ITC Q4 Results: Cigarettes Hold Strong, But FMCG Business Hits a Rough Patch

ITC just shared how it did in the last quarter (January to March 2025), and the results are a bit of a mixed bag. The company is still making good money from cigarettes, but its other products — the things you find in your kitchen or bathroom like atta, biscuits, soaps, and shampoos — didn’t perform as well.

Cigarettes Still Doing Well

Cigarettes continue to be ITC’s cash cow. People are still buying them steadily, and the company actually made more money from cigarettes this time compared to last year — about 7.7% more, to be exact.

Why? Simple things, really. People are out and about more now, and that means more cigarette sales. ITC also has a strong grip on the cigarette market in India.

But it’s not without its challenges. With high taxes and health warnings constantly hanging over the industry, there’s always a bit of worry about how long this steady run can last.

FMCG Products Struggle — What’s Going On?

Now here’s where ITC hit a rough patch. You know the Aashirvaad atta you use, or the Sunfeast biscuits your kids love? That side of the business didn’t do so well this time.

Profits in the FMCG (fast-moving consumer goods) segment went down by nearly 5%. That might not sound like a huge number, but for a company of ITC’s size, it’s noticeable.

So what happened? People in smaller towns and villages — where ITC sells a lot of its products — aren’t spending as much. There’s also tough competition from local brands offering similar items at cheaper prices. Basically, ITC had a harder time convincing people to pick their products over more affordable options.

To deal with this, ITC tried launching some premium products and kept a tight check on costs. That helped a little, but not enough to completely turn things around.

Agriculture and Paper Segments Also Feel the Pinch

ITC doesn’t just make cigarettes and consumer products — it’s also involved in agriculture and packaging materials. And unfortunately, these areas didn’t do too well either.

The agri business saw a big 13% drop in revenue. That’s mostly because the government placed some restrictions on food exports, which made it harder for ITC to sell certain items outside India.

Then there’s the paper and packaging side of things. Revenue there also slipped, by about 7%, thanks to rising costs and cheaper imported materials from other countries.

What’s Next for ITC?

Even with these challenges, ITC is staying optimistic. The company is hoping things will pick up, especially if we get a good monsoon this year and inflation stays under control. More spending in rural areas could really help its FMCG products make a comeback.

For now, ITC says it will keep focusing on launching new and better products, managing costs smartly, and maybe even buying up some smaller brands to strengthen its place in the market.

So overall, it’s a “some good, some not-so-good” kind of quarter for ITC. Cigarettes are still bringing in strong revenue, but the company will need to work harder to get its food and personal care products back on track.