In a recent announcement, ITC reported a staggering 72.4% decline in its consolidated net profit for the fourth quarter of the financial year 2026 (Q4 FY26), a drop primarily attributed to the high base effect from a significant one-time gain recorded in the same quarter of the previous financial year. The company revealed that its consolidated profit for the quarter ending March 2026 stood at ₹5,469.74 crore, a drastic decrease from the remarkable ₹19,807.88 crore reported during Q4 FY25.
This sharp decline in profit can be traced back to an exceptional one-time gain of ₹15,179 crore that ITC had recognized in Q4 FY25, following the demerger of its hotels business. Despite this considerable drop in profitability, the company showed signs of improvement on a sequential basis, with a 9% increase in consolidated net profit from ₹5,018.45 crore in the preceding December quarter of FY26.
- Consolidated revenue from operations — ITC reported revenue of ₹23,821.48 crore, reflecting nearly 17% year-on-year growth.
- Annual profit decline — For FY26, ITC's consolidated profit fell 40% to ₹21,018.15 crore.
- EBITDA growth — The company saw a 6.9% year-on-year increase in consolidated EBITDA during Q4.
Despite the challenging financial landscape, ITC's consolidated revenue from operations for the entire financial year 2026 rose by 10.2% year-on-year, totaling ₹89,913.33 crore, compared to ₹81,612.78 crore in FY25. This growth in revenue indicates that while profitability has taken a hit, the company's operational strategies are yielding positive results in terms of sales.
On the stock market, shares of ITC traded almost flat at ₹307.65 on the National Stock Exchange prior to the profit announcement, indicating market anticipation regarding the company's financial performance. Moving forward, ITC's management will likely focus on enhancing operational efficiency and exploring new market opportunities to counterbalance the effects of the profit decline.
