ITC Q3 net profit marginally up at Rs 5,018 crore

Diversified entity ITC Ltd on Thursday reported a marginal increase in its consolidated profit to Rs 5,018.45 crore for the third quarter of FY26, mainly on account of the impact from the implementation of the new labour codes. In the December quarter, ITCs revenue from the total FMCG business, which also includes cigarettes, climbed 9.86 per cent to Rs 15,790.66 crore.

Diversified entity ITC Ltd on Thursday reported a marginal increase in its consolidated profit to Rs 5,018.45 crore for the third quarter of FY26, mainly on account of the impact from the implementation of the new labour codes. It had posted a consolidated profit of Rs 5,013.18 crore in the October-December quarter a year ago, according to a regulatory filing by the Kolkata-headquartered company. ITC has reported exceptional items (net loss) totalling Rs 354.58 crore in the December quarter. This is due to an increase in liability of gratuity and compensated absences, primarily arising due to a change in the definition of wages pursuant to notifications issued by the government after implementing the new labour code from November 21, 2025. Its profit before exceptional items and tax was Rs 7,108.66 crore, up 8.76 per cent in the December quarter of FY26. It stood at Rs 6,536.06 crore in the corresponding quarter of the last fiscal. ITC's revenue from sales of products increased 7.13 per cent to Rs 21,577.58 crore in the December 2025 quarter. This was ''driven by double-digit revenue growth in FMCG and sustained momentum in the cigarette business'', ITC said in its earnings statement. Benign inflation, resilient rural demand and acceleration in credit growth were some of the key positives during the quarter, it added. Its revenue from operations increased 6.66 per cent to Rs 21,706.64 crore. It was 20,349.96 crore a year ago. The total income of ITC, which includes other income, during the quarter inched up 6.37 per cent at Rs 22,280.68 crore in Q3 of FY26. In the December quarter, ITC's revenue from the total FMCG business, which also includes cigarettes, climbed 9.86 per cent to Rs 15,790.66 crore. ITC's revenue from the cigarette business grew 8.23 per cent to Rs 9,681.08 crore in the third quarter of FY26. It sustained a volume-led growth momentum in the said business. It has a ''strong performance in differentiated and premium offerings, leveraging mainstream trademarks and innovation'', ITC said, adding that it continued to focus on strategic portfolio and market interventions to reinforce market standing and counter illicit trade. ITC's revenue from the 'FMCG Others' segment rose 12.56 per cent to Rs 6,109.58 crore. FMCG other business includes branded packaged foods businesses in staples, meals, snacks, dairy & beverages, biscuits & cakes, chocolates, coffee & confectionery, education and stationery products, personal care products, safety matches and agarbattis. This segment has a ''broad-based growth across categories, viz Staples, Biscuits, Noodles, Dairy, Premium Personal wash, Homecare & Agarbattis''. Besides, it reported a strong performance in the premium portfolio and NewGen channels. Digital-first and Organic portfolio sustains its high growth trajectory, up 60 per cent year-on-year, ITC said. Moreover, ''calibrated pricing actions, premiumisation, and focused cost management initiatives drive'' expanded margins of the segment, it added. Its revenue from the agri business rose 6.42 per cent to Rs 3,859.04 crore. This growth was ''led by Value Added Agri products & Leaf Tobacco'', ITC said. ITC's revenue from paperboards, paper & packaging increased 2.71 per cent to Rs 2,203.03 crore. Its performance includes the impact of the planned shutdown for maintenance of the High Pressure Recovery Boiler & Paper machines. The company has continued improvement in operating performance in the segment, which reported an ''underlying profits up 19 per cent quarter-on-quarter and 11 per cent year-on-year''. Its revenue from 'others', which include IT services, ITC Grand Central Hotel, Mumbai and FoodTech, surged 16.26 per cent to Rs 1,303.76 crore. Meanwhile, in a separate filing, ITC said its board, in a meeting held on Thursday, declared an interim dividend of 650 per cent, which is Rs 6.50 per ordinary share of Re 1 each for the financial year ending on March 31, 2026. Over the outlook, it said: ''Reduction in interest rates and liquidity support by the RBI, lower inflation, income tax cuts, along with front loading of government expenditure, reduction in GST rates across a wide range of products and the India-EU free trade agreement augur well for economic growth''. Shares of ITC Ltd on Thursday settled at Rs 318.65, down 0.81 per cent from the previous close.

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