ITC Q1 profit falls 27% as cigarette tax hike dents premium demand
ITC reported Q1 profit of Rs 35.79 billion, down from Rs 49.11 billion a year earlier. Revenue rose to Rs 269.43 billion, but expenses climbed sharply as cigarette tax-led price increases softened demand for premium brands.
ITC’s Q1 profit fell 27% as fresh cigarette tax hikes raised costs and price increases softened demand for premium cigarette brands. Revenue grew, but total expenses surged; ITC’s FMCG portfolio includes Aashirvaad and Bingo.
Why this matters
ITC's latest Q1 result extends a mixed earnings pattern: prior signals showed Q1FY27 revenue up 28% alongside a 16% net-profit fall, and flagged ITC for Q1 FY27 earnings scrutiny with Swiggy and Raymond Lifestyle.
The retail-company theme is accelerating, up 259860% QoQ.