ITC Limited has completed the acquisition of the pulp and paper business of Aditya Birla Real Estate Limited, operated under the name Century Pulp and Paper. The transaction, finalized on August 1, 2026, marks the conclusion of a strategic expansion move for ITC into the pulp and paper sector through the integration of this established operation.

The acquisition was structured as a slump sale on a going concern basis. This means ITC took over the entire business unit—including its assets, liabilities, existing contracts, and employees—as a single operational entity rather than purchasing individual assets. The deal was executed in accordance with the Business Transfer Agreement dated March 31, 2025.

Transaction Details

The completion follows previous disclosures made by ITC to the stock exchanges. The company had earlier informed the markets about the proposed acquisition via letters dated March 31, 2025, and December 17, 2025. The final update confirms that all necessary steps to transfer the business have been concluded.

Regulatory Filings

ITC notified the National Stock Exchange of India Ltd and BSE Ltd of the completion on August 1, 2026. The communication was signed by R. K. Singhi, Executive Vice President & Company Secretary at ITC Limited. The filing also included copies to the Securities Exchange Commission in Washington DC and Societe de la Bourse de Luxembourg, indicating the international regulatory scope of the disclosure requirements for this transaction.

What This Means

By acquiring Century Pulp and Paper as a going concern, ITC gains immediate access to an operational pulp and paper infrastructure without the lead time required to build new facilities from scratch. The inclusion of existing contracts and employees in the slump sale suggests a seamless transition aimed at maintaining continuity in production and customer relationships. This move aligns with ITC’s broader strategy to diversify its revenue streams beyond its core FMCG and hotel businesses.

ITC Limited reported a 27% year-on-year decline in standalone net profit after tax (PAT) to ₹3,579 crore for the quarter ended June 30, 2026, as higher excise duties on cigarettes and geopolitical disruptions weighed on overall earnings. Standalone EBITDA fell 28% YoY to ₹4,514 crore, while gross revenue rose 28% YoY to ₹26,794 crore. The Board of Directors approved the results on July 31, 2026.

The decline in profitability was largely driven by the Cigarettes segment, where net revenue dropped 25% YoY following an unprecedented increase in taxes. Management implemented staggered pricing actions and portfolio re-architecting to mitigate volume migration to illicit trade. Consolidated PAT (before exceptional items) fell 23% YoY to ₹4,103 crore, though this figure includes a one-time gain from the acquisition of control over Sproutlife Foods Private Limited.

Segment Performance

The FMCG segment (excluding Cigarettes) demonstrated resilience with revenue growing 12% YoY, or 16% excluding staples. Key drivers included Dairy, Snacks, Noodles, and Frozen Snacks, which posted growth exceeding 20%. Personal Care products contributed mid-teens growth. The Digital-first and Organic portfolio, comprising brands like Yogabar and 24 Mantra, reached an annual revenue run rate (ARR) of approximately ₹1,500 crore.

The Paperboards, Paper & Packaging segment sustained its recovery momentum, with segment revenue up 9% YoY and PBIT surging 38% YoY. This improvement was supported by broad-based gains in net realisations and moderating wood costs. The Agri Business segment reported underlying revenue growth of 9% YoY, adjusting for timing differences in wheat sales and trade disruptions linked to the West Asia conflict.

What the Numbers Show

A key divergence in ITC’s performance is the contrast between top-line gross revenue growth and bottom-line profit contraction. While gross revenue expanded by 28% YoY, net revenue fell 14% YoY (excluding Agri, it fell 6%). This suggests that while volume or base pricing increased, significant cost pressures—such as sharp rises in fuel, edible oil, and packaging inputs due to the West Asia conflict—eroded margins. The company partially cushioned these impacts through strategic inventory covers and commodity hedges, but the tax headwind in cigarettes remains the primary drag on consolidated profitability.