ITC Q4 Result: Net profit drops 74% YoY to ₹5,113 crore; board recommends final dividend of ₹8 per share for FY26

The country's leading fast-moving consumer goods (FMCG) company, ITC Limited, reported a decline of 74% in its standalone net profit at ₹5,113 crore on Thursday, May 21, for the January-March quarter of FY26, from ₹19,562 crore in the same period last year.

However, the company’s profit from continuing operations rose 5% annually to ₹5,113.36 crore from ₹4,874.93 in the same quarter a year back.

The company's revenue from operations, however, increased 17% year-on-year (YoY) to ₹21,695 crore during the quarter under review in contrast to ₹18,495 crore in the year-ago period.

ITC reported stable operational performance as its earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 7% to ₹6,426 crore in Q4 FY26 as against ₹5,987 crore in the corresponding quarter of the previous fiscal year.

For Q4 FY26, the EBITDA margin contracted to 29.62% as against 32.37% YoY.

ITC in a statement said its standalone performance in Q4 reflected strong growth despite supply chain disruptions and logistical challenges arising from the ongoing West Asia conflict, with gross revenue rising 17.5% YoY. The company noted that its FMCG segment delivered robust revenue growth of 15% YoY.

The company added that the paper segment continued to improve, with profits increasing 21% YoY and 24% sequentially. It also said that the agribusiness performance was impacted by timing differences due to the deferral of sales amid the conflict, while overall EBITDA grew 7.3% YoY (9% excluding agri) and PAT rose 5% YoY.

For the full year, ITC stated that gross revenue increased 10.1% annually, while EBITDA grew 4.9% YoY, or 6% YoY excluding the paper segment.

On a consolidated basis, ITC said its performance was supported by strong contributions from group entities, including ITC Infotech India Limited, Surya Nepal Private Limited and ITC Hotels Limited. The company reported a 17.1% YoY rise in gross revenue and a 6.9% YoY increase in EBITDA (8% excluding agri) for Q4, while for the full year, gross revenue rose 10.3% YoY and EBITDA grew 5.4% YoY (6% excluding the paper segment).

Segment updates

The company has also witnessed strong growth across categories, viz., staples, biscuits, snacks, frozen snacks, noodles, dairy, premium personal wash, homecare and agarbatti.

ITC said that sharp surge in prices of key input materials (viz., edible oil, soap noodles, packaging inputs, etc.) towards the end of the quarter amidst West Asia conflict is being proactively mitigated through focused market interventions, supply chain agility, cost management and judicious pricing actions.

Furthermore, ITC said its cigarette business was impacted by an unprecedented increase in taxes effective February 1, 2026, along with a transition to the new tax structure. For FY26, the segment reported net revenue growth of 8.2% year-on-year, while segment PBIT increased 5.1% YoY, with Q4 PBIT rising 7.2% YoY.

The company added that the segment delivered strong performance until January 2026, supported by strategic portfolio and market interventions.

Dividend details

Along with the earnings, ITC’s board of directors has recommended a final dividend of ₹8 per ordinary share of ₹1 each for the financial year ended March 31, 2026. The dividend is subject to approval by shareholders at the company’s annual general meeting scheduled for July 23, 2026.

If declared, the final dividend will be paid between July 24 and July 29, 2026, to eligible members, ITC said in a regulatory filing. The company has fixed May 27, 2026, as the record date for determining the entitlement of shareholders for the final dividend.

Including the interim dividend of ₹6.50 per ordinary share declared on January 29, 2026, the total dividend for FY26 stands at ₹14.50 per ordinary share of ₹1 each.

After the earnings, shares of ITC settled at ₹308.05 apiece on the National Stock Exchange, rising 0.16%.