ITC Limited is an Indian conglomerate headquartered in Kolkata and is the second-largest FMCG company in India in terms of market capitalization and the third-largest tobacco company in the world. The company employs 36,500 people at more than 60 locations across India, with its products available in 6 million retail outlets in India and exported to 90 countries.
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name was changed to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In 2001 the company was renamed ITC Limited, where "ITC" is no longer an acronym.
ITC operates in four business segments at present — FMCG Cigarettes, FMCG Others, Paperboards, Paper and Packaging, and Agri Business. The company has successfully diversified beyond its traditional tobacco business to become a comprehensive consumer goods conglomerate.
Established in 1910, ITC is the largest cigarette manufacturer and seller in the country. The company holds an 80% market share in the organized domestic cigarette market, offering brands like Insignia, India Kings, Classic, Gold Flake, American Club, Wills Navy Cut, Players, Scissors, Capstan, Berkeley, etc. This vertical is the most profitable business of the company with 78% contribution towards PBIT.
The cigarettes segment continues to be the backbone of ITC's profitability. The revenue from Cigarettes rose by 5.99% YoY to Rs 8,399.61 crore in the fourth quarter of FY25. In Q2 FY25, the segment revenue grew by 7% YoY, supported by volume growth and a relatively stable tax regime.
The FMCG Others segment encompasses a wide range of consumer products including staples, spices, biscuits, confectionery, snacks, beverages, and personal care products. The company's FMCG 'Others segment reported a 5.06% year-on-year growth in revenue to Rs 13,894.24 crore in Q4 FY25, despite subdued demand conditions and a sharp rise in input costs.
The FMCG segment demonstrated resilient performance amidst subdued demand conditions and sharp escalation in input costs, though FMCG margin declined 140bps to 9.8% in FY25. The segment faced severe inflationary pressures in prices of edible oil, wheat, maida, potato, cocoa, packaging inputs – partially mitigated through focused cost management initiatives, portfolio premiumisation and calibrated pricing actions.
The Agri Business segment posted a 17.68% year-on-year rise in revenue to Rs 3,649.16 crore in Q4 FY25, driven by strong performance in leaf tobacco, value-added agri products, and rice exports. The segment demonstrated strong customer relationships and agile execution continuing to drive growth in Leaf Tobacco & Value Added Agri exports.
The company's paperboards, paper and packaging segment remained impacted by low-priced imports from China and Indonesia, subdued domestic demand, and a sharp surge in wood prices. Segmental revenue for paperboards, paper & packaging rallied 5.53% YoY to Rs 2,187.62 crore in Q4 FY25.
Net profit of ITC rose 285.26% to Rs 19727.37 crore in the quarter ended March 2025 as against Rs 5120.55 crore during the previous quarter ended March 2024. Sales rose 9.93% to Rs 18565.05 crore in the quarter ended March 2025 as against Rs 16888.73 crore during the previous quarter ended March 2024.
Revenue from operations (excluding excise duty) was at Rs 17,248.21 crore in the March quarter FY25, up 9.26% year on year. Profit before tax rose 2.05% year on year to Rs 6,416.85 crore in Q4 FY25. EBITDA improved by 2.46% year-on-year to Rs 5,986 crore in Q4 FY25, from Rs 5,842 crore in Q4 FY24.
For the full year, net profit rose 69.84% to Rs 34746.63 crore in the year ended March 2025 as against Rs 20458.78 crore during the previous year ended March 2024. Sales rose 10.78% to Rs 74653.32 crore in the year ended March 2025 as against Rs 67391.04 crore during the previous year ended March 2024.
ITC Ltd has a market capitalisation of ₹ 5,24,279 Cr as on 27-Jun-2025. As per Value Research classification, it is a Large Cap company. The P/E ratio of ITC Ltd is 15.09 times as on 27-Jun-2025, a 28% discount to its peers' median range of 20.83 times.
The company has shown resilience in challenging market conditions. ITC's financial delivery (+10.2% revenue and +2.3% operating profit growth) is pretty respectable under these circumstances. The stock is providing a good dividend yield of 3.44% and the company has a good return on equity (ROE) track record with 3 Years ROE of 28.0%.
ITC successfully demerged its Hotels Business into ITC Hotels Limited effective January 1, 2025. The business has been classified as 'Discontinued Operations' in the financial results for the year ended 31st March 2025. The business has been demerged into ITC Hotels Limited (ITCHL) w.e.f. 01 January 2025, with ITCHL shares listed on stock exchanges on 29 January 2025.
The company has made several value accretive acquisitions in high-growth & future-facing businesses in the FMCG space: Sresta Natural Bioproducts (24 Mantra Organic Foods), Mother Sparsh Baby Care (Mother Sparsh) and Ample Foods (Prasuma & Meatigo).
ITC maintains strong ESG credentials with MSCI-ESG "AA" rating for the 7th successive year and inclusion in the Dow Jones Sustainability Emerging Markets Index for the fifth year in a row. The company's commitment to sustainability is evident through its long-standing water and carbon positive status, alongside innovative product developments in packaging and food.
As of March 2024, British American Tobacco is the largest shareholder in the company with a 25.5% stake, followed by Life Insurance Corporation of India which holds 15.2%. Despite the sale, BAT will retain a significant 23.1% stake in ITC, maintaining a long-standing partnership that dates back over a century. As of March 2025, the London-listed tobacco giant held a 25.44% stake in ITC, through its affiliates.
ITC has fixed 28 May 2025 as record date for payment of final dividend of Rs 7.85 per ordinary equity share for FY 2025. In the quarter ending March 2025, ITC Ltd has declared dividend of ₹7.85 - translating a dividend yield of 5.22%.
ITC Limited remains a cornerstone of Indian equity markets, offering investors exposure to a diversified business model spanning traditional tobacco products and modern consumer goods. The company's strong market positions, consistent dividend payments, and strategic focus on sustainability make it an attractive proposition for long-term investors seeking stability and growth in the Indian consumer market.
