ITC Earnings Summary — Q4 FY2026
ITC Reports Solid Q4 Earnings with Significant Margin Expansion to 39%
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 7.2% sequentially in Q1 FY2027.
- Revenue of ₹19,114 Cr is 11.1% lower year-on-year.
- Revenue has compounded at 5.2% annualised over the last 10 quarters.
- Net profit of ₹4,394 Cr is 16.2% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -6.6% annualised across the period.
- Operating margin stands at 27.1% in Q1 FY2027.
- Operating margin compressed by 461 bps year-on-year.
- Over the last two years operating margin has contracted by 971 bps.
- PBT margin is 30.7%.
- Expenses grew -5.1% against revenue growth of -11.1%.
- Operating profit of ₹5,181 Cr is 24.0% lower year-on-year.
- Operating leverage has been under pressure recently.
- 3 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 39/100 (Weak) on the latest 10 quarters.
- Business momentum has softened and warrants monitoring.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 19,114 | 17,825 | 20,047 | 19,502 | 21,495 | 18,765 | 18,790 | 19,990 | 17,778 | 17,038 |
| Expenses | Improving | 13,934 | 10,900 | 13,165 | 12,807 | 14,678 | 12,246 | 12,428 | 13,438 | 11,233 | 10,736 |
| Operating Profit | Stable | 5,181 | 6,924 | 6,883 | 6,695 | 6,816 | 6,519 | 6,362 | 6,552 | 6,545 | 6,302 |
| Operating Margin | Stable | 27.1% | 38.9% | 34.3% | 34.3% | 31.7% | 34.7% | 33.9% | 32.8% | 36.8% | 37.0% |
| Other Income | Volatile | 1,148 | 700 | 322 | 739 | 751 | 15,391 | 803 | 690 | 771 | 868 |
| Interest | Accelerating | 40 | 29 | 19 | 20 | 16 | 11 | 10 | 15 | 10 | 11 |
| Depreciation | Stable | 428 | 422 | 431 | 435 | 423 | 411 | 416 | 416 | 403 | 385 |
| Profit Before Tax | Volatile | 5,861 | 7,173 | 6,754 | 6,979 | 7,128 | 21,489 | 6,740 | 6,811 | 6,903 | 6,774 |
| Tax | Stable | 1,352 | 1,703 | 1,736 | 1,792 | 1,785 | 1,681 | 1,726 | 1,757 | 1,726 | 1,584 |
| Net Profit | Volatile | 4,394 | 5,388 | 4,931 | 5,126 | 5,244 | 19,727 | 4,935 | 4,993 | 5,092 | 5,121 |
| Net Margin | Volatile | 23.0% | 30.2% | 24.6% | 26.3% | 24.4% | 105.1% | 26.3% | 25.0% | 28.6% | 30.1% |
Key Takeaways
- Operating Profit Margin (OPM) reached a multi-quarter high of 39% in Q4 FY26, rebounding from lower levels earlier in the year.
- The quarterly Net Profit of ₹5,470 Crore represents a significant sequential improvement (9%) and a modest year-on-year growth.
- Revenue witnessed a sharp sequential decline of 11% compared to Dec 2025, suggesting a seasonal cooling in sales volumes.
- Borrowings spiked significantly to ₹2,399 Crore by March 2026 compared to ₹303 Crore in March 2024, altering the debt profile slightly.
- The 'ITC Next' strategy continues to drive FMCG profitability, transitioning the segment from a margin drag to a healthy contributor.
- Despite steady profit generation, long-term stock performance continues to lag behind fundamental earnings growth.
- Other income remains a volatile but crucial component of pre-tax profit, stabilizing back to ₹700 Crore this quarter after the FY25 anomaly.
Management Guidance
Management is focused on the 'ITC Next' strategy with a clear emphasis on digital transformation through ITCMAARS and premiumization of the FMCG portfolio. There is a strong vision toward market leadership in core categories and expanding digital reach to over 3 million retail outlets by FY26.
Sentiment Shift
Improving
While top-line growth is moderate, the sharp recovery in operating margins to 39% and consistent profit compounding indicate efficient cost management and pricing power.
Outlook
The outlook remains healthy driven by the de-risking of the business model from cigarettes and the potential unlocking of value through the Hotels business demerger. High ROCE and a fortress balance sheet support future capital allocation towards growth segments.
From the Annual Report (Key Quotes)
“ITC is India's pre-eminent cigarette manufacturer, transitioning into a diversified FMCG powerhouse.”
“The company has maintained a fortress-like balance sheet while shifting its capital allocation towards 'FMCG Others'.”
“Management is characterized by high institutional stability and a focus on long-term value creation.”
Official Quarterly Documents
This summary is AI-generated from ITC's latest quarterly filing and earnings call. For informational purposes only — not investment advice.