ITC stock plans to absorb Yoga Bar maker after board approval

ITC's board approved a scheme on November 2, 2026, to merge wholly owned Sproutlife Foods Private Limited into the parent company. ET Retail reported that the scheme is subject to statutory and regulatory approvals and is intended to take effect from April 1, 2026.

Merger consolidates health foods

Sproutlife makes bars, muesli, oats, protein-rich foods and peanut butter under the digital-first Yoga Bar brand. It reported turnover of INR 451.71 crore, total assets of INR 150.07 crore and net worth of INR 5.22 crore in fiscal 2026, based on audited standalone accounts.

ITC said the merger should integrate operations, improve the use of financial and managerial resources and simplify the group structure by reducing the number of operating entities. Because Sproutlife is wholly owned, its shares held by ITC and its nominees will be cancelled when the scheme becomes effective. ITC will issue no new shares, and the shareholding pattern will not change.

Results keep cigarette pressure in focus

The transaction comes after ITC's September-quarter results. ET Retail reported an 18.5 percent decline in consolidated net profit to INR 4,229 crore, while net revenue rose 5 percent to INR 20,454 crore. Weaker cigarette earnings weighed on profitability, although the FMCG, agriculture and paper businesses delivered stronger growth.

For investors, the merger is primarily a structural step rather than an immediate share issuance or ownership event. The key next milestones are the required approvals and the execution of the scheme, alongside progress in ITC's non-cigarette businesses.

Investors can place ITC's corporate developments alongside the BSE Sensex market environment.

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