The macroeconomic fundamentals of the Indian economy remain resilient despite global headwinds marked by geo-political tensions, evolving trade policy dynamics and heightened uncertainty & volatility in the operating environment.

High frequency indicators for the quarter suggest mixed trends. Buoyancy in agriculture & service sector, moderating inflation and rural wage growth are some of the key positives; on the other hand, industrial growth, automobile sales, credit growth and electricity & fuel consumption remain subdued. Rural demand continued to demonstrate resilience; expectations of a normal monsoon and kharif crop sowing trends augur well for the rural economy. Early signs of recovery in urban consumption demand were visible during the quarter.

Lower inflation, reduction in interest rates & liquidity support by RBI, tax cuts announced in the recent Union Budget along with front loading of Government expenditure are expected to bolster the growth momentum going forward.

Amidst a challenging operating environment as stated above, the Company delivered resilient performance during the quarter. Gross Revenue³ stood at Rs. 20,911 crores representing a robust growth of 20% YoY. PBT and PAT stood at Rs. 6,545 crores and Rs. 4,912 crores respectively. Earnings Per Share for the quarter stood at Rs. 3.93 (LY 3.86).

FMCG - OTHERS

• The FMCG Businesses witnessed pick-up in growth momentum; up 8.6% YoY ex Notebooks

- Overall growth at 5.2% YoY; Notebooks industry continues to operate under deflationary conditions due to low-priced paper imports and witness opportunistic play by local/regional competition; Beverages category was impacted by unseasonal rains during the quarter

- Staples, Biscuits, Dairy, Premium Personal Wash, Homecare and Agarbattis drive growth

- Segment EBITDA margin improved 50 bps QoQ. Prices of major commodities (viz. edible oil, wheat, maida, cocoa, soap noodles etc.) remain elevated on YoY basis, weighing on margins. The Businesses continued to mitigate the impact through focused cost management initiatives, portfolio premiumisation and calibrated pricing actions.

• Trade & marketing investments were sustained at competitive levels towards supporting growth and market standing.

• Digital first & Organic portfolio, comprising the Yogabar, Mother Sparsh, Prasuma & Meatigo and 24 Mantra brands, continue their strong growth momentum clocking an ARR of appx. Rs. 1000 cr.

• NewGen channels (viz. e-Commerce, Quick Commerce, Modern Trade) witnessed robust growth on the back of sharp execution of channel-specific joint business plans, collaborations, format-based assortments and category-specific sell-out strategies.

• The Company's deep & wide multi-channel distribution network, with tailored channel-specific assortments, continues to sharp target opportunity areas through superior product availability and visibility interventions. Focused investments continue to be made to enhance distribution infrastructure and drive penetration.

► Branded Packaged Foods Businesses

► In the Personal Care Products Business, 'Fiama' range of Personal Wash products and 'Nimyle' range of Homecare products recorded strong growth leveraging the rapidly growing NewGen channels. In Fragrances category, Business continued to strengthen its product portfolio with the launch of 'Engage Double Power Deo' comprising 3 innovative variants. The recently launched 'Fiama Moisturising Bars with Japanese Hokkaido Milk' continue to gain robust consumer traction.

► The Education and Stationery Products Business continued to witness heightened competitive intensity especially from regional/local players on the back of sharp reduction in paper prices as a result of low-priced paper imports. Against this backdrop, 'Classmate' Notebooks sustained its leadership position through continued focus on portfolio premiumisation and innovation. During the quarter, Classmate concluded the third edition of its 'Classmate All Rounder' program, a national multi-skill competition for school students. This edition saw participation from over 1.9 lakh students across 700+ schools in 14 cities, demonstrating strong resonance with Classmate's vision of empowering students through enjoyable, well-rounded learning.

► 'Mangaldeep' Agarbattis and Dhoop recorded strong growth during the quarter leveraging a range of differentiated products backed by sustained & impactful communication of brand attributes, execution of channel-led trade inputs and retail distribution drives. The Mangaldeep range of Incense sticks and Dhoop was augmented with exciting new launches such as Mangaldeep Flora Agarbatti with novel fragrances of Oriental Lily & Japanese Blossom, and Dry Dhoop cones - an innovative new bambooless format for select markets. These new launches are eliciting encouraging consumer response.

FMCG - CIGARETTES

Net Segment Revenue up 7.7% YoY; Segment PBIT up 3.7% YoY

• Strategic portfolio and market interventions with focus on competitive belts and to counter illicit trade, drive volume-led growth and reinforce market standing.

- Differentiated variants and premium segment continue to perform well leveraging mainstream trademarks & innovation

- Agile last mile execution leveraging deep and wide distribution network.

• Consumption of high-cost leaf inventory weighed on margins; partly mitigated through product mix enrichment and cost management interventions

- Moderation in leaf tobacco procurement prices witnessed in current crop cycle.

• As seen in the past, stability in taxes on cigarettes, backed by deterrent actions by enforcement agencies, enables volume recovery for the legal cigarette industry from illicit trade leading to higher demand for Indian tobaccos and bolstering revenue to the exchequer from the tobacco sector. The recent amendment to the Central Goods and Services Tax Act, 2017, to include an enabling provision for implementing ‘Track and Trace’ mechanism, is also expected to strengthen the efforts of enforcement agencies towards controlling illicit cigarette trade.

AGRI BUSINESS

Agri Business Segment Revenue up 39% YoY driven by trading opportunities in Bulk commodities & exports of Leaf Tobacco; Segment PBIT up 22% YoY

• Revenue growth driven by agile execution of trading opportunities in bulk commodities leveraging multi-channel & digitally powered agri commodity sourcing network

• Leaf Tobacco exports also posted strong growth; Business continues to leverage its crop development expertise, superior product quality, and strong customer relationships.

• The Business continued to focus on scaling up Value-added agri portfolio (e.g. Aqua, Spices, Coffee); 2.2x over the last 4 years.

• Commercial sales from state-of-the-art facility to manufacture and export Nicotine & Nicotine derivative products set up by the Company’s wholly owned subsidiary, ITC IndiVision Limited, have progressively scaled up during the quarter.

• The Business continued to provide strategic sourcing support with traceability to the Branded Packaged Foods and Agri Businesses with sharply aligned procurement strategies in line with category-relevant market dynamics. Direct sourcing from FPOs through ITCMAARS (Metamarket for Advanced Agriculture and Rural Services) - a crop-agnostic ‘phygital’ full stack AgriTech platform, has now scaled up to about 40% of the wheat sourced for Aashirvaad Atta and Agri Business, leading to significant procurement related efficiencies and quality enhancement.

PAPERBOARDS, PAPER & PACKAGING

The operating environment remained challenging during the quarter, with sustained influx of low-priced supplies into global markets including India, elevated domestic wood prices and subdued realisations

• Segment Revenue grew 7% YoY

- Specialty Papers segment witnessed robust growth driven by capacity augmentation in Décor segment

• The Business continued its sharp focus on portfolio augmentation and structural cost management to mitigate near term challenges.

• The Business continues to focus on accelerating plantations in core areas, developing new areas, collaborating with other wood-based industries and implementing satellite-based plantation monitoring systems, among others. Representations continue to be made at appropriate forums for introduction of trade remedies to safeguard domestic industry.

• The Packaging and Printing Business witnessed signs of gradual uptick in domestic demand. The Business continues to focus on accelerating new business development, offering innovative and customised solutions.

• The sustainable paperboards/packaging solutions portfolio continues to witness strong growth leveraging cutting-edge innovation platforms and has grown to 3x in last 4 years.

• Structural advantages of the integrated business model, Industry 4.0 initiatives, strategic investments in High Pressure Recovery Boiler and proactive capacity augmentation in Value Added Paperboards aided in partly mitigating pressure on margins.

FoodTech Business

FoodTech Business, a new vector of growth envisioned in the ITC Next strategy, leverages the Company’s institutional strengths in Foods Science & Manufacturing, FMCG Food brands and Culinary expertise to tap into the fast-growing online food services segment

• A delectable range of cuisines is today being offered under 4 brands - ‘ITC Master Chef Creations’, ‘ITC Aashirvaad Soul Creations’, ‘ITC Sunfeast Baked Creations’ and ‘Sansho by ITC Master Chef’.

• The initiative has scaled up rapidly in a capital-efficient manner since inception, setting new benchmarks in culinary innovation and tech-enabled operations; GMV crossed Rs. 100 cr. in FY25.

• The full-stack food-tech platform has already scaled up to appx. 60 cloud kitchens across 5 cities and is now being progressively introduced across India.

CONTRIBUTION TO SUSTAINABLE DEVELOPMENT

ITC is a global exemplar in 'Triple Bottom Line' performance and is the only enterprise in the world of comparable dimensions to have achieved and sustained the three key global indices of environmental sustainability of being 'water positive' (for 23 years), 'carbon positive' (for 20 years), and 'solid waste recycling positive' (for 18 years). The Company sustained its 'AA' rating by MSCI-ESG for the 7th successive year - the highest amongst global tobacco companies. The Company has also been included in the Dow Jones Sustainability Emerging Markets Index for the fifth year in a row - a reflection of being a sustainability leader in the industry and a recognition of its continued commitment to people and planet. The Company continued to be part of the prestigious 'A List' for CDP Water by achieving the highest 'A' rating 'Leadership Level'. For CDP Climate, the Company retained 'Leadership Level' score of 'A -'

The Company's infrastructure facilities continue to set new benchmarks of sustainability. Till date, 9 units of the Company have achieved Platinum level certification under the AWS Standard.

The Sustainability Report 2025 is available on the Company's corporate website at
 https://www.itcportal.com/sustainability/itc-sustainability-report-2025/itc-sustainability-report-2025.pdf

Please refer link below for performance highlights of the quarter:
https://www.itcportal.com/investor/pdf/ITC-Quarterly-Result-Presentation-Q1-FY2026.pdf

The Board of Directors, at its meeting on 1st August 2025, approved the financial results for the quarter ended 30th June 2025, which are enclosed.