ITC Showers ₹3,896 Crore in Dividends on BAT-Linked Firms; Trademark Deal Worth ₹404 Crore Also Revealed
ITC paid ₹3,895.74 crore in dividends to British American Tobacco-linked companies in FY26 while acquiring trademark rights worth ₹403.61 crore. Here's the complete breakdown.
RJ Kesari News Desk: ITC Ltd. has distributed a whopping ₹3,895.74 crore in dividends to two companies linked to British American Tobacco (BAT) during the financial year 2025-26. The details, disclosed in the company's latest annual report, highlight BAT's continued financial gains from its long-standing investment in the Indian FMCG giant.
Although the dividend payout remains substantial, it is around 8.1% lower than the ₹4,238.93 crore distributed in FY 2024-25, mainly due to a reduction in BAT's shareholding in ITC.
Which BAT Companies Received the Dividend?
BAT holds its strategic investment in ITC through three entities:
- Tobacco Manufacturers (India) Limited (TMI)
- Middleton Investment Company Limited
- Rothmans International Enterprises Limited
During FY 2025-26:
- Tobacco Manufacturers (India) Limited (TMI) received ₹3,197.89 crore
- Middleton Investment Company received ₹697.86 crore
The annual report did not disclose any dividend payment to Rothmans International Enterprises, despite it holding a 1.24% stake in ITC.
BAT's Stake in ITC Continues to Decline
As of March 2026, BAT-linked entities held the following stakes in ITC:
- TMI: 17.79%
- Middleton Investment Company: 3.88%
- Rothmans International Enterprises: 1.24%
The decline in total dividend payout is largely attributed to TMI gradually reducing its stake in ITC over the last two years.
ITC Acquires BAT Trademarks for ₹403.61 Crore
Apart from dividend payments, ITC also completed the acquisition of trademark rights for three premium tobacco brands from BAT group companies for the Indian market.
The company spent a total of ₹403.61 crore, including:
- ₹286.14 crore to Benson & Hedges (Overseas) Ltd.
- ₹73.14 crore to Dunhill Tobacco of London Ltd.
- ₹44.33 crore to Rothmans of Pall Mall Ltd.
These acquisitions strengthen ITC's ownership of well-known tobacco brands in India.
Business Transactions Between ITC and BAT Group Increased
The annual report also revealed that business dealings between ITC and BAT-affiliated companies expanded during FY 2025-26.
Sales of goods and services to British American Tobacco (GLP) Ltd. increased to ₹1,587.03 crore, up from ₹1,445.27 crore in the previous fiscal year.
Similarly, transactions with British American Shared Services (GSD) Ltd. rose to ₹739.69 crore, compared to ₹562.41 crore a year earlier.
The increase reflects stronger commercial engagement between ITC and BAT group companies beyond dividend distributions.