ITC has announced a final dividend of Rs 8 per share for FY26, giving another reason for investors to keep an eye on the FMCG giant.
The company has fixed May 27 as the record date to identify shareholders eligible for the dividend payout.
However, the dividend will only be confirmed after shareholder approval at ITC’s 115th Annual General Meeting (AGM), which is scheduled for July 23.
If approved, the payment will be made between July 24 and July 29.
ITC’s Total Dividend for FY26 Reaches Rs 14.50
Including the interim dividend of Rs 6.50 per share announced earlier in January, ITC’s total dividend payout for FY26 now stands at Rs 14.50 per share.
The company has built a strong reputation for rewarding shareholders regularly.
Since 2002, ITC has declared 30 dividends, making it one of the more consistent dividend-paying companies in the market.
At present, ITC’s dividend yield stands at around 4.65%, which continues to attract long-term investors looking for stable returns.
Interestingly, the highest dividend ever paid by ITC was Rs 31 per share back in 2005.
ITC’s Q4 Profit Drops Sharply
ITC reported a sharp 73% fall in net profit during Q4FY26 compared to the same period last year.
Despite the yearly decline, the company still managed a 9.2% rise in profit on a sequential basis over Q3FY26.
On the revenue front, the company performed better.
Revenue from operations increased nearly 17% year-on-year to Rs 23,821.48 crore in Q4FY26, compared to Rs 20,376.36 crore in Q4FY25.
FMCG Business Continues to Drive Growth
ITC’s FMCG-Others segment remained the company’s biggest growth engine during the quarter.
Revenue from the segment rose 15% year-on-year, while profits jumped an impressive 51%.
The EBITDA margin also improved by nearly 200 basis points to 11%, excluding Sresta.
This shows that ITC’s non-cigarette business continues to strengthen and contribute more significantly to overall growth.
ITC Raises Concern Over Higher Cigarette Taxes
The company also highlighted concerns over the recent increase in cigarette taxes that came into effect from February 1.
According to ITC, higher taxes on legal cigarette sales are encouraging the growth of illegal cigarette trade in India.
The company estimates that illicit cigarette trade causes an annual tax loss of nearly Rs 23,000 crore to the government and now accounts for almost one-third of the legal industry.
ITC Share Price Under Pressure
Despite the dividend announcement, ITC shares have faced pressure in the market recently.
The stock has declined 5.35% over the last three months and is down nearly 15.87% so far this year.
Investors are now closely watching whether the company’s FMCG growth can help improve overall market sentiment in the coming quarters.
