ITC's BAT-linked business grows 10% to Rs 1,587 crore in FY26, but dividend payout slips 9%
ITC's FY26 annual report shows transactions with its largest shareholder BAT rose 10% to Rs 1,587 crore, even as dividend payout to BAT fell 9% to Rs 3,896 crore. Net profit was nearly flat at Rs 20,286 crore while gross revenue climbed 10% to Rs 80,867 crore. BAT holds a 22.9% stake.
What happened
ITC's FY26 annual report shows business with largest shareholder BAT grew 10% to Rs 1,587 crore, while dividend payout to BAT fell 9%. ITC net profit rose under
Key facts
- Rs 1,587 crore BAT business +10% YoY
- dividend Rs 3,896 crore -9% YoY
- net profit Rs 20,286 crore +<1%
- gross revenue Rs 80,867 crore +10%
- BAT stake 22.9%
Why this matters
The rising BAT-related business alongside a falling dividend payout warrants scrutiny of related-party dynamics with ITC's largest shareholder holding 22.9%.
What to watch
- BAT block sale or stake-trim announcement
- Indian tobacco taxation/GST changes in upcoming budget
- ITC dividend declaration ratio shift in next AGM
- FMCG segment EBITDA margin crossing double digits
- Net profit growth resuming above mid-single digits
- Track ITC quarterly results for cigarette volume vs FMCG margin trajectory
- Monitor BAT investor commentary on India stake and capital returns
- Watch ITC board signals on payout policy post hotels demerger
- Assess related-party transaction disclosures for governance scrutiny