ITC paid ₹3,895.74 crore in dividends to two BAT-linked entities in FY26.
The dividend payout declined about 8.1% year-on-year.
ITC also paid ₹403.61 crore to acquire trademarks for three brands from BAT for the Indian market.
Two British American Tobacco-Linked Entities Receive ₹3,896 Cr Dividend From ITC in FY26
ITC paid ₹3,895.74 crore in dividends to two British American Tobacco-linked entities during FY26, according to its annual report
Two British American Tobacco-Linked Entities Receive ₹3,896 Cr Dividend From ITC in FY26
Summary
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Two entities linked to British American Tobacco (BAT)have received a dividend payout of ₹3,895.74 crore from the Indian conglomerate ITC in FY26, according to the latest annual report of the company.
BAT's strategic investment in ITC is held through three entities -- Tobacco Manufacturers (India) Ltd, Myddleton Investment Company Ltd, and Rothmans International Enterprises Ltd.
ITC paid a total dividend of ₹3,895.75 crore to Tobacco Manufacturers (India) Ltd (TMI) and Myddleton Investment Co, compared to ₹4,238.93 crore in FY25, marking a decline of about 8.1% year-on-year, according to the latest annual report of the company.
In FY26, ITC has paid ₹3,197.89 crore to TMI and ₹697.86 crore to Myddleton Investment Company.
The annual report, however, does not mention the dividend payment amount to Rothmans International Enterprise, which has a 1.24% stake.
The decline in dividend income of two BAT-linked entities is due to a reduction in their holding in ITC.
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As of March 2026, TMI had a 17.79% stake in ITC, while Myddleton Investment Company had 3.88%. Rothmans International Enterprise has a 1.24% stake.
TMI has divested its stake in ITC over the last two years. It had a 20.32% stake in ITC in December 2024. It had a 24.01% stake in December 2022.
In a SEC filing in December, 2025, BAT had said it retained a 22.91% shareholding and continued to account for ITC as an "associated undertaking" using the equity method of accounting.
Besides, in FY26, ITC also paid ₹403.61 crore to acquire the trademarks for three brands from BAT for the Indian market.
ITC acquired property, plant and equipment and intangible assets worth ₹286.14 crore from Benson & Hedges (Overseas) Ltd, ₹73.14 crore from Dunhill Tobacco of London Ltd, and ₹44.33 crore from Rothmans of Pall Mall Ltd during FY26, the report said.
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The annual report also informed about related-party transactions between ITC and several BAT Group companies during the year.
Sales of goods and services to British American Tobacco (GLP) Ltd stood at ₹1,587.03 crore in FY26, up from ₹1,445.27 crore a year earlier.
Similarly, sales of goods and services for British American Shared Services (GSD) Ltd, which provides IT shared services, was also higher at ₹739.69 crore in FY26. This was at ₹562.41 crore a year ago.