Kolkata-based FMCG giant ITC Limited has confirmed July 29 as the payment date for its final dividend for the financial year 2026-27 (FY27). Shareholders eligible for this payout will be identified based on the record date, set for Wednesday, May 27.
The company previously announced a final dividend of Rs 8 per equity share. This is in addition to an interim dividend of Rs 6.50 per share, bringing the total dividend payout for FY27 to Rs 14.50 per share.
Dividend History and Payouts
ITC has a consistent track record of dividend distributions. For FY25, the company declared a total dividend of Rs 14.35 per share, amounting to Rs 8,133.11 crore. In FY24, the total payout was Rs 13.75 per share, or Rs 7,799.45 crore. The highest recent payout was in FY23, with Rs 15.50 per share, totaling Rs 7,448.41 crore. Dividend yields for ITC have typically ranged between 3.2% and 5.9% since FY20.
Q4 Performance Overview
ITC reported a steady performance for its March quarter, with resilient growth in its cigarette business and margin expansion contributing positively to profitability. This occurred despite muted revenue growth observed in the agri and paper segments. Nirmal Bang Institutional Equities noted the company's overall steady earnings amidst a challenging macroeconomic environment.
Analyst Share Price Targets
Several institutional brokerages have provided updated price targets for ITC shares:
- Nirmal Bang Institutional Equities: Maintained a 'HOLD' rating, citing ITC's resilient performance and proactive steps to fortify its portfolio. They revised their target to Rs 340 (from Rs 305 earlier), valuing the company at 19 times its FY28E EPS.
- Axis Direct: Revised its FY27 and FY28 estimates downwards due to recent tax hikes in the cigarette business and inflationary pressures. However, they remain positive on medium to long-term growth, suggesting a target price of Rs 325 (down from Rs 340).
- BOB Capital Markets: Maintained a 'Buy' rating with a target of Rs 355. They highlighted ITC's continued focus on premiumisation, digital-first brands, value-added agri products, and expansion across FMCG categories as key drivers for long-term growth.
Disclaimer: This article provides market news for informational purposes only and should not be considered investment advice. Consult a qualified financial advisor before making investment decisions.