Synopsis : ITC Chairman Sanjiv Puri has announced a ?20,000 crore investment plan to scale manufacturing across sectors under the ‘Bharat First’ strategy. While Q1 profit dipped slightly, revenue grew 7.5%, with 65% of ITC’s revenue now coming from non-cigarette businesses.
ITC Ltd plans to invest ?20,000 crore over the medium term to expand its manufacturing capacity across multiple sectors, Chairman Sanjiv Puri announced at the company’s AGM 2025. Reinforcing ITC’s ‘Bharat First’ strategy, Puri emphasised that the focus will remain on strengthening its domestic footprint before venturing further into global markets, with value creation through new brand launches at the core of its expansion plan.
Despite macroeconomic headwinds, ITC reported a resilient performance for Q1 FY26, with consolidated revenue rising 7.5% to ?20,029.60 crore, even as net profit dipped marginally by 0.26% to ?5,091.59 crore, falling short of analyst estimates. Puri highlighted that 65% of ITC’s revenue now comes from non-cigarette businesses, showcasing the company's strategic pivot toward a diversified portfolio.
The cigarettes business, however, remains strong, with a 5.8% revenue growth to ?8,842.22 crore and a 6.29% increase in pre-tax profit, supported by tax stability and efforts against illicit trade. The non-cigarette FMCG segment saw revenue rise 6.3% to ?5,498.80 crore, with personal care and packaged food driving growth and pre-tax profit surging 10.4% year-on-year.
ITC’s hospitality segment grew 14.29% in revenue to ?713.3 crore, although profits dipped 9% due to operational impacts from the launch of ITC Ratnadipa in Colombo. The quarter also marked ITC’s entry into international hospitality with the Fortune Resort in Bhaktapur, Nepal.
The paperboards and packaging segment faced pricing pressures, with revenue declining 6.78% to ?1,976.85 crore and pre-tax profit plunging 45.6% due to high domestic wood costs and competition from low-cost imports. Meanwhile, the agri-business delivered strong revenue growth of 22.19% to ?6,997.89 crore, though pre-tax profit slipped 2.2% due to cost inflation and depreciation from a new nicotine derivatives facility.
ITC’s massive investment plan signals confidence in India’s growth trajectory, reflecting its readiness to double down on manufacturing and non-cigarette businesses while navigating challenges in global and domestic markets.
Disclaimer : This article is for informational purposes only and does not constitute investment or financial advice.
