 Press Release, May 21, 2026