ITC Q4 FY25: Profit Surges 200%, Declares ₹7.85 Dividend

ITC Limited, one of India’s most diversified conglomerates, delivered stellar Q4 FY25 results, demonstrating resilience across its verticals. The company reported a net profit of ₹19,727.37 crore, a massive YoY growth of 285%, making it one of the best quarterly performances in the company’s history.

This was accompanied by a 9.57% increase in revenue, robust full-year EPS growth, and a final dividend announcement of ₹7.85 per share, solidifying ITC’s reputation as a steady wealth generator for its investors.

Let’s delve deeper into what drove these outstanding results, how each segment contributed, and what the road ahead looks like for ITC.

📊 Detailed Financial Breakdown

🔍 Q4 FY25 vs Q4 FY24 – Performance Highlights

The most notable takeaway is the quadrupling of PAT, attributed partly to non-operational gains, improved margins, and consistent segment performance.

📅 Full-Year FY25 Financial Overview

The consistent full-year growth across key parameters demonstrates ITC’s strength in navigating inflation, rural softness, and evolving consumer preferences.

💸 Dividend Excellence: ₹14.35 Total Payout for FY25

ITC continues its legacy of shareholder rewards:

• Interim Dividend (March 2025): ₹6.50/share

• Final Dividend (Proposed): ₹7.85/share

• Total Dividend FY25: ₹14.35/share

With a dividend yield of ~3.3%, ITC remains one of the top choices for income-seeking investors in India’s large-cap universe.

🏢 Segment-Wise Analysis: Key Business Units That Drove Growth

1. Cigarettes

• The cash-generating core continues to perform.

• Revenue grew despite moderate taxation and strong illicit trade crackdown.

• Cost optimization, limited excise hikes, and premiumization led to stable margins.

2. FMCG – Non-Tobacco

• Flagship products like Aashirvaad Atta, Yippee Noodles, and Savlon reported strong double-digit growth.

• Continued rural expansion, focus on direct distribution, and e-commerce helped bolster sales.

• Significant investments in personal care and lifestyle segments fueled brand penetration.

3. Hotels

• Segment benefited from post-pandemic rebound in domestic and international tourism.

• Improved average room rates (ARRs) and occupancy rates.

• Profitability enhanced by operational leverage and curated luxury offerings.

4. Agribusiness

• Margins improved due to supply chain digitization and value-added exports.

• Leveraged its deep rural sourcing capabilities to cater to global markets.

5. Paperboards, Paper & Packaging

• Despite some raw material cost pressure, volume growth and innovation in eco-friendly packaging helped protect margins.

• ITC Maars (Modern Agri-Advisory Services) initiative extended to packaging in the agriculture sector.

📈 Share Price and Market Sentiment

Following the announcement on 22nd May:

Investors cheered the earnings beat, and the stock gained ₹10 in a single trading session. Analysts attribute the rise to profit surprise, robust dividend, and sustained FMCG traction.

🔎 EPS Growth: Sign of Earnings Strength

The EPS surge is not only a result of higher profit but also better margin management and capital discipline.

📊 Balance Sheet Strength

• Debt-Free Status: Maintains 0 debt position, allowing ample cash for capex and dividends.

• Cash Reserves: Over ₹25,000 crore in liquid assets.

• ROE: Stands at 24.6%, among the highest in the sector.

This positions ITC to withstand macro shocks and pursue aggressive growth when needed.

🔮 Strategic Outlook FY26 and Beyond

1. FMCG Expansion

• Introduction of Ayurvedic & Health-based products.

• Focus on digital-first launches to align with millennials and Gen Z.

• Scaling up rural distribution networks.

2. Hotels Business

• Multiple new properties in pipeline (ITC Narmada, ITC Bhubaneswar).

• Hospitality revival expected to contribute 12-15% to revenues by FY27.

3. Green Goals

• ITC aims to be plastic neutral, water positive, and carbon positive by 2030.

• Solar power installations across production units increasing sustainability score.

4. Agri-Tech

• ITC e-Choupal 4.0 to use blockchain and AI for precision farming.

• Strengthening agri export portfolio with organic produce and specialty crops.

🆚 Peer Comparison: Valuation vs FMCG Rivals

🔍 Observation: ITC trades at a significantly lower PE, offering both value and income advantages.

🧠 Analyst Verdict: Is ITC a Buy?

✅ Pros

• Strong cash flows and diversified income sources.

• Debt-free with robust dividend policies.

• FMCG brands gaining fast consumer mindshare.

• Expanding into high-growth adjacencies (e-health, agritech, hotels).

⚠️ Risks

• Regulatory headwinds in tobacco business.

• FMCG competition from global majors and startups.

• Hotel segment still dependent on macro-tourism cycles.

💬 Expert Recommendation:

“ITC’s performance confirms its structural transformation from a tobacco-led company to a holistic consumer powerhouse. At current valuations, it remains a BUY with a long-term growth story.” — Broker Insight, Motilal Oswal

📌 Conclusion: A New Era of Profitable Growth

ITC Limited has decisively turned a corner — shedding its image as a tobacco-only play, and emerging as a multi-engine growth company. Q4 FY25’s explosive profit growth, solid revenue expansion, and continued commitment to sustainability and innovation highlight ITC’s evolution into India’s most resilient consumer giant.

For long-term investors, the combination of dividends, valuation comfort, and business agility make ITC a must-have in portfolios geared for growth and income.

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