ITC Q3 FY26 Earnings Results Out: Profit Falls on One-Time Costs, Revenue Sees Steady Growth

As per ITC Q3 FY26 earnings results, the diversified conglomerate reported steady growth in revenue during the December quarter, while net profit declined due to a one-time cost related to labour reforms.

Profit Impacted By One-Time Labour Cost

For the quarter ended December 2025, ITC posted a standalone net profit of ₹5,088.83 crore, a 6.1% year-on-year decline compared to ₹5,421.36 crore in the same quarter last year. The fall in profit was mainly due to a one-time expense of ₹273.83 crore arising from the implementation of new labour codes.

Revenue And Operating Performance

Despite the pressure on profits, ITC reported healthy growth in its topline. Revenue from operations rose 5.8% YoY to ₹19,359.46 crore in Q3 FY26.

The company’s EBITDA increased 7.6% YoY to ₹6,271 crore, reflecting stable operating performance across its key businesses.

Segment-Wise Revenue Growth

ITC reported growth across most of its operating segments during the quarter.

The cigarettes business remained a key contributor, reporting an 8% YoY increase in revenue. The FMCG (non-cigarettes) segment delivered strong double-digit growth, supported by demand across food and personal care categories.

Growth in FMCG was driven by staples, biscuits, noodles, dairy products, premium personal care, home care and agarbattis. The agri business also recorded steady growth, while paper and packaging saw modest improvement.

Interim Dividend And ITC Share Price Movement

Along with the results, ITC announced an interim dividend of ₹6.50 per share. The record date is 4 February 2026, and the dividend will be paid between 26 February and 28 February 2026.

Ahead of the earnings announcement, ITC shares closed 0.7% lower at ₹318, trading close to their 52-week low of ₹317.85. The stock has declined over 20% this month, largely due to concerns around the new excise duty on cigarettes effective from 1 February 2026.

Read more: From GST To Mutual Funds: Here Is How Key Financial Changes From February 1, 2026, Will Impact You!

Conclusion

ITC’s Q3 FY26 results showed stable revenue growth across its diversified businesses, even as profits were affected by one-time costs and regulatory headwinds. The company’s strong FMCG performance and interim dividend announcement provided some support amid market volatility.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.