Shares of ITC Ltd are likely to remain in focus on May 22 after the diversified conglomerate reported a 5% year-on-year rise in consolidated net profit for the March quarter of FY26, supported by strong performance in its FMCG and paper businesses.
The company posted a consolidated net profit of ₹5,113 crore for the quarter ended March 2026, compared with ₹4,875 crore in the corresponding quarter last year. The profit figure was higher than the CNBC-TV18 poll estimate of ₹4,995 crore.
Revenue from operations, however, declined 7% year-on-year to ₹16,050 crore from ₹17,248.7 crore a year earlier and came below the CNBC-TV18 estimate of ₹18,275 crore.
EBITDA during the quarter increased 7.2% year-on-year to ₹6,426 crore from ₹5,994 crore in the year-ago period. EBITDA also exceeded the CNBC-TV18 estimate of ₹6,275 crore. EBITDA margin expanded sharply to 40% from 34.8% a year ago, aided by improved segmental performance and cost management measures.
On a standalone basis, ITC said it delivered a resilient performance despite supply chain disruptions and logistical challenges linked to the ongoing West Asia conflict.
The company’s FMCG business recorded robust revenue growth of 15% year-on-year during the quarter. ITC said strong growth was witnessed across categories including staples, biscuits, snacks, frozen snacks, noodles, dairy products, premium personal wash, home care products, and agarbatti.
ITC’s FMCG-Others segment reported a 15% rise in segment revenue, while segment results surged 51% year-on-year. Excluding Sresta Natural Bioproducts, segment revenue growth stood at 14%. Segment EBITDA margin expanded by nearly 200 basis points year-on-year to 11%.
The company added that its digital-first and organic products portfolio grew around 60% year-on-year, with annual recurring revenue crossing ₹1,350 crore.
The paperboards and paper segment also showed improvement during the quarter. ITC said segment profits increased 21% year-on-year and 24% sequentially, supported by moderation in wood prices and a decline in low-priced imports following the imposition of Minimum Import Price norms on virgin multi-layer paperboard imports from August 2025.
The cigarettes business reported 8.2% year-on-year growth in net segment revenue for the full year, while segment results rose 5.1%. The company also highlighted the impact of increased taxes on cigarettes effective February 1, 2026, and the transition to the new tax structure during the quarter.
ITC said its agri business performance remained impacted by geopolitical disruptions, timing differences in sales and subdued exports amid the ongoing West Asia conflict.
For the full financial year FY26, consolidated gross revenue increased 10.3% year-on-year, while EBITDA rose 5.4%. EBITDA excluding the paper business grew 6% during the year.
The company also informed exchanges that the amalgamation of Wimco Ltd and Sresta Natural Bioproducts Private Ltd has been implemented from their respective appointed dates.
Meanwhile, ITC’s board recommended a final dividend of ₹8 per ordinary share for FY26, subject to shareholder approval at the company’s 115th Annual General Meeting scheduled for July 23, 2026.
The company had earlier declared an interim dividend of ₹6.50 per share in January 2026. With the final dividend recommendation, total dividend for FY26 stands at ₹14.50 per share.
ITC has fixed May 27, 2026, as the record date for determining shareholder eligibility for the final dividend. If approved, the dividend will be paid between July 24 and July 29, 2026.
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