ITC Q3 FY25 Results: Consolidated PAT Declines 7% YoY to ₹4,935 Crore, Revenue Growth at 8%
ITC Ltd: Overview
ITC Ltd. is one of India’s leading conglomerates with a diversified presence across multiple industries, including fast-moving consumer goods (FMCG), hotels, paperboards and packaging, agri-business, and information technology. Established in 1910, ITC has grown into a market leader in several sectors, driven by its strong brand portfolio, innovative products, and sustainability initiatives. The company’s core strengths lie in its deep distribution network, robust supply chain, and extensive research and development capabilities, enabling it to cater to evolving consumer preferences effectively. The FMCG segment, which includes foods, personal care, and education stationery, has been a major growth driver for ITC, contributing significantly to its revenues. ITC has been focused on sustainability and environmental responsibility, with initiatives such as carbon-positive and water-positive operations. The company’s investments in green businesses, renewable energy, and circular economy practices underscore its commitment to responsible growth. The Indian FMCG sector is expected to grow at a CAGR of 10-12%, driven by the increasing preference for packaged foods, health-conscious products, and digital shopping channels. ITC’s strong distribution network and expanding product portfolio position it well to capture this growth. ITC continues to hold a dominant position with a market share of over 75%. Growth in premium segments and the company’s pricing power support revenue stability. The Indian agricultural sector continues to expand, supported by government reforms and increasing food exports.
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During the quarter, ITC experienced a sharp escalation in the costs of key input materials such as edible oil, wheat, potato, leaf tobacco, and wood, impacting overall margins. Despite these cost pressures, the company maintained its growth trajectory and continued to focus on value creation. The Board has recommended an Interim Dividend of ₹6.50 per share for the financial year ending March 31, 2025, reflecting its commitment to shareholder returns. The Cigarettes segment performed well, with net segment revenue rising by 8.1% YoY and segment PBIT increasing by 4.1% YoY. However, competitive intensity remains high, particularly in categories like noodles, snacks, biscuits, and popular soaps, where local players continue to exert pressure. The macroeconomic environment presents challenges, with India’s real GDP growth estimated at 6.4% for FY25, down from 8.2% in FY24. A broad-based slowdown in manufacturing and a deceleration in investment growth have contributed to this moderation. In a strategic move, ITC completed the demerger of its Hotels Business, transferring operations to ITC Hotels Limited (ITCHL), which became effective on January 1, 2025. ITC Hotels Limited was successfully listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on January 29, 2025, and is now reported as ‘Discontinued Operations’ in the financial results for the quarter and nine months ended December 31, 2024. Despite industry challenges, ITC continues to leverage its strong customer relationships and agile execution capabilities to drive growth in Leaf Tobacco and Value-Added Agri Exports, ensuring a robust presence in key markets. The company remains focused on sustaining its leadership across core business segments while adapting to evolving market dynamics.
Business Segments
- FMCG: ITC is the undisputed leader in the Indian cigarette industry, with a diverse portfolio of brands catering to different consumer segments. The cigarette business remains highly profitable and is a major contributor to ITC’s bottom line. Apart from cigarettes, ITC has built a strong presence in non-cigarette FMCG categories, such as packaged foods, personal care and hygiene products. The FMCG segment has been growing rapidly, with the company expanding into newer categories like dairy, frozen snacks, and beverages.
- Hotels: ITC Hotels is one of India’s largest luxury hotel chains, with a presence in premium and mid-market segments. The company operates properties under brands like ITC Hotels, WelcomeHotels, Fortune, and Storii. ITC Hotels is known for its sustainable luxury approach, with several properties achieving LEED Platinum certification. The hospitality business has been recovering strongly, driven by increased travel demand and the expansion of leisure and business tourism.
- Paperboards, Paper & Packaging: ITC is a market leader in premium paperboards and sustainable packaging solutions. The segment caters to various industries, including FMCG, pharmaceuticals, and e-commerce. ITC’s investments in high-quality, eco-friendly paper products have positioned it well in the growing demand for sustainable packaging.
- Agri-Business: ITC’s agri-business division is a key player in the Indian agricultural sector, dealing in wheat, rice, spices, and other commodities. The company’s e-Choupal initiative, a digital agri-platform, has revolutionized supply chain efficiencies and improved farmer livelihoods. ITC continues to strengthen its farm-to-fork capabilities, ensuring high-quality sourcing for its FMCG businesses.
- IT & Digital Services (ITC Infotech): ITC Infotech is a global IT services and solutions provider catering to industries such as manufacturing, retail, and financial services. The subsidiary specializes in digital transformation, AI, cloud computing, and analytics. ITC Infotech has been expanding its global footprint through strategic acquisitions and partnerships, contributing to the overall growth of ITC Ltd.
Subsidiary Information
- ITC Infotech: ITC Infotech is a wholly-owned subsidiary that provides IT solutions and consulting services. It caters to global clients across industries such as BFSI, retail, healthcare, and manufacturing. The subsidiary has been focusing on expanding its capabilities in AI, automation, and cybersecurity, strengthening its position as a digital transformation partner for enterprises.
- Surya Nepal Pvt Ltd: A joint venture between ITC and Nepalese partners, Surya Nepal is the largest cigarette manufacturer in Nepal. Apart from cigarettes, the company has diversified into apparel and lifestyle products under the John Players brand. Surya Nepal contributes significantly to ITC’s international revenue streams.
- Technico Agri Sciences Ltd: This subsidiary focuses on agribiotechnology, specializing in high-yield seed varieties and improving agricultural productivity. Technico Agri Sciences plays a crucial role in ITC’s agri-business operations by enhancing crop quality and farm output, benefiting both farmers and ITC’s FMCG segment.
- WelcomHotels Lanka Pvt Ltd: ITC’s international expansion in the hospitality segment includes WelcomHotels Lanka, a subsidiary overseeing the development of a luxury hotel and mixed-use property in Sri Lanka. This venture aligns with ITC’s strategy of expanding its footprint in high-growth tourism markets.
- North East Nutrients Pvt Ltd: This subsidiary focuses on manufacturing and distributing food products, particularly under the Aashirvaad brand. It plays a critical role in ITC’s packaged foods supply chain, ensuring consistent quality and production efficiency.
Q3 FY25 Earnings
- Revenue of ₹18790 crore in Q3 FY25 up by 9.3% YoY from ₹17195 crore in Q3 FY24.
- EBITDA of ₹6362 crore in this quarter at a margin of 34% compared to 36% in Q3 FY24.
- Profit of ₹5013 crore in this quarter compared to a ₹5407 crore profit in Q3 FY24.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 17195 | 18790 | 70919 | 70866 |
| Expenses | 10985 | 12428 | 45215 | 44634 |
| EBITDA | 6210 | 6362 | 25704 | 26233 |
| OPM | 36% | 34% | 36% | 37% |
| Other Income | 820 | 803 | 2098 | 2804 |
| Net Profit | 5407 | 5013 | 19477 | 20751 |
| NPM | 31.4% | 26.7% | 27.4% | 29.3% |
| EPS | 4.3 | 3.9 | 15.4 | 16.4 |