Home / Business and Economy / ITC Dividends Dip: BAT Entities Receive ₹3,895 Crore Payout
ITC Dividends Dip: BAT Entities Receive ₹3,895 Crore Payout
28 Jun
Summary
- BAT entities received ₹3,895.74 crore in dividends from ITC in FY26.
- Dividend income decreased due to reduced holdings by BAT entities in ITC.
- ITC acquired trademarks from BAT for ₹403.61 crore in FY26.
Entities associated with British American Tobacco (BAT) were allocated ₹3,895.74 crore in dividends from ITC during fiscal year 2026. This represents a decrease compared to the prior fiscal year, a change stemming from a reduction in the holdings by BAT's associated companies.
ITC also completed the acquisition of trademarks from BAT for ₹403.61 crore during FY26. These acquisitions involved property, plant, equipment, and intangible assets related to brands such as Benson & Hedges, Dunhill, and Rothmans for the Indian market.
Business transactions between ITC and various BAT Group companies saw an uptick. Sales of goods and services to British American Tobacco (GLP) Ltd rose to ₹1,587.03 crore in FY26, and services provided by British American Shared Services (GSD) Ltd increased to ₹739.69 crore.
The decrease in dividend income for BAT-linked entities is a direct consequence of their reduced shareholding in ITC. Over the past two years, Tobacco Manufacturers (India) Ltd has significantly divested its stake, decreasing from 24.01% in December 2022 to 17.79% as of March 2026.
