Why ITC’s digital-first brands are becoming a growth engine

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TL;DR:

ITC’s new-age FMCG brands have crossed ₹1,350 crore in annual revenue run rate, showing its premium and digital-first acquisitions are gaining scale. The bigger test now is profitability: growth is visible, but margin discipline will decide whether these brands become lasting profit engines.

Article:

ITC’s digital-first and premium FMCG bets have crossed an annual revenue run rate of over ₹1,350 crore in FY26, giving the conglomerate fresh proof that acquisitions such as 24 Mantra Organic, Yoga Bar, Mother Sparsh, Prasuma and Meatigo are moving beyond experimentation into scale.

The milestone matters because ITC is trying to deepen growth outside cigarettes and legacy staples. Its non-cigarette FMCG business reported ₹24,209.75 crore in segment revenue in FY26, up 10.1% year-on-year, while segment profit rose 14.1% to ₹1,802.63 crore.

ITC said the acquired brands delivered “robust” growth and are expected to strengthen its presence in high-growth, future-facing categories. The portfolio has benefited from rising demand for health-focused snacks, organic staples, baby care and premium frozen foods, categories that travel well through modern trade, e-commerce and quick commerce.

The larger FMCG engine is also gaining heft. ITC’s non-cigarette FMCG portfolio reached over ₹37,000 crore in annual consumer spend and nearly 280 million households in FY26. But profitability in newer bets remains uneven: Mint reported losses at Ample Foods, Sproutlife Foods and Mother Sparsh, even as losses narrowed for some entities.

The takeaway is blunt: ITC’s acquisition-led FMCG strategy is working on scale, but the next test is margin discipline. In premium FMCG, speed can buy relevance. Profit will decide permanence.