FMCG major ITC clocks 72.4 pc drop in its Q4 net profit
Mumbai, May 21
FMCG major ITC on Thursday reported a sharp 72.4 per cent year-on-year decline in consolidated net profit for the fourth quarter of financial year 2026, mainly due to a high base effect from a one-time gain recorded in the corresponding period last financial year.
The company posted a consolidated profit of Rs 5,469.74 crore for the quarter ended March 2026, compared with Rs 19,807.88 crore reported in the same quarter of the previous financial year (Q4 FY25), according to its stock exchange filing.
ITC said the steep decline in profit was largely because the company had recorded an exceptional one-time gain of Rs 15,179 crore in Q4 FY25 following the demerger of its hotels business.
On a sequential basis, however, the company reported an improvement in profitability.
Consolidated net profit rose around 9 per cent quarter-on-quarter from Rs 5,018.45 crore posted in the December quarter of FY26.
The company's consolidated revenue from operations during the March quarter stood at Rs 23,821.48 crore, registering a growth of nearly 17 per cent year-on-year.
Revenue also increased around 10 per cent sequentially from Rs 21,706.64 crore reported in Q3 FY26.
In the corresponding quarter of the previous financial year, ITC had reported revenue of Rs 20,376.36 crore.
For the full financial year 2026, ITC's consolidated profit declined 40 per cent to Rs 21,018.15 crore, compared with Rs 35,052.48 crore in FY25.
Despite the drop in annual profit, the company reported healthy growth in revenue.
Consolidated revenue from operations for FY26 rose 10.2 per cent year-on-year to Rs 89,913.33 crore from Rs 81,612.78 crore in the previous financial year.
ITC also said its consolidated EBITDA increased 6.9 per cent year-on-year during the March quarter, while annual EBITDA growth stood at 5.4 per cent for FY26.
Shares of the firm closed almost flat at Rs 307.65 on the National Stock Exchange ahead of the statement.
— IANS
Reader Comments
Yaar, headline pe mat jao. Read the fine print! ITC's actual business is improving - revenue up 10% sequentially, annual revenue crossed 89k crore. Hotels business demerger was a one-time thing. For long-term investors, this is still a solid bet. 📈
The headline is misleading if you don't dig deeper. The 72% drop is entirely due to that Rs 15,179 crore exceptional gain last year. On a like-for-like basis, net profit actually grew 9% sequentially. Revenue growth of 10.2% for FY26 is also impressive. ITC remains a defensive play in times of inflation.
ITC's stock barely moved after this - market already priced it in. The FMCG segment is doing well, but I wish they would focus more on reducing debt or giving better dividends. Annual profit drop of 40% is concerning even if it's one-time. Need to watch Q1 FY27 results closely.
Abey, these companies always play with numbers! 😂 One quarter they show huge profit due to demerger, next quarter they show drop. Common investor ko kuch samajh nahi aata. But revenue growth is genuine - 17% YoY is good. Let's see if Aashirvaad and Sunfeast continue to grow at this pace.
As an investor, I'm not panicking. ITC's core business (cigarettes, FMCG, paperboards) is stable. The hotels demerger was a strategic move, and the one-time gain was always going to skew comparatives
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