Key Takeaways:
- ITC Profit Falls 74% to ₹5,113 crore due to one-off tax adjustments.
- Revenue from operations rose 17% to ₹21,695 crore, driven by strong FMCG sales.
- The board recommended an ₹8 final dividend, bringing the full-year payout to ₹14.50.
ITC Limited reported a 74% year-on-year decline in standalone net profit to ₹5,113 crore for the fourth quarter ended March 31, as higher taxes on cigarettes and supply chain disruptions weighed on earnings, while the board recommended a final dividend of ₹8 per share for FY26.
Revenue Growth Offsets Pressure on Margins
The company’s ITC Profit Falls from ₹19,562 crore a year earlier. However, profit from continuing operations rose 5% to ₹5,113.36 crore from ₹4,874.93 crore in the corresponding quarter last year.
Revenue from operations increased 17% to ₹21,695 crore during the January-March period, compared with ₹18,495 crore a year earlier. EBITDA rose 7% to ₹6,426 crore from ₹5,987 crore in the year-ago quarter.
Despite higher revenue, EBITDA margin narrowed to 29.62% from 32.37% last year, as ITC Profit Falls amid rising tax and operational pressures.
ITC said its fourth-quarter performance reflected “strong growth despite supply chain disruptions and logistical challenges arising from the ongoing West Asia conflict.”
The company said its fast-moving consumer goods segment posted 15% year-on-year revenue growth, driven by categories including staples, biscuits, snacks, frozen foods, noodles, dairy products, personal care, home care products and agarbatti.
“The sharp surge in prices of key input materials is being proactively mitigated through focused market interventions, supply chain agility, cost management and judicious pricing actions,” the company said in a regulatory filing.
Cigarette Tax Increase Impacts Segment Performance
ITC said its cigarette business was affected by an “unprecedented increase in taxes” effective Feb. 1, 2026, along with the transition to a new tax structure, contributing to why ITC Profit Falls in the fourth quarter.
The company said the cigarette segment delivered strong performance until January, supported by portfolio and market interventions. For FY26, segment net revenue grew 8.2%, while segment profit before interest and taxes increased 5.1%.
Quarterly segment profit before interest and taxes rose 7.2% year-on-year.
The company also reported improvement in its paper segment, where profits increased 21% year-on-year and 24% sequentially. ITC said its agribusiness performance was affected by deferred sales linked to the West Asia conflict.
On a consolidated basis, the company reported a 17.1% increase in gross revenue and a 6.9% rise in EBITDA for the quarter. ITC said contributions from subsidiaries, including ITC Infotech India Limited, Surya Nepal Private Limited and ITC Hotels Limited, supported overall performance.
For the full financial year, ITC reported a 10.1% rise in gross revenue and a 4.9% increase in EBITDA.
Board Recommends ₹8 Final Dividend
The board recommended a final dividend of ₹8 per ordinary share of face value ₹1 for FY26, subject to shareholder approval at the company’s annual general meeting scheduled for July 23.
If approved, the dividend will be paid between July 24 and July 29 to eligible shareholders on record as of May 27, the company said.
Including the interim dividend of ₹6.50 per share announced in January, the total dividend for FY26 stands at ₹14.50 per share despite ITC Profit Falls during the quarter.
Following the earnings announcement, ITC shares closed 0.16% higher at ₹308.05 on the National Stock Exchange of India.
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