ITC's Digital Bets: ₹1,350 Cr ARR, Profitability a Work in Progress

ITC Ltd. is demonstrating early success with its strategy of acquiring digital-first and premium consumer brands, diversifying its fast-moving consumer goods (FMCG) portfolio beyond the established Aashirvaad brand.

In FY26, a portfolio of high-growth acquisitions, including 24 Mantra Organic, Yoga Bar, Mother Sparsh Baby Care, and Prasuma & Meatigo, collectively achieved an annual revenue run rate (ARR) surpassing ₹1,350 crore. These brands experienced a significant 60% growth during FY26.

Despite strong revenue figures, profitability is still being developed for some acquired entities. For example, Ample Foods reported a net loss of ₹5.2 crore in FY26, while Sproutlife Foods narrowed its loss to ₹9.84 crore from ₹69.4 crore in the prior year. Mother Sparsh also reported a reduced loss of ₹2.18 crore.

These acquisitions are part of ITC's 'Next Strategy,' focusing on fast-growing categories. While Aashirvaad remains a core performer, ITC is also expanding into fresh foods with multiple brands operating from cloud kitchens. The company's FMCG sector, excluding cigarettes, recorded consumer spending of ₹37,000 crore in FY26.

ITC's approach mirrors that of other FMCG giants like Hindustan Unilever and Marico, which are also leveraging acquisitions for growth. Analysts note ITC's personal care segment as a weaker area compared to peers, but highlight its resilient profit margins, which exceeded those of Marico and HUL in FY26.