Diversified conglomerate ITC Ltd reported a strong performance in the third quarter ended December 31, 2025, with consolidated gross revenue rising 7.1% year-on-year to Rs 21,578 crore. Profit after tax before exceptional items rose 9.9% to Rs 5,284 crore, driven by continued momentum in FMCG, cigarettes and agribusiness segments.

The FMCG-Others segment posted double-digit growth with revenue up 12.6% and segment PBIT up 42% year-on-year. The staples, dairy, noodles, biscuits, personal care and home care categories led the charge. ITC also saw a 60% increase in revenue from its organic and digital brands such as Yogabar, Prasuma and 24 Mantra, along with strong growth in e-commerce and modern trade channels.

In the cigarette segment, net income increased 7.9%, helped by volume-driven growth and performance of differentiated and premium offerings. However, the ITC flagged the risks of a sharp hike in cigarette taxes from February 1, warning that it could fuel illicit trade and adversely affect farmers, MSMEs and government revenues. “Such a steep increase will give a further impetus to the illicit trade and cause immense hardship and loss… to the Exchequer,” the company said, noting that India is already the world’s fourth largest illicit cigarette market.

Agribusiness posted revenue growth of 6.3%, led by exports of leaf tobacco and value-added products such as coffee and frozen seafood. Carton and packaging rose 11% in underlying profits despite a planned maintenance shutdown, with first signs of improvement seen following the imposition of minimum import prices on paperboard imports.

ITC’s FoodTech venture, part of its long-term strategy, saw GMV double year-on-year to Rs 150 crore and expanded its cloud kitchen presence to about 70 outlets across five cities.

In terms of sustainability, ITC reaffirmed its leadership, maintaining the best ESG scores and global accolades, including its position in the Dow Jones Sustainability Emerging Markets Index for the fifth year.

The company’s board also declared an interim dividend of ₹ 6.50 per share for FY26. The dividend will be paid between February 26 and February 28, 2026 to shareholders of record as of February 4.

Before the third quarter results, ITC The stock fell to ₹318.05 in intraday trade, just above its 52-week low of ₹318. It ended the day at ₹318.65, up 0.81%. Shares are down 12.45% so far in 2026 and are down 26% over the past year.