ITC Posts Strong Q3 Performance; Declares ₹6.50 Interim Dividend Amid FMCG Profit Surge

By Dr. Indukant Dixit

KOLKATA, Feb 08 (CMC) Diversified conglomerate ITC Limited has reported a resilient performance for the third quarter ended December 31, 2025, buoyed by a significant surge in its non-cigarette FMCG business and steady growth in its cigarette segment. The company’s Board of Directors has recommended an interim dividend of ₹6.50 per ordinary share for the financial year ending March 31, 2026.

On a consolidated basis, ITC’s gross revenue grew by 7.1% year-on-year (YoY), supported by a robust 12.6% growth in the “FMCG-Others” segment. Consolidated Profit After Tax (PAT), before exceptional items, rose by 9.9% YoY. On a standalone basis, the company’s EBITDA margin expanded by 50 basis points to 35.1%, reflecting focused cost management and premiumization efforts.

The “FMCG-Others” segment, which includes brands like Aashirvaad, Sunfeast, and Bingo!, emerged as the star performer. The segment’s Profit Before Interest and Tax (PBIT) saw a staggering 42% YoY increase. This was driven by a 60% growth in the Digital-first and Organic portfolio, including brands like Yogabar and Mother Sparsh.

The Cigarettes business maintained its volume-led growth momentum, with net segment revenue up 7.9% YoY. However, the company cautioned about an “unprecedented increase” in cigarette taxes effective February 1, 2026. ITC noted that punitive taxation in the past has fueled the illicit trade, which now accounts for nearly one-third of the legal industry.

The Agri-Business segment saw a 6.3% revenue growth, led by value-added products and leaf tobacco exports. Meanwhile, the Paperboards, Paper, and Packaging segment showed signs of recovery with underlying profits up 11% YoY, despite challenges from low-priced imports.

The declared interim dividend of ₹6.50 will be paid between February 26 and February 28, 2026. The company has fixed February 4, 2026, as the Record Date to determine shareholder eligibility.

In accordance with the Income Tax Act, 1961, ITC will deduct Tax at Source (TDS) at the following rates:

Resident Shareholders-10% for those who have furnished a valid PAN; 20% for those without. No TDS applies to individuals if the total dividend does not exceed ₹10,000.

Non-Resident Shareholders-20% (plus surcharge and cess) or the applicable Tax Treaty Rate.

Shareholders are required to submit tax exemption forms (Form 15G/15H) or treaty-related documents via the company’s portal by February 15, 2026, to avail of lower tax rates.