Diversified conglomerate ITC Ltd reported a resilient performance for the December quarter (Q3 FY26), delivering steady profits, robust revenue growth, and healthy margin expansion, keeping the stock firmly in focus for investors.
The company posted a consolidated net profit of ₹5,018 crore, broadly in line with ₹5,013 crore recorded in the same quarter last year, highlighting stable earnings despite a challenging macro environment. On a sequential basis, profit dipped marginally by 3.3% from ₹5,187 crore in the September quarter.
Revenue from operations rose 6.7% year-on-year (YoY) to ₹21,706 crore, reflecting sustained momentum across core businesses. At the operating level, EBITDA grew 8.17% YoY to ₹6,882 crore, while margins expanded by 50 basis points to 31.7%, underlining improving operating efficiency.
ITC’s FMCG business delivered a strong double-digit revenue growth of around 11% YoY, accompanied by a 145-basis point expansion in EBITDA margins. Growth was broad-based across staples, biscuits, noodles, dairy, and personal care categories, while its premium and digital-first portfolio continued to scale up rapidly, reinforcing the company’s diversification strategy.
The cigarettes segment maintained steady volume-led growth, with net segment revenue rising 7.9% YoY, supported by premiumisation and continuous product innovation. However, elevated leaf tobacco costs continued to exert some pressure on margins.
The Agri business reported a 6.3% YoY increase in segment revenue, driven by strong performance in value-added agri products, especially aqua and coffee, along with improved leaf tobacco exports. Meanwhile, revenue from the Paperboards, Paper & Packaging segment declined 3% YoY to ₹2,203 crore, reflecting softer demand conditions. Adding to investor optimism, ITC announced a dividend of ₹6.5 per share, reinforcing its track record as a consistent dividend-paying stock. ITC witnessed a sharp fall today ahead of the Q3 result announcement for the financial year 2025-26. The stock closed at Rs. 318.60. Share of ITC has come under pressure this year as the stock market reacted sharply to the excise duty hike on cigarettes, effective from February 1, 2026, which will be charged on top of the existing 40 per cent GST. The stock extended 2025 losses and tumbled nearly 10 per cent on the very first trading session of the New Year. Overall the stock fell by 22% in the last six months. The stock is likely to remain in focus tomorrow after a strong Q3 result. In the current level ₹325–₹320 zone is a key support area where prices are currently attempting to stabilise. A sustained break below this zone could lead to further downside movement. Conversely, the previous breakdown level near ₹360–₹365 is likely to act as strong resistance.