ITC Q3 results: Net revenue grows 5.6% to ₹18,017 crore; FMCG and cigarettes lead momentum
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Diversified conglomerate ITC Limited on Thursday reported a steady performance for the third quarter ended December 31, 2025, marked by volume growth in its cigarette business and double-digit expansion in the FMCG-Others segment.
The company’s net revenue (revenue from operations excluding excise duty) came in at ₹18,017.14 crore, compared to ₹17,052.82 crore in Q3 FY25. This reflects a core business growth of 5.65% YoY.
Profitability and margins
ITC's operational efficiency remained a highlight. Standalone EBITDA grew by 7.6% YoY to ₹6,737 crore. This growth outpaced the net revenue increase, leading to a 63-basis point expansion in EBITDA margins, which came it at 34.81% during Q3 FY26 vs 34.18% during Q3 FY25.
During the quarter under review, the company reported a standalone net profit of ₹5,088.83 crore, down 9.7% YoY against ₹5638.25 crore reported in the year ago quarter. Standalone earnings per share (EPS) for the quarter stood at ₹4.06.
Following the results, the board declared an interim dividend of ₹6.50 per share for the financial year ending March 31, 2026, with a record date of February 4, 2026.
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Segment performance
FMCG – Others: This segment delivered a standout performance with a 12.6% YoY growth in consolidated revenue. Broad-based growth was observed across staples, biscuits, noodles, and dairy. The segment’s PBIT (profit before interest and taxes) surged by 42% YoY, aided by premiumisation and stable commodity prices.
Cigarettes: The business sustained its volume-led growth momentum, with net segment revenue up 7.9% YoY. However, management raised concerns over an "unprecedented increase" in cigarette taxes effective February 1, 2026, which it warned could provide further impetus to the illicit cigarette trade.
Agri-business: Revenue grew by 6.3% YoY, driven by leaf tobacco exports and value-added agri products (VAAP) like coffee and aqua.
Paperboards, paper & packaging: Despite challenges from low-priced imports and high wood prices, the segment saw a 19% sequential (QoQ) improvement in underlying profits.
What lies ahead
The "ITC Next" strategy continues to bear fruit, particularly in spaces like quick commerce and e-commerce, which saw robust growth. The company’s digital-first and organic brands, including Yogabar and Mother Sparsh, maintained a high growth trajectory, jumping 60% YoY.
While the macroeconomic environment shows signs of resilient rural demand, ITC remains cautious regarding the impact of new tax regimes on its core cigarette portfolio and the continued pressure on wood availability due to seasonal factors.
The shares of ITC Ltd ended 0.73% lower at ₹318.80 apiece on the national stock exchange on Friday. The company's stock has slipped over 26% in the past one year, underperforming the benchmark Nifty 50 index which has risen close to 11% during the period.