The dividend payout to BAT dipped 8 per cent on a year-on-year (YoY) basis to Rs 3,896 crore, as per the company’s latest annual report
Marking a healthy improvement, ITC expanded its business with its largest shareholder, British American Tobacco (BAT), by 10 per cent in the last financial year (FY26). However, the dividend payout to BAT dipped 8 per cent on a year-on-year (YoY) basis to Rs 3,896 crore, as per the company’s latest annual report.
ITC’s 22.9 per cent stake is held by BAT through its three entities, including Tobacco Manufacturers (India), Myddleton Investment Company and Rothmans International Enterprises. ITC sold goods worth Rs 1587 crore to British American Tobacco (GLP), the annual report added.
However, the dividend payout to Tobacco Manufacturers (India) dipped to Rs 3,198 crore in FY26 from Rs 3,558 crore in FY25. Similarly, Myddleton Investment Company received a dividend of Rs 698 crore, compared to Rs 681 crore in FY25. ITC did not mention the dividend payout details for Rothmans International Enterprises.
The reports noted that the decline in dividend income of the two entities is due to a reduction in their shareholding in ITC. TMI had a 17.79 per cent stake in ITC, while Myddleton Investment Company had a 3.88 per cent stake as of March 2026. Rothmans International Enterprise has a 1.28 per cent stake. TMI has divested its stake in the Indian company over the last two years. The company earlier had a 20.32 per cent stake in December 2024, while it had an even higher stake (24.01 per cent) in December 2022, as per the reports.
Broader FMCG Play
Digitally enabled sales, together with Modern Trade (MT), now account for 34 per cent of ITC’s fast-moving consumer goods (FMCG) portfolio, highlighting the company’s growing reliance on digital commerce and omnichannel distribution as India’s retail landscape undergoes rapid transformation.
In its annual report, ITC said the rapid expansion of MT, ecommerce and quick commerce, coupled with the emergence of new retail players, continues to redefine traditional routes-to-market. To capitalise on these shifts, the company’s Trade Marketing and Distribution (TM&D) business is strengthening omnichannel capabilities, deepening customer partnerships and building agile supply chains to improve execution and operational efficiencies.
