Revenue and Profitability Trends
ITC's net sales have shown a consistent upward trajectory, rising from ₹49,862 crore in March 2019 to ₹75,323 crore in March 2025. Despite a slight dip in fiscal 2023, the overall trend reflects strong top-line growth, particularly notable between 2021 and 2025, where sales surged by over 50%. Operating profit margins, excluding other income, have remained relatively stable, fluctuating between 34.4% and 39.3%, with a slight contraction to 34.8% in the latest fiscal year. Gross profit margins have similarly trended downward from a peak of 44.3% in 2020 to 38.1% in 2025, indicating some pressure on cost structures.
Profit after tax (PAT) margins have been resilient, maintaining a range between 25.8% and 31.8% over the period. The consolidated net profit saw a significant jump in 2025 to ₹34,747 crore, largely influenced by exceptional items, compared to ₹12,592 crore in 2019. Earnings per share (EPS) have more than doubled from ₹10.27 in 2019 to ₹27.77 in 2025, underscoring enhanced shareholder returns.
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Cost Structure and Expenditure
The company's expenditure profile reveals rising raw material costs, which increased from ₹13,403 crore in 2019 to ₹23,757 crore in 2025, reflecting inflationary pressures and expanded operations. Purchase of finished goods also rose substantially, particularly in 2025 at ₹8,947 crore. Employee costs have grown steadily, reaching ₹6,170 crore in 2025, consistent with the company's expanding workforce and wage inflation. Other expenses have fluctuated but generally increased, standing at ₹11,197 crore in the latest fiscal year. Despite these rising costs, ITC has managed to sustain healthy operating profits, aided by efficient cost management and scale benefits.
Balance Sheet and Asset Base
ITC's total assets have expanded from ₹73,761 crore in 2021 to ₹88,003 crore in 2025, reflecting ongoing investments and business growth. Shareholder's funds have also increased, though with some fluctuations, standing at ₹70,030 crore in 2025. The company has effectively reduced its long-term borrowings to zero by 2025, signalling a strong balance sheet with minimal debt. Non-current assets, including gross block and investments, have grown, with net block assets rising to ₹21,051 crore in 2025. Current assets have also increased, supported by higher inventories and current investments, which reached ₹16,288 crore in 2025.
Cash Flow and Financial Health
Cash flow from operating activities has remained robust, with ₹17,627 crore generated in 2025, slightly higher than previous years. Investing activities showed a modest outflow of ₹563 crore in 2025, a reversal from inflows in 2024, indicating ongoing capital expenditure. Financing activities reflected significant outflows, primarily due to dividend payments and debt repayments, amounting to ₹17,037 crore in 2025. The net cash inflow was marginal at ₹25 crore, maintaining a stable cash position with closing cash and cash equivalents at ₹622 crore.
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Summary of Historical Performance
Over the past six years, ITC has demonstrated consistent growth in revenue and profitability, supported by a strong balance sheet and prudent financial management. The company’s ability to maintain solid profit margins amid rising costs and inflationary challenges highlights operational efficiency. The reduction of debt to nil by 2025 further strengthens its financial position, while steady cash flows underpin ongoing investments and shareholder returns. Earnings per share growth and expanding reserves reflect the company’s commitment to value creation for investors.
While margins have experienced some compression, ITC’s diversified business model and strategic investments have enabled it to sustain growth and profitability. The company’s financial discipline and asset quality provide a solid foundation for future expansion, making it a noteworthy player in the FMCG and diversified sectors.
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