ITC Q3 FY26: Profit ₹5,018 Cr, Dividend ₹6.5

Results snapshot and why it matters

ITC Ltd announced its unaudited financial results for the quarter ended December 31, 2025 (Q3 FY25–26) on January 29, 2026, through stock exchange filings. The company reported consolidated net profit from continuing operations of ₹5,018.45 crore. Consolidated total income was stated as ₹22,080.68 crore in the results update provided. The data also includes a consolidated highlights table that puts total income for the quarter at ₹22,280.68 crore. Investors tracked the print for signs of stability in core FMCG performance, even as profitability showed a year-on-year decline.

Board decision: interim dividend and record date

Alongside the quarterly results, ITC’s Board of Directors declared an interim dividend of ₹6.50 per ordinary share for FY25–26. The record date was fixed as February 4, 2026. The dividend declaration is part of the formal exchange filing details shared with the results announcement. The update did not include a payout ratio or total dividend outgo figure.

Consolidated financial highlights: Q3 vs Q2 vs last year

On a consolidated basis, revenue from operations in Q3 FY25–26 was reported at ₹21,706.64 crore, up from ₹20,349.96 crore in Q2 FY25–26 and ₹21,255.86 crore in Q3 FY24–25. Other income was ₹574.04 crore versus ₹595.86 crore in Q2 and ₹584.40 crore a year ago. Total expenses rose to ₹15,274.41 crore from ₹14,413.86 crore in the previous quarter and ₹15,016.02 crore in the year-ago quarter. Profit after tax (PAT) stood at ₹5,018.45 crore, marginally higher than ₹5,013.18 crore in Q2, but lower than ₹5,186.55 crore in Q3 FY24–25.

Table: ITC consolidated key numbers (unaudited)

Segment revenue mix: cigarettes and FMCG-others in focus

The segment table shows FMCG (cigarettes) revenue of ₹9,681.08 crore in Q3 FY25–26 versus ₹8,944.83 crore in Q2 and ₹9,414.34 crore in Q3 FY24–25. FMCG (others) revenue came in at ₹6,109.58 crore compared with ₹5,427.70 crore in the previous quarter and ₹6,059.12 crore a year ago. Total FMCG segment revenue was ₹15,790.66 crore in Q3 FY25–26 versus ₹14,372.53 crore in Q2 and ₹15,473.46 crore in Q3 FY24–25. Agri business revenue was reported at ₹3,859.04 crore for the quarter, while paperboards, paper and packaging stood at ₹2,203.03 crore.

Table: segment revenue (as provided)

Standalone metrics also highlighted in the update

The provided data also includes standalone performance markers for the December 2025 quarter. ITC’s standalone net revenue (revenue from operations excluding excise duty) was ₹18,017.14 crore versus ₹17,052.82 crore in Q3 FY25, described as a 5.65% year-on-year core business growth. Standalone EBITDA grew 7.6% year-on-year to ₹6,737 crore, with EBITDA margin at 34.81% versus 34.18% a year ago. Standalone net profit was ₹5,088.83 crore, down 9.7% year-on-year against ₹5,638.25 crore. Standalone EPS for the quarter was stated at ₹4.06.

Tax and volume narrative around cigarettes

The update noted that cigarette business momentum was supported by volume-led growth, and also carried a caution on an “unprecedented increase” in cigarette taxes effective February 1, 2026. It warned that such a move could provide further impetus to the illicit cigarette trade. Separately, the preview section referenced concerns among analysts around pricing, input costs, and the possibility of a cigarette tax revision. These elements framed the market’s attention on management commentary beyond the headline profit number.

Market reaction and longer-term stock context

In the market update included, ITC shares ended 0.73% lower at ₹318.80 apiece on the NSE. The stock was noted to have slipped over 26% in the past one year. Over the same period, the Nifty 50 index was described as having risen close to 11%. The divergence highlights the sensitivity around earnings consistency, segment mix, and policy risk in the cigarettes category.

What brokerages were watching ahead of the results

The preview sections in the provided text pointed to expectations of modest revenue gains supported by healthier cigarette volumes and margin improvement, but with variation in profit forecasts. Analysts tracked cigarette volume growth assumptions in the 5-7% band and monitored leaf tobacco and other inputs for margin effects. The notes also highlighted that volumes had moderated from FY23 highs to low single digits in FY25, with improving momentum into FY26. Another preview line flagged attention on commentary following the excise duty increase effective February 1, 2026.

Conclusion

ITC’s Q3 FY25–26 filing showed consolidated PAT of ₹5,018.45 crore and an interim dividend of ₹6.50 per share with a February 4, 2026 record date. Consolidated revenue from operations rose sequentially, while year-on-year profit declined. Segment disclosures continued to underline the weight of cigarettes and the scale-up in FMCG-others, alongside a sizeable agri business contribution. The next key checkpoint for investors, based on the update, remains how the company navigates the post-February 1, 2026 tax backdrop for cigarettes and how that affects volumes and trade dynamics.