FMCG major, ITC is going to announce its Q4FY26 results today. ITC is in focus as the company in its regulatory filing said that the company will also announce final dividend for FY26 in its board meeting tomorrow.

“A meeting of the Board of Directors of the Company has been convened for Thursday, May 21, to consider and approve the audited standalone and consolidated financial results of the Company, along with the segment-wise revenue, results, assets and liabilities for the quarter and twelve months ended March 31, the balance sheet as on that date, the statement of cash flows for the financial year ended on that date, and notes thereto,” the company said in its regulatory filing.

ITC Dividend announcement in focus

The company had announced an interim dividend of Rs 6.50 per share in Q3FY26.  So far, ITC has declared 30 dividends since 2002. The company has a track record of paying  consistent dividends and the company’s current dividend yield stands at 4.65%.

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The highest dividend paid by ITC was in 2005, which was Rs 31 per share.

ITC may raise cigarette prices by 17% in May

ITC is also in focus as the company is reportedly expected to implement approximately 17% price hike across cigarette segments in May to offset higher excise duties and rising cost. The increase is likely to be broad-based, spanning both value and premium categories. 

Anand Rathi noted that, while this could support margin stability, it may lead to short-term volume pressure and potential downtrading. 

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“A potential ~17% price hike reinforces ITC’s strong pricing power in a highly regulated category, enabling it to largely pass on excise-led cost inflation and protect margins. While near-term volumes may remain under pressure especially in premium segments. However, ongoing regulatory and tax risks and risks of downtrading to lower priced alternatives remain key factors for valuation rerating,” Anand Rathi said.

New excise duty on cigarettes 

India announced a new excise duty structure on cigarettes effective February 1, under the Central Excise (Amendment) Bill 2025. The duty ranges from Rs 2,050 to Rs 8,500 per 1,000 sticks depending on cigarette length and will be levied in addition to the existing 40% GST announced in the Budget 2026.

ITC Q4FY26 – Key focus

Given the sharp 40% plus surge in crude oil prices between February 28 to now and the resultant fuel price hike would be in focus too. The impact of the higher input cost and its impact on prices and margin would remain a key monitorable. 

ITC Q3FY26– A recap

In its Q3FY26, ITC reported a consolidated net profit of Rs 4,931 crore, largely flat compared with Rs 4,935 crore posted in Q3FY25. revenue from operations stood at Rs 21,707 crore in Q3FY26, marking an increase of nearly 7% from Rs 20,350 crore reported in Q3FY25.

ITC share price

The share price of ITC has declined 5.95% in last three months. The stock fell 15.5% so far this year.