ITC closed the March quarter with a performance that reflected both the strength and complexity of its diversified business model. The headline numbers carried two different stories at once: a sharp reported profit decline on a consolidated basis because last year’s base included a large one-time gain from the hotels demerger, and a steadier operating picture when the business is viewed through continuing operations.
For Q4 FY26, ITC reported consolidated gross revenue growth of 17.1% year-on-year, while EBITDA rose 6.9%. On a standalone basis, gross revenue increased 17.5%, with overall EBITDA up 7.3% and profit after tax rising 5% year-on-year. The board also recommended a final dividend of ₹8 per share, taking the total dividend for FY26 to ₹14.50 per share, including the interim dividend already paid. (ITC Portal)
A Quarter Shaped by Resilience
The quarter was not an easy one. ITC had to navigate supply-chain disruptions, logistics challenges linked to the West Asia conflict, input cost pressures, and a major tax change in the cigarette business. Yet the company’s broad portfolio helped it maintain momentum.
The most visible growth came from the FMCG-Others business, where segment revenue rose 15% year-on-year. The company saw broad-based growth across staples, biscuits, snacks, noodles, frozen snacks, dairy, premium personal wash, homecare, agarbatti, and other categories. This part of ITC’s portfolio continues to evolve from being a long-term growth promise into a more meaningful contributor to the company’s overall performance. (ITC Portal)
FMCG Becomes the Bright Spot
ITC’s non-cigarette FMCG business stood out as one of the strongest areas of the quarter. Segment results grew 51% year-on-year, while EBITDA margin improved by around 200 basis points to 11% excluding Sresta. That margin expansion is important because ITC’s FMCG business has historically been watched not just for revenue growth, but for its ability to scale profitably.
Brands across packaged foods, personal care, education and stationery, incense sticks, safety matches, and new-age channels contributed to the momentum. The company’s digital-first and organic portfolio also continued to scale, growing around 60% year-on-year and reaching an annual recurring revenue run-rate of over ₹1,350 crore. (ITC Portal)
Cigarettes Face a Tax Shock
The cigarette business entered a tougher phase during the quarter. A major increase in tax incidence took effect from February 1, 2026, altering the comparison of gross revenue and excise duties with the previous year. This created a transition period for the business, forcing ITC to respond with staggered pricing actions and portfolio adjustments.
For the full year, the cigarette segment still delivered net revenue growth of 8.2% and segment result growth of 5.1%. However, the year ahead may test the business more sharply as the impact of the new tax structure plays out across consumer demand, legal trade, pricing, and illicit competition. (ITC Portal)
Paperboards and Packaging Show Improvement
The paper segment brought some relief to the broader performance. Profits in the paper business grew 21% year-on-year and 24% quarter-on-quarter in Q4. Moderation in wood prices, partial relief from low-priced imports, and better performance in specialty papers supported the improvement.
Packaging and printing also witnessed strong growth during the quarter, led by the cartons portfolio. For a business that has faced import pressure and volatile input conditions, this improvement gave ITC another stabilising lever beyond FMCG and cigarettes. (ITC Portal)
Agri Business Hit by Timing and Geopolitical Disruptions
The agri business had a softer quarter, affected by geopolitical disruptions, timing differences, and a high base. Exports were relatively subdued due to disruptions linked to the West Asia conflict. Still, the full-year picture remained positive, with segment revenue growing 3% and a two-year CAGR of 13%.
The company also saw rapid scale-up in exports of nicotine and nicotine derivative products during the quarter, supported by its Mysuru facility. This suggests that even within a disrupted export environment, ITC is continuing to build newer growth avenues in the agri-linked portfolio. (ITC Portal)
Shareholder Reward Remains Strong
ITC’s dividend announcement added a familiar note of stability. The final dividend of ₹8 per share, together with the interim dividend of ₹6.50 per share, brings the total FY26 dividend to ₹14.50 per share. This is slightly higher than the ₹14.35 per share paid for FY25.
For shareholders, the dividend reinforces ITC’s image as a steady cash-generating company, even as it invests in acquisitions, new categories, digital platforms, and manufacturing infrastructure. (ITC Portal)
The Bigger Picture
ITC’s Q4 earnings were not about a single clean headline. They were about balance. FMCG gained strength, paper improved, agri faced temporary disruptions, cigarettes entered a more difficult tax environment, and consolidated profit comparisons were distorted by last year’s exceptional hotel demerger gain.
The company’s performance shows that ITC is no longer only a cigarette-led profit story, even though cigarettes remain central to earnings. Its future narrative is increasingly tied to how fast the FMCG portfolio can scale, how efficiently margins can improve, and how well the company can manage regulatory and input-cost shocks.
Conclusion
ITC’s Q4 FY26 results present a picture of a company operating through pressure without losing direction. Revenue growth remained healthy, FMCG delivered strong momentum, the paper business improved, and dividends remained generous. At the same time, cigarette taxation, geopolitical disruptions, and commodity inflation remain important watchpoints.
The quarter may not look spectacular at first glance because of the high base created by last year’s exceptional gain, but beneath that accounting effect, ITC’s core operating engine continued to move forward. For investors and market watchers, the key question now is whether the company can sustain FMCG-led growth while protecting profitability in its legacy cigarette business.
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