India's ITC posts uptick in adjusted profit on higher tax-led price hikes (updated)

ITC

21/05/2026 11:38

Corrects paragraph 2 to say profit rose 4.3%, not 2%

May 21 (Reuters) - Indian consumer goods major ITC ITC.NS posted a marginal rise in quarterly profit before exceptional items and tax on Thursday as price increases in its core cigarettes business cushioned the impact of higher taxes on the segment.

The company, which makes Gold Flake cigarettes, reported profit rose 4.3% to 66.92 billion rupees ($695.63 million) in the March quarter.

The company had recorded a one-time gain of 151.79 billion rupees in the year-ago quarter following the demerger of its hotels business.

     ITC implemented price increases across its cigarette brands following the government's excise duty hike that came in effect in February, though the increases were calibrated to protect volumes.

However, analysts at Goldman Sachs said the price hikes of 20%-40% across key cigarette brands were lower than what would be required to fully offset the tax increase, implying some near-term pressure on margins.

Revenue in the cigarettes business, which accounts for the bulk of the company's profits, rose about 32% to 110.66 billion rupees. Revenue from the company's consumer goods segment, which houses brands such as Aashirvaad, Sunfeast and Bingo, rose 15% to 63.04 billion rupees.

Overall revenue climbed 17% to 216.95 billion rupees.

($1 = 96.2000 Indian rupees)

 (Reporting by Surbhi Misra and Devika Nair in Bengaluru; Editing by Janane Venkatraman)

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