The company says that the changes in GST and excise duty rates announced recently, have led to an unprecedented increase in tax incidence on cigarettes
Marking a marginal uptick, diversified entity ITC has posted the consolidated profit of Rs 5,018.45 crore in the third quarter of the current financial year, mainly on account of the impact from the implementation of new labour codes.
The company’s profit after tax before exceptional items stood at Rs 5,284 crore in Q3FY26 as compared to Rs 4,810 crore in Q3FY25. “Estimated one-time impact on recognition of past service cost of Rs. 355 crore with respect to increase in liability of gratuity and compensated absences primarily arising due to change in definition of wages pursuant to notification of new labour codes,” it said in a regulatory filing.
At the consolidated level, the company’s gross revenue from the sale of products and services was up 7.1 per cent year-on-year to Rs 21,577.58 crore, driven by double-digit revenue growth in fmcg-others and sustained momentum in cigarettes business. The company saw broad-based growth across categories such as staples, biscuits, noodles, dairy, premium personal wash, homecare and agarbattis.
The company registered sustained volume-led growth momentum in cigarettes business, with net segment revenue growing 7.9 per cent YoY. The company said that leaf tobacco consumption cost remains elevated, moderation in procurement prices witnessed in current crop cycle.
“The changes in GST and excise duty rates announced recently, have led to an unprecedented increase in tax incidence on cigarettes. Such a steep increase will provide further impetus to illicit trade and cause immense hardship and loss to millions of farmers, MSMEs, retailers, local value chains nurtured by the industry and the Exchequer,” ITC said in a regulatory filing.
The company saw continued improvement in operating performance of paper segment as underlying profits were up 11 per cent YoY. Performance includes impact of planned shutdown for maintenance of high pressure recovery boiler and paper machines.
As per the exchange filing, ‘Aashirvaad’ Atta posted strong growth during the quarter. Value-added variants and staples adjacencies continue to scale up and now comprise over 16 per cent of Aashirvaad staples portfolio. YiPPee! noodles witnessed strong growth and introduced differentiated offerings during the quarter to augment its product range.
Interim Dividend
The board of directors of the company declared interim dividend of Rs 6.50 per ordinary share of Rs 1 each for the financial year ending on 31 March 2026. Such dividend will be paid between 26 February 2026 and 28 February 2026 to those members of the company entitled thereto. The board also fixed 4 February 2026 as the record date for the purpose of determining entitlement of the members for such interim dividend.
The Board of the company has recommended for the approval of the members, the appointment of Navin Agarwal as a Non-executive Director of the company for a period of three years with effect from 1 April 2026. Agarwal will represent the Specified Undertaking of the Unit Trust of India (SUUTI).
Alok Pande, Non-executive Director, representing SUUTI, has tendered his resignation from the Board of Directors of the Company with effect from 1 April 2026.
