Synopsis : ITC's non-cigarette FMCG business achieved a major milestone in FY26, with annual consumer spending on its products crossing Rs 37,000 crore. The company strengthened its portfolio through organic growth, strategic acquisitions and continuous product innovation, while reporting double-digit growth in both revenue and profit. Despite maintaining a positive outlook, ITC has also cautioned about inflationary risks arising from geopolitical tensions and the possible impact of El Niño on India's economy.
Consumers spent over Rs 37,000 crore on ITC's non-cigarette fast-moving consumer goods (FMCG) products during FY26, according to the company's latest annual report. The milestone highlights the company's growing presence in India's consumer goods market as it continues to expand its portfolio beyond its traditional cigarette business.
ITC said its portfolio now consists of more than 30 Indian brands that have largely been built through organic growth while leveraging the company's strengths in sourcing, manufacturing, distribution and innovation. These brands now reach nearly 280 million households across India, reflecting the company's strong nationwide presence.
The achievement also marks a significant improvement from the previous financial year, when ITC's FMCG portfolio of 25 brands generated annual consumer spending of around Rs 34,000 crore. Consumer spending represents the total value of purchases made by consumers, including taxes and retail margins, indicating the strong market acceptance of ITC's products.
The company continues to focus on strengthening its existing brands while expanding into adjacent product categories. Its long-term strategy revolves around building a future-ready product portfolio supported by continuous innovation, purpose-driven brands, an efficient supply chain, omni-channel distribution and strategic mergers and acquisitions.
During FY26, ITC's non-cigarette FMCG business, which includes packaged foods, personal care products, stationery, incense sticks and safety matches, reported revenue of Rs 24,209.75 crore, registering a healthy year-on-year growth of 10.1 per cent.
The segment's profitability also improved significantly. Segment profit increased 14.1 per cent to Rs 1,802.63 crore, driven by higher operating efficiencies, better product mix, disciplined cost management and benefits arising from scale expansion. The performance demonstrates the company's continued focus on improving margins while expanding its consumer business.
Over the past few years, ITC has also strengthened its FMCG portfolio through targeted acquisitions in fast-growing and premium product categories. These include Sresta Natural Bioproducts, known for 24 Mantra Organic, Sproutlife Foods which owns Yoga Bar, Mother Sparsh Baby Care, and Ample Foods, the parent company of Prasuma and Meatigo.
According to the company, these acquired businesses delivered robust growth during FY26 and together have already reached an annual revenue run rate of more than Rs 1,350 crore. ITC believes these acquisitions will further strengthen its position in high-growth segments such as organic foods, nutrition, baby care and premium packaged foods.
The company also highlighted that India's domestic economy remained resilient during FY26, particularly in the second half of the year. Stronger private consumption, improving rural and urban demand, income tax relief, GST rationalisation and supportive monetary policies all contributed to healthier consumer spending across the country.
However, ITC cautioned that global developments continue to pose risks. Rising geopolitical tensions in West Asia have increased concerns around energy security and imported inflation, while the possible emergence of El Niño could lead to weaker monsoons, heatwaves and higher food inflation. These factors could affect consumer demand, economic growth and overall market sentiment in the coming months.
Despite these challenges, ITC remains optimistic about the long-term growth potential of India's FMCG sector. With a diversified product portfolio, expanding distribution network, continuous product innovation and strategic acquisitions, the company is well-positioned to capture rising consumer demand and strengthen its leadership across multiple fast-growing categories.
Disclaimer : This content is for informational and educational purposes only. Investors and readers should conduct their own research and consult professional financial advisors before making any investment decisions.
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