Kolkata-based FMCG giant ITC Limited announced that its shares will turn ex-dividend today, May 27, 2026. This date also serves as the record date for identifying shareholders eligible to receive the final dividend for the financial year 2026. The company had previously declared a final dividend of Rs 8 per share during its March quarter results announcement on May 21. This payment is scheduled for July 29, 2026.
Including an earlier interim dividend of Rs 6.50 per share, ITC's total dividend payout for FY26 now stands at Rs 14.50 per share, a slight increase from the previous financial year's total. Historically, ITC's dividend yield has ranged between 3.2% and 5.9% since FY20. For FY25, the company distributed a total dividend of Rs 14.35 per share, amounting to Rs 8,133.11 crore.
Analyst Outlook on ITC's Performance
Analysts are closely monitoring ITC's performance, particularly the impact of recent price increases in its various segments. 360 ONE Capital highlighted that price hikes in the DSFT (Domestic Sales of Filtered Tobacco) segment have helped negate tax changes. However, the RSFT (Regulated Sales of Filtered Tobacco) segment, which accounts for 45% of overall volumes, still faces a larger incremental tax impact compared to the price hikes implemented.
Brokerages anticipate a weaker cigarette volume outlook for Q1FY27 but expect price adjustments to provide some cushion for profitability. Elara Securities noted that Q4FY26 did not fully reflect the volume impact of price hikes due to strong volume off-take before new taxes were implemented. They believe Q1FY27 will offer a clearer picture and reiterated an 'Accumulate' rating with a target price of Rs 335.
Nuvama also described the March quarter as a transitional period for the cigarette industry, suggesting that the elevated profitability trend might not sustain into Q1FY27. Despite the challenging environment, ITC continues to scale up value-added agri products, nicotine derivatives, and premium FMCG categories, enhancing its medium-term growth visibility.
Target Prices from Brokerages
- 360 ONE Capital: Rs 440
- Systematix Institutional Equities: Rs 340 (maintaining a 'sidelines' stance due to upheaval in the core cigarettes business)
- Antique: Rs 399 (maintaining 'Buy' based on long-term market leadership)
- Nirmal Bang: Rs 340 (maintaining 'Hold' due to resilient performance despite challenges)
- Axis Direct: Rs 325 (revised lower from Rs 340 due to tax hikes and inflationary pressures, but positive on medium to long-term growth)