ITC Posts 74% Decline in Q4 Net Profit to Rs 5,113 Crore Amid Cigarette Tax Hike Pressures

ITC Ltd Reports 74% Decline in Standalone Net Profit for March 2026 Quarter

ITC Ltd, a diversified entity and maker of Gold Flake cigarettes, reported a significant decline in its standalone net profit for the March 2026 quarter. The company's net profit stood at Rs 5113.36 crore, a 74 percent decline compared to the same period a year ago.

The decline in net profit can be attributed to higher taxes that have weighed on margins in the company's core cigarettes business. In the January-March period last year, ITC had posted a net profit of Rs 19,562 crore. Despite this decline, the company remains optimistic about India's macro-economic outlook, citing its resilience.

However, the company has cautioned that consumer sentiment can be impacted amid global geopolitical headwinds. The ongoing West Asia conflict has heightened concerns around India's energy security and imported inflation. A prolonged disruption, coupled with emerging El Niño conditions that could weaken monsoons and intensify heatwaves, poses risks to growth, inflation, and the Current Account.

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The company reported a significant increase in cigarette revenue for the quarter, with sales rising to Rs 11,066 crore, a 31.8 percent increase compared to the same period last year. The company has attributed this growth to strategic pricing actions to mitigate the impact of unprecedented tax increases.

In addition to its core cigarettes business, ITC's "Other FMCG business" reported a 15 percent year-on-year hike in revenue to Rs 6,304 crore, while profit from the segment rose 51 percent in the same period. The company's new age acquisitions, including 24 Mantra Organic Foods, Yoga Bar, Mother Sparsh, and Prasuma & Meatigo, have also delivered robust growth of 60 percent during the year.

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The company has recommended a final dividend of Rs 8 per equity share for the financial year ended 31st March, 2026. The final dividend, if declared, will be paid between Friday, 24th July, 2026 and Wednesday, 29th July, 2026. The company has fixed Wednesday, 27th May, 2026, as the record date for the purpose of determining the eligibility of shareholders for the said dividend.

Shares of ITC settled marginally higher at Rs 307.65 per share on the NSE, up 0.033 percent.