ITC Shares: How Much Money Did It Make From Its Cigarettes Business in Q4 After Price Hike?

Synopsis: ITC’s Q4 results highlight strong performance led by the cigarette segment, which delivered ~29.5% YoY revenue growth driven by price hikes and steady demand. Despite weakness in agri and select businesses, cigarettes remained the key profit engine, contributing the majority of segment earnings.

The shares of a Large-Cap company specialising in operating as a large, diversified conglomerate with primary business segments in Fast Moving Consumer Goods (FMCG), agriculture, paperboards, packaging, and information technology, are in focus following their Q4 results. In this article, let’s see how much money they made from cigarettes after the price hike in Q4.

With a market capitalisation of Rs. 3,78,139.35 crores in the day’s trade, the shares of ITC Ltd rose upto 0.16 percent, making a high of Rs. 304.50 per share compared to its previous closing price of Rs. 304.00 per share.

Business Segments 

ITC’s business operations are divided into multiple segments, including FMCG Cigarettes, FMCG Others, Paperboards, Paper & Packaging, Agri Business, and Other Businesses. The cigarette segment includes cigarettes, cigars, and related tobacco products, while FMCG Others covers packaged foods, snacks, dairy products, beverages, biscuits, chocolates, stationery, personal care products, safety matches, and agarbattis.

The Paperboards, Paper & Packaging segment manufactures speciality paper and flexible packaging products. The Agri Business segment deals in commodities such as wheat, rice, spices, coffee, soya, leaf tobacco, and potatoes. Other Businesses include IT services, hospitality operations like ITC Grand Central Mumbai, and fresh food businesses. FMCG Others results also include high brand-building and business development expenses.

Segment Revenue (ITC – Consolidated)

ITC’s FMCG segment showed strong momentum, driven mainly by cigarettes. Cigarette revenue rose to Rs. 11,951.7 crore (Mar 2026) from Rs. 9,228.7 crore (Mar 2025), reflecting the impact of price hikes and steady demand. FMCG (Others) also grew to Rs. 6,352.4 crore, taking total FMCG revenue to Rs. 18,304.1 crore, up sharply YoY.

Outside FMCG, Agri Business saw a decline to Rs. 3,166.7 crore from Rs. 3,695 crore, indicating softer realisations and volume pressure. However, Paperboards, Paper & Packaging remained broadly stable at Rs. 2,228.6 crore, while the “Others” segment rose to Rs. 1,305.3 crore. Overall, total segment revenue came in at Rs. 25,004.7 crore, showing strong overall growth versus last year.

After adjusting for inter-segment eliminations, gross revenue from operations stood at Rs. 23,625.7 crore, up significantly from Rs. 20,176.4 crore in the same quarter last year. This reflects broad-based improvement, with FMCG (especially cigarettes) being the key growth engine.

Segment Results (PBT)

The FMCG segment delivered strong profitability, with cigarettes contributing the bulk. Cigarette segment results rose to Rs. 5,797.3 crore, up from Rs. 5,402.6 crore last year, showing resilience despite tax and cost pressures. FMCG (Others) also improved significantly to Rs. 525.8 crore, lifting total FMCG segment profit to Rs. 6,323.1 crore.

In contrast, Agri Business profitability dropped sharply to Rs. 200.1 crore, compared to Rs. 252.7 crore last year, reflecting margin compression and volatility in commodities. Paperboards, Paper & Packaging improved to Rs. 232.5 crore, while the “Others” segment declined to Rs. 145.0 crore.

Overall, total segment results stood at Rs. 6,900.7 crore, slightly higher than Rs. 6,401.0 crore in the previous year, but marginally lower than the immediate preceding quarter (Rs. 6,808.1 crore). The data clearly shows that cigarettes remain the dominant profit driver for ITC, offsetting weakness in agri and other cyclical businesses.

How much money did they make from Cigarettes?

ITC’s cigarette business remained the company’s biggest earnings driver in Q4, supported by price hikes and resilient consumer demand. Cigarette segment revenue jumped nearly 29.5% YoY, rising from Rs. 9,228.7 crore in March 2025 to Rs. 11,951.7 crore in March 2026. The strong growth indicates that higher pricing helped offset inflation and taxation pressures while maintaining steady sales volumes in the premium tobacco segment.

Profitability from cigarettes also improved despite cost pressures. Cigarette segment profit increased about 7.3% YoY, from Rs. 5,402.6 crore to Rs. 5,797.3 crore. This means cigarettes alone contributed the majority of ITC’s total segment profit of Rs. 6,900.7 crore, reaffirming that the business continues to generate strong cash flows and remains the key growth and profit engine for the company.

Financials & Others

Its Revenue from Operations decreased by 5 percent YoY from Rs. 18,765 Crores in Q4FY25 to Rs. 17,825 Crores in Q4FY26. On a QoQ basis, revenue declined by 11.1 percent from Rs. 20,047 Crores in Q3FY26 to Rs. 17,825 Crores in Q4FY26.

Its Net Profit declined by 72.4 percent YoY from Rs. 19,808 Crores in Q4FY25 to Rs. 5,470 Crores in Q4FY26. However, on a QoQ basis, net profit increased by 9 percent from Rs. 5,018 Crores in Q3FY26 to Rs. 5,470 Crores in Q4FY26.

The sharp fall happened mainly because the previous year’s quarter had an exceptionally high one-time gain, making the comparison look weak in Q4FY26. While operational performance remained relatively stable, the absence of those extraordinary earnings caused both revenue and net profit growth to appear significantly lower on a year-on-year basis.

ITC Limited maintains strong financial fundamentals with an impressive ROCE of 38.9% and ROE of 29.3%, indicating efficient capital utilization and consistent profitability. The company also has a very low debt-to-equity ratio of 0.03, reflecting a financially stable balance sheet with minimal dependence on borrowings.

The stock currently offers a healthy dividend yield of 4.78%, making it attractive for income-focused investors. Additionally, the company has maintained a strong 3-year average ROE of 28.1% and a high dividend payout ratio of 74.5%, highlighting consistent earnings generation and shareholder-friendly capital allocation

ITC Limited is one of India’s largest diversified conglomerates with business interests across FMCG, cigarettes, hotels, paperboards and packaging, agri-business, and information technology. Established in 1910, the company has built strong consumer brands in foods, personal care, stationery, and lifestyle products while maintaining a dominant presence in the cigarette industry.

The company’s FMCG portfolio includes popular brands across biscuits, noodles, dairy, snacks, chocolates, beverages, and personal care products. ITC is also a major exporter of agricultural commodities such as wheat, rice, spices, and coffee. Its paperboards and packaging business supports both domestic and international markets with sustainable and value-added solutions.

In conclusion, ITC’s Q4 performance clearly highlights the strength of its cigarette business, especially after the price hikes implemented during the year. Despite inflationary pressures and higher taxation, the segment delivered nearly 29.5% YoY revenue growth and remained the company’s largest profit contributor. Strong pricing power, stable demand, and a premium product mix helped the business generate robust cash flows.

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