ITC Q4 Results 2026 Highlights: Revenue rises 17% YoY; dividend of ₹8 announced

The Company delivered a resilient performance during the year amidst a challenging macroeconomic and operating environment. Overall, for FY26, Gross Revenue at Rs. 80867.49 cr. increased by 10.1%, while EBITDA increased by 4.9% to Rs. 25208.22 cr. In the second half of the year, Gross Revenue and EBITDA grew by 12.2% and 7.5%, respectively.

Profit Before Exceptional items and Tax for the year stood at ₹26951.47 cr. Earnings Per Share for the year stood at Rs. 16.20 (previous year Rs. 16.07).

Paper segment performance continues to improve as Q4 profit rose 21% YoY and 24% QoQ. What drove the performance?

- Partial relief to industry with the imposition of Minimum Import Price (MIP) on Virgin Multi-layer Paperboard effective 22nd August, 2025 leading to progressive decline in low-priced imports

- Wood prices witnessed moderation amidst improved availability

- Strong growth in Specialty Papers segment led by Décor paper

- Industry continues to represent to policy makers for sustained safeguard measures in respect of low-priced imports of paperboards and coated/uncoated paper

- Packaging and Printing Business witnessed robust growth during the quarter driven by Cartons portfolio.

Agri Business Segment performance reflects the impact of geopolitical disruptions, timing differences, and high base, said ITC.

• Full Year: Segment Revenue up 3% (2-year CAGR 13%)
• Exports were relatively subdued during the quarter due to the West Asia conflict, which led to disruptions; continued focus on market development and scaling up business, leveraging structural capabilities (sourcing, processing, customer relationships)
• Rapid scale-up in exports of Nicotine & Nicotine derivative products during the quarter, leveraging the state-of-the-art facility at Mysuru.

ITC said that a strategic approach was adopted to mitigate the impact of the unprecedented increase in tax incidence:

▪ Staggered and agile pricing actions to minimise risk of significant volume shift to illicit trade & consequent revenue loss to the Exchequer

▪ Re-architecting the product portfolio leveraging diverse range of powerful trademarks

The business continues to respond with speed & agility and has taken several steps in the past couple of months to fortify its portfolio and sustain market standing.

• Net Segment Revenue: Up 8.2% YoY (Full Year).
• Segment Results: Up 5.1% YoY (Full Year).

Performance Trend: Strong performance was recorded until January 2026, driven by strategic portfolio and market interventions.

Taxation Update: An unprecedented increase in taxes on cigarettes took effect on 1st February, 2026, requiring a transition to a new tax structure during the quarter.

Robust performance in FMCG–Others as the segment revenue grew 15% YoY (14% YoY ex-Sresta). Meanwhile, EBITDA margin was up ~200 bps YoY to 11% (ex-Sresta).

ITC board recommended a final dividend of ₹8 per ordinary share of ₹1 each for the financial year ended 31 st March, 2026, subject to declaration of the same by the Members at the ensuing 115th Annual General Meeting of the Company which has been convened for Thursday, 23rd July, 2026; the Final Dividend, if declared, will be paid between Friday, 24th July, 2026 and Wednesday, 29th July, 2026 to those Members entitled thereto.

ITC has fixed Wednesday, 27th May, 2026, as the Record Date for the purpose of determining the entitlement of the Members for such Final Dividend.

ITC shares gyrated sharply in the short window after the Q4 results announcement. It ended the session at ₹307.95, up 0.13%.

The revenue from operations jumped 17% YoY to ₹23,821.48 crore from ₹20,376.36 crore in the same period a year ago.

ITC posted a consolidated net profit (attributable to owners) of ₹5,388 crore for Q4FY26, down 72% from ₹19727.37 crore posted in the same period last year.

Trendlyne data shows that ITC has declared 32 dividends since July 3, 2001. In the past 12 months, ITC has declared an equity dividend amounting to ₹14.35 per share. At the current share price of ₹307.40, ITC's dividend yield is 4.67%.

ITC share price has fallen 6% in three months and has dropped over 15% on a year-to-date (YTD) basis. The stock has declined 25% in six months and has plunged 29% in one year.

Agri business is expected to decline marginally due to weak exports impacted by the US-Iran war in West Asia. Paperboards revenue is projected to grow ~7% YoY (realization-led) amid challenging operating conditions — driven by the influx of low priced global supplies (including into India), elevated domestic wood prices, and subdued realizations — while EBIT margins are estimated at 9.8%, indicating QoQ improvement. Net-net, ITC’s gross sales and EBITDA growth is expected at 6.5% and 4% YoY.

Kotak Equities estimates ~10% YoY FMCG business revenue growth, factoring in tailwinds from GST rate cuts across ~75% of the portfolio (including noodles, biscuits and snacks). EBIT margin is estimated at 7.5%, up ~120 bps YoY, driven by stable RM prices through February, calibrated pricing actions, portfolio premiumization, and focused cost management, partly offset by commodity volatility in March (edible oil up 10-15% and packaging laminates prices surged).

ITC’s cigarettes segment performance in 4QFY26 was impacted by the transition to the new taxation structure, one-off realization gains in Feb and it does not accurately reflect underlying demand trends. Kotak Institutional Equities estimates cigarette volume and gross sales growth at (-)1% and (+)5% YoY.

Monthly trends were divergent: January witnessed strong trade offtake ahead of price hikes, resulting in robust volume/value growth, marginally better than the 3QFY26 run rate; February was mixed, with 1H benefitting from significantly higher realizations (one-off) and volumes prior to price hikes, while 2H saw weaker primary sales post hikes; and March was weak due to channel stocking in the first two months and a realization decline in RSFT and DSFT (~70% salience), leading to subdued volume/value growth, Kotak Equities said.

Cigarette EBIT growth is estimated at ~3% YoY, with EBIT margins declining ~100 bps YoY, reflecting the sustained impact of higher leaf tobacco costs in 4QFY26 and a weak March, during which price hikes were insufficient to fully protect profitability (a blended ~25% price hike versus ~35% required to offset the tax increase).

The recent tax hike (effective February 2026) led to a stock-up in January, followed by partial price pass-through in Feb–Mar, resulting in negative pricing for the quarter. While ITC has taken sharp price hikes across key cigarette brands ( ₹2–7 per stick; Kings, Gold Flake, Duke, Royal), full pass-through is yet to be realised. Nuvama Institutional Equities forecasts two–three staggered price hikes over the coming months to offset the tax impact.

Elara Securities expects ITC’s net profit in Q4FY26 to rise 7.1% to ₹5,221 crore from ₹4,874.7 crore, YoY, and revenue to grow 4% to ₹17,951 crore from ₹17,248.2 crore, YoY.

ITC’s net profit in Q4FY26 is expected to rise 3.5% to ₹5,047 crore from ₹4,874.7, while revenue is expected to 4.4% to ₹17,999 crore from ₹17,248.2 crore, YoY. EBITDA is seen up 3.3% to ₹6,183 crore from ₹5,986.4 crore, while EBITDA margin may contract by 36 bps to 34.4% from 34.7%, YoY, according to Systematix estimates.

Brokerage firm Systematix expects ITC’s cigarette volume and value growth of 10% and 23% YoY with price hikes taken, while FMCG growth of 8% YoY. Agri business is expected to grow around 6% YoY on a high base and paper business growth is estimated to remain moderate at 3% YoY. ITC’s margins are expected to contract YoY and QoQ on sharp increase in cigarette taxation (BED) during the quarter not met by pricing, offset by stabilizing costs of leaf tobacco.

FMCG business expected to post healthy 11% revenue growth, with a 37% EBIT growth and 140 bps margin expansion. The agri business is seen growing 12% and the paper business expected to see 5% revenue growth.