ITC Ltd. - Quarterly/Annual Result Disclosures and Notes dated 31 Dec 2025
Auditor and Management Disclosures and Notes for the quarterly results dated 31 Dec 2025
1. ‘Revenue from operations’ includes ‘Gross Revenue from sale of products and services’ and ‘Other operating revenue’.
2. ‘Changes in inventories of finished goods, work-in-progress and stock-in-trade’ should be read as ‘Changes in inventories of finished goods, Stock-in-Trade, work-in-progress and intermediates’.
3. ‘Depreciation, depletion and amortisation expense’ should be read as ‘Depreciation and amortization expense’.
NOTES TO STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2025
1. The Unaudited Standalone Financial Results and Segment Results were reviewed by the Audit Committee, and approved by the Board of Directors of the Company at its meeting held on 29th January, 2026.
2. The continuing significant brand building costs covering a range of personal care and branded packaged food products are reflected under 'Other expenses' stated above and in Segment Results under 'FMCG-Others'.
3. 18,29,340 Ordinary Shares of Re. 1/- each were issued and allotted under the Company’s Employee Stock Option Schemes during the quarter ended 31st December, 2025. Consequently, the issued and paid-up Share Capital of the Company stands increased to Rs. 1252,89,59,771/- as on 31st December, 2025.
4. Exceptional Items of Continuing Operations for the nine months ended 31st December, 2025 of Rs. 185.75 Crores represents :
a) estimated one-time impact on recognition of past service cost of Rs. 273.83 Crores during the quarter ended 31st December, 2025 with respect to increase in liability of gratuity and compensated absences, primarily arising due to change in definition of wages pursuant to notifications issued by the Ministry of Labour & Employment dated 21st November, 2025 bringing into force the provisions of the Code on Wages, 2019, the Industrial Relations Code, 2020, the Code on Social Security, 2020 and the Occupational Safety, Health and Working Conditions Code, 2020 (collectively referred to as the “New Labour Codes”). The Company continues to monitor the finalisation of rules by the Central and State Governments and clarifications from the Government on other aspects of the New Labour Codes and will account for such developments as needed.
b) receipt of Rs. 88.08 Crores during the quarter ended 30th September, 2025 on final settlement of the insurance claim towards leaf tobacco stocks, which were destroyed due to fire at a third party owned warehouse in an earlier year.
Exceptional Items of Continuing Operations for the quarter and nine months ended 31st December, 2024 represents fair value gain of Rs. 527.96 Crores upon acquisition of 1,52,32,129 Equity Shares of Rs. 2/- each of EIH Limited and 34,60,829 Equity Shares of Rs. 2/- each of HLV Limited, from Russell Credit Limited, a wholly owned subsidiary of the Company, at their respective book value.
5. Discontinued Operations represents operations of the Hotels Business of the Company (excluding ITC Grand Central, Mumbai) which was demerged pursuant to the Scheme of Arrangement amongst the Company and ITC Hotels Limited and their respective shareholders and creditors under Sections 230 to 232 read with the other applicable provisions of the Companies Act, 2013 (‘the Scheme’) w.e.f 1st January, 2025, being the Appointed Date and the Effective Date of the Scheme.
Brief particulars of the Discontinued Operations are given as under (Rs. in Crores):
a - Revenue from Operations - 0 - 931.29 - 0 - 0 - 2277.73 - 2277.73
b - Total Income - 0 – 942.85 - 0 - 0 - 2296.94 - 2296.94
c - Total Expenses - 0 – 641.35 - 0 - 0 - 1724.42 - 1724.42
d - Profit Before Exceptional Items and Tax (b-c) - 0 - 301.50 - 0 - 0 - 572.52 - 572.52
e - Exceptional Items - 0 - (12.18) - 0 - 0 - (16.37) - 15163.06
f - Tax Expenses - 0 – 72.43 - 0 - 0 – 139.25 - 631.82
g - Profit from Discontinued Operations (d+e-f) - 0 – 216.89 - 0 - 0 – 416.90 - 15103.76
6. The amalgamation of Sresta Natural Bioproducts Private Limited and Wimco Limited, wholly owned subsidiaries, with the Company was approved by the Board of Directors on 1st August, 2025. Necessary petitions seeking sanction of the National Company Law Tribunal, Kolkata and Hyderabad Benches, to the said amalgamation have been filed and pending approval, no effect of the same has been given in these Results.
7. Prag Agro Farm Limited has ceased to be a wholly owned subsidiary of the Company with effect from 10th December, 2025, consequent to its voluntary liquidation.
8. The Board of Directors of the Company have declared an Interim Dividend of Rs. 6.50 per Ordinary Share of Re. 1/- each (2025 – Rs. 6.50 per Ordinary Share). The Record Date fixed for the purpose of determining entitlement of the Members for the Interim Dividend is Wednesday, 4th February, 2026 and such Dividend will be paid between Thursday, 26th February, 2026 and Saturday, 28th February, 2026 to those Members entitled thereto.
9. This statement is as per Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.