Broadly in line with street estimates, diversified conglomerate ITC reported a 4.89 per cent year-on-year increase in its standalone net profit in Q4FY26 to ₹5,113.36 crore, as increased GST rate along with a steep hike in excise duties, and West Asia conflict impacted profitability of its cigarette and agri-business segments, respectively.
The Kolkata-headquartered conglomerate had posted a net profit of ₹4,874.93 crore in Q4FY25 on the basis of continued operations. Notably, the conglomerate’s hotel business was demerged into ITC Hotels effective January 1, 2025.
Revenue from operations during Q4 grew 17.30 per cent year on year to ₹21,694.67 crore (₹18,494.55 crore), backed by strong performances from cigarette and non-cigarette FMCG segments.
ITC, in a statement, said it posted a strong performance during Q4FY26 amid supply chain disruptions and logistical challenges due to the ongoing West Asia conflict. Overall EBITDA grew 7.3 per cent.
Cigarette biz
Revenue from its cigarettes business rose 31.74 per cent to ₹11,066.02 crore in Q4, while operating profit from the segment increased 7.23 per cent y to ₹5,488.16 crore, according to the stock exchange filing. The country’s largest cigarette maker said an increase in GST rate from 28 per cent of transaction value to 40 per cent of retail sale price along with a steep hike in excise duties effective February 1, 2026, upon phasing out of Compensation Cess, resulted in an unprecedented increase in tax incidence on cigarettes.
The extremely-stringent regulations along with the discriminatory and steep taxation on cigarettes have had negative, albeit unintended, repercussions, the company said, adding it has adopted a strategic approach to mitigate the impact of the unprecedented increase in tax incidence and sustain its market standing. “This includes, staggered and agile pricing actions to minimise the risk of a significant shift of volumes to illicit trade and consequent loss of revenue to the exchequer, and re-architecting the product portfolio by leveraging a diverse range of powerful trademarks,” it said.
Non-cigarette FMCG biz
During Q4, the non-cigarette FMCG business registered a 14.72 per cent growth in revenue to ₹6,303.73 crore, while the segment posted a 50.98 cent increase in operating profit to ₹520.74 crore. The segment’s EBITDA margin was up around 200 basis points to 11 per cent (excluding 24 Mantra Organic).
Notably, the non-cigarette FMCG business’ contribution to the conglomerate’s gross revenue stood at 29.37 per cent ( 30.08 per cent). This segment’s contribution to profit before tax rose to 7.78 per cent (5.37 per cent).
ITC said the segment witnessed a sharp surge in prices of key input materials (edible oil, soap noodles, packaging inputs etc.) towards Q4-end amid West Asia conflict. It proactively mitigated it through focused market interventions, supply chain agility, cost management and judicious pricing actions.
Agri business
The company’s agri business witnessed a 15.74 per cent fall in revenue to ₹3,074.86 crore, whereas the segment registered a 29.63 per cent decline in operating profit to ₹179.48 crore. The performance was hit due to deferral of sales amid the West Asia conflict.
“The agri segment witnessed significant disruption during FY26, triggered by sweeping tariff measures imposed by the US, and climate-related supply uncertainties in key producing regions. Supply chain disruptions and logistical challenges, following the West Asia conflict towards the end of the year, led to deferrals of call-offs by certain customers,” the company said, adding that on the domestic front, the government imposed stock limits and export restrictions on key agri-commodities to ensure food security limiting the opportunities for the business.
Paper biz segment
The paperboards, paper & packaging business of the conglomerate witnessed a 1.82 per cent growth in revenue to ₹2,227.52 crore. The business posted a 21.22 per cent increase in its operating profit to ₹245.15 crore.
The company said partial relief to the industry with the imposition of Minimum Import Price (MIP) on Virgin Multi-layer Paperboard effective August 22, 2025, led to progressive decline in low-priced imports. Wood prices witnessed moderation amid improved availability. Also, strong growth in the Specialty Papers segment was led by Décor paper.
ITC’s board recommended a final dividend of ₹8 per share. Including interim dividend of ₹6.50 per share paid on February 27, 2026, total dividend for FY26 amounted to ₹14.50 per share.