ITC posts 5% rise in standalone profit as cigarette taxes, West Asia disruptions weigh on quarterly performance

ITC Limited on Thursday reported a 4.9% rise in standalone profit for the March quarter and recommended a final dividend of ₹8 per share, taking the total payout for FY26 to ₹14.50 per share.

Quarterly performance

The company’s standalone net profit from continuing operations rose to ₹5,113.36 crore in Q4FY26 from ₹4,874.93 crore a year earlier, while revenue from operations climbed 17.5% to ₹21,694.67 crore. EBITDA increased 7.3% year-on-year to ₹6,425.95 crore, though the company said the quarter was marked by supply chain disruptions, logistical challenges and geopolitical volatility linked to the West Asia conflict.

ITC said its FMCG business delivered robust growth, with revenue up 15% year-on-year, while the paper segment continued to improve, with profits rising 21% year-on-year and 24% sequentially. Agri business performance, however, was affected by “timing impact due to deferral of sales amidst West Asia conflict,” and the company added that higher input prices toward the end of the quarter were mitigated through “focused market interventions, supply chain agility, cost management and judicious pricing actions”.

Cigarette taxation impact

The cigarettes business remained a key driver of revenue, but ITC flagged a sharp rise in taxes from February 1, 2026, after the increase in GST and excise duties. The company said the change makes gross revenue and excise duty figures not strictly comparable with the previous year. It also warned that the unprecedented tax increase could fuel illicit trade, though it said it had responded with “staggered and agile pricing actions” and portfolio re-architecture to protect market standing.

Dividend and outlook

The board recommended a final dividend of ₹8 per share for FY26. Including the interim dividend of ₹6.50 per share already paid in February, the total dividend for the year comes to ₹14.50 per share, compared with ₹14.35 per share in FY25.

Management said the company delivered a “resilient performance during a challenging macroeconomic and operating environment,” with full-year gross revenue up 10.1% and EBITDA up 4.9% on a standalone basis. It also highlighted strong growth in FMCG-others, rebound in paper, and continued expansion in digital-first and organic businesses.

The record date for the final dividend is May 27, 2026, while the 115th AGM has been scheduled for July 23, 2026.

Shares of ITC Limited ended Thursday flat at ₹307.65 apiece on the NSE. The stock has fallen over 28% during the past year, underperforming the benchmark Nifty 50 index that has fallen nearly 5% during the same period.