ITC has launched a premium sugar-free Coconut Cola as part of its strategy to expand its beverage portfolio, targeting the health-conscious segment and competing with global giants Coca-Cola and PepsiCo. The company plans to introduce additional flavors and variants while focusing on the premium end of the beverage market.

ITC is facing significant near-term challenges due to a tax hike exceeding 40%, which has led to a projected high single-digit volume decline and a roughly 20% EBIT decline in its cigarette business for the current quarter. Nomura maintains a reduced rating on the stock, although they expect the worst impacts to be behind the company after the first quarter.

ITC is navigating the current cycle of rural and urban demand, with a focus on pricing power and category mix to shape its earnings outlook amid changing consumption trends.

ITC is discussed regarding whether the worst may already be priced into its stock amid concerns about rural demand.

During FY26, ITC earned Rs 11,204 crore in foreign exchange, with direct earnings of Rs 8,286 crore primarily from agri commodity exports. The company reported that around 60% of its foreign exchange earnings over the past decade came from agri exports, and its FMCG businesses are expanding their export footprint in over 70 countries. ITC's Agri Business has strengthened its position as a leading coffee exporter and is diversifying its export footprint to mitigate the impact of higher US tariffs.

ITC reported a consolidated revenue of 89,913.33 crore in FY26, a 10% increase over the previous year, with its FMCG portfolio excluding cigarettes achieving consumer spending of 37,000 crore. However, some of its new acquisitions, including Ample Foods and Sproutlife Foods, reported losses, indicating challenges in profitability despite a strong revenue growth from its digital-first and premium brands. Analysts noted that ITC's profit margins remained resilient, with a 34.6% EBITDA margin in FY26, outperforming peers like Marico and Hindustan Unilever.

ITC paid a total dividend of Rs 3,895.75 crore to British American Tobacco-linked entities in FY26, marking an 8.1% decline from FY25. The company also acquired trademarks from BAT for Rs 403.61 crore and reported increased sales of goods and services to BAT group companies.