ITC · Tobacco · INE154A01025
Analyst mean 2.60 · 35 analysts · 0% bullishWhat the numbers mean when read together — computed from the filings, not a score.
Operating cash flow is only 88% of trailing profit. Worth watching whether the gap is working-capital timing or something structural.
Operating cash flow ₹18,464 cr vs trailing net profit ₹21,018 cr. A persistent gap below 1.0 can be benign (growth working capital) or a tell (profit not converting to cash).
Over the last year profit declined 40% even as revenue grew 4.7% — margins are compressing, and any premium being paid rests on a year that moved backwards on the bottom line.
Trailing revenue ₹78,869 cr (up 4.7%) but trailing profit ₹21,018 cr (down 40%). Rising sales with falling profit points to cost inflation not passed through, mix shift to lower-margin lines, or one-off gains in the base year.
Net margin has narrowed from 105.6% to 30.7% year-on-year — profitability per rupee of sales is shrinking.
Quarter net margin 30.7% vs 105.6% four quarters earlier. Sustained compression signals pricing pressure, cost inflation, or mix deterioration.
Free cash flow is positive and consistent — the business funds itself after capex.
Latest free cash flow ₹16,332 cr. Negative in only 0 of 12 years. A self-funding business needs less external capital and dilutes less.
Borrowings rose 692% over two years while the company also carries ₹38,128 cr in investments. Why borrow at interest while parking money elsewhere is a fair question.
Borrowings moved to ₹2,399 cr from ₹303 cr. Simultaneous large investments can be legitimate treasury management, or a sign that reported cash is not freely available.
Markers show corporate actions (splits, bonus, dividends). Prices are split-adjusted so the series is continuous.
| Metric | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 17,778 | 19,990 | 18,790 | 18,765 | 21,495 | 19,502 | 20,047 | 17,825 |
| Expenses | 11,233 | 13,438 | 12,428 | 12,246 | 14,678 | 12,807 | 13,165 | 10,900 |
| Other Income | 771 | 690 | 803 | 15,391 | 751 | 739 | 322 | 700 |
| Depreciation | 403 | 416 | 416 | 411 | 423 | 435 | 431 | 422 |
| Profit before tax | 6,903 | 6,811 | 6,740 | 21,489 | 7,128 | 6,979 | 6,754 | 7,173 |
| Net Profit | 5,177 | 5,054 | 5,013 | 19,808 | 5,343 | 5,187 | 5,018 | 5,470 |
| EPS | 4.08 | 3.99 | 3.94 | 15.76 | 4.19 | 4.09 | 3.94 | 4.30 |
| Item | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|
| Equity Capital | 1,231 | 1,232 | 1,243 | 1,248 | 1,251 | 1,253 |
| Reserves | 59,116 | 61,223 | 67,912 | 73,259 | 68,779 | 71,254 |
| Borrowings | 271 | 249 | 306 | 303 | 285 | 2,399 |
| Fixed Assets | 23,298 | 24,232 | 25,851 | 27,820 | 21,955 | 22,443 |
| CWIP | 4,011 | 3,226 | 3,003 | 2,861 | 1,091 | 1,602 |
| Investments | 24,871 | 24,841 | 29,415 | 31,114 | 34,720 | 38,128 |
| Total Assets | 73,761 | 77,196 | 85,831 | 91,754 | 88,003 | 93,637 |