ITC Q1 profit drops 27% as cigarette tax hikes squeeze margins
ITC reported quarterly profit of ₹3,579 crore for the quarter ended June 30, down from ₹4,911 crore a year earlier. Revenue rose to ₹26,943 crore, but expenses climbed sharply to ₹22,829 crore as tobacco-tax pressure and premium-cigarette demand weighed on earnings.
ITC’s quarterly profit fell 27% as fresh cigarette tax hikes squeezed margins and price increases hurt demand for premium brands. Revenue rose, but expenses jumped sharply, highlighting pressure on the consumer goods major’s tobacco business.
Why this matters
ITC's latest Q1 result extends recent earnings-pressure signals: one cited a 27% profit fall from cigarette tax hikes and weaker premium demand, while others reported revenue growth alongside 16% profit declines.
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