Indian consumer goods major ITC Ltd is seeing early signs of success from its digital-first and premium consumer brands as it aggressively diversifies its fast-moving consumer goods (FMCG) business beyond the flagship Aashirvaad brand.
ITC has built a portfolio of high-growth acquisitions over the past few years. Brands such as Sresta Natural Bioproducts (24 Mantra Organic), Sproutlife Foods (Yoga Bar), Mother Sparsh Baby Care, and Ample Foods (Prasuma & Meatigo) grew 60% during FY26, according to it latest annual report. Together, they are clocking an annual revenue run rate (ARR) of over ₹1,350 crore in FY26. ITC reported a consolidated revenue of ₹89,913.33 crore in FY26, a 10% increase over the previous year. The FMCG portfolio (excluding cigarettes) achieved consumer spending of ₹37,000 crore, including trade margins and GST, according to the annual report.
However, some of these businesses are yet to turn profitable. For instance, Ample Foods reported a net loss of ₹5.2 crore in FY26. ITC acquired a 43.75% stake in the company in April 2025 for ₹131.25 crore to anchor its frozen foods business, which now reaches over 200 towns via quick commerce and traditional retail channels.
Sproutlife Foods Private Limited reported a ₹9.84 crore loss in FY26 compared with a ₹69.4 crore loss in the previous year. ITC holds 47.50% stake in the company, having made an initial investment in 2023.
Natural babycare products brand Mother Sparsh reported a loss of ₹2.18 crore in FY26 compared to ₹13.18 crore loss in FY25. ITC, which first invested in the babycare brand in 2021, now holds a 39.47% stake in the company.
These three brands are classified as associates of ITC Ltd. Sresta Natural Bioproducts was amalgamated into the company and does not report separate financials.
These acquisitions are a part of ITC's ‘Next Strategy’, which focuses on building a future-ready consumer portfolio through acquisitions in fast-growing categories. Aashirvad remains ITC’s star brand in the FMCG segment, with products such as atta, salt and dairy products. "Aashirvad's value-added variants and adjacencies have grown three-fold over the last five years, with its share in the portfolio doubling over this period,” the annual report said.
Another recent addition is the fresh food business, which operates four brands—ITC Master Chef Creations, ITC Aashirvaad Soul Creations, ITC Sunfeast Baked Creations, and Sansho by ITC Master Chef—through more than 70 cloud kitchens in five cities.
Chasing the digital consumer
ITC is the latest to join a growing list of FMCG majors leveraging acquisitions to fuel future growth. Hindustan Unilever’s acquired brands, Minimalist and Oziva, now contribute over ₹1,400 crore in ARR. Similarly, Marico’s digital-first portfolio—which includes Beardo, Kaya, Just Herbs, and Plix—has crossed ₹1,100 crore in annual recurring revenue in FY26. These milestones highlight how digital-first brands are becoming crucial growth engines for India’s consumer goods giants.
“The personal care segment remains a relative weak spot,” analysts at Motilal Oswal Financial Services said in a June report about ITC. “The overall portfolio performance continues to be inferior to its peers such as HUL, Marico and Emami,” the report added. This is largely because ITC's future-ready strategy has prioritized acquisitions and expansions in the food and beverage segment rather than personal care.
However, analysts noted that ITC’s profit margins remained resilient despite rising commodity costs, outperforming those of its peers. According to Motilal Oswal, ITC reported a 34.6% Ebitda margin in FY26, compared with a 17% for Marico and 23.6% for HUL.
Shares of ITC closed marginally lower at ₹290, down 0.12% on the National Stock Exchange on Thursday, underperforming the benchmark Nifty 50, which gained 0.14%.