ITC Shares Dip After Q4 Results: What’s Going On and What It Means for You

ITC, one of India’s biggest and most trusted companies, recently shared its performance report for the last quarter of the financial year (January to March 2025). After the announcement, its share price fell by over 2%. But why did this happen — especially when ITC is known for its steady business and regular dividends?

How Did ITC Perform in Q4?

In the last three months of the financial year, ITC made a profit of ₹4,875 crore. That’s only slightly more (just 0.8%) than what it made during the same time last year. So, not a big jump, but still in the green.

What did impress the market was ITC’s total income (or revenue), which went up by around 9.4% to ₹18,494 crore. This means the company managed to sell more of its products and services.

So, while profit didn’t grow much, ITC did show that its business is still expanding.

Dividend Announcement: More Money for Shareholders

ITC also announced that it would pay a final dividend of ₹7.50 per share for the year. If you add that to the ₹6.25 interim dividend they gave earlier, it totals ₹13.75 for the year — which is more than what they paid last year.

This is good news for anyone who owns ITC shares. It shows that the company still values its shareholders and is willing to share profits with them.

Why Did the Stock Fall?

Now, here’s the twist. Even though ITC posted growth in sales and announced a nice dividend, its share price dropped by more than 2%.

Why? Because investors were hoping for more — especially in terms of profit. Some parts of ITC’s business, like cigarettes and agriculture, didn’t perform as strongly as expected. There are also concerns about rising costs and possible government regulations that could impact the cigarette business going forward.

So, while the overall numbers weren’t bad, they didn’t excite the market either.

What Are Experts Saying?

Different financial experts and brokerage firms have mixed views on ITC:

• Some say the company’s growth was decent, especially in its hotel and FMCG (daily use items like soaps, biscuits, and cosmetics) businesses. They think ITC is still a good long-term bet.

• Others are a bit cautious, pointing out that the cigarette business — which brings in a large chunk of ITC’s profit — might face challenges.

Basically, while there’s no panic, people are being careful about their expectations.

What’s Next for ITC?

ITC has the advantage of being a very well-diversified company. It doesn’t just sell cigarettes. It also makes consumer goods, runs luxury hotels, and works in the paper and agri-business sectors. So, if one area slows down, others can help balance things out.

The company is also pushing to grow its non-cigarette businesses faster, especially packaged food, personal care, and hotels. That could help reduce its dependence on cigarettes over time — which many see as a smart move.

Final Thoughts

So, is ITC in trouble? Not really. It’s still profitable, growing, and sharing earnings with shareholders. But it’s also dealing with a few bumps in the road.

If you already have shares, the dividend is a nice reward. If you’re watching from the sidelines, it’s a good time to keep an eye on how the company navigates the next few months.