If you’ve tracked the stock market over the past week, you probably noticed something interesting about the ITC share price. On the surface, the company’s Q4 FY25 results looked just okay, revenue was up slightly, and core profits were modest. But then, the stock jumped nearly 3% in a single day, and everyone started talking about the ₹15,000 crore profit.
So what happened? And more importantly, should you care as an investor? Let’s break it down, simply.
ITC share price and market reaction
On May 23, 2025, ITC’s share opened higher and gained 2–3%, hitting an intraday high of ₹438.20 on the NSE. It eventually settled near ₹434–₹435, up around 2% from the previous day.
That’s a sharp move for a stock that’s been mostly range-bound for months. So, what triggered it? One reason: a large one-time gain from demerging its hotels business. But there’s more under the hood, including a decent dividend and some steady revenue from its cigarette and FMCG segments.
Also read: Leela Hotels IPO 2025: Key dates, details
Breaking down the Q4 FY25 results
Now, let’s decode what happened in ITC’s Q4 results. There are two parts to this story: the reported profit (which made headlines) and the adjusted profit (which reflects the real business performance).
| Key Financials (₹ crore) | Q4 FY25 | Q4 FY24 |
| Revenue from Operations | 20,376.36 | 20,349.96 |
| QoQ Revenue | 20,376.36 | 18,561.59 (Q3) |
| Consolidated Net Profit | 19,727.37 | 4,934.80 |
| One-Time Gain (Hotels Demerger) | 15,179 | 0 |
| Adjusted Profit (Post Gain) | 5,155.27 | 4,934.80 |
While revenue rose slightly year-on-year, the major spike in net profit came from the one-time demerger gain. Without it, profit growth was only about 3–4%.
Dividend declared
ITC declared a final dividend of ₹7.85 per share, bringing the total FY25 dividend to ₹14.25 per share (including ₹6.50 interim paid earlier). This is a small bump from the ₹14 dividend declared in FY24.
| Dividend Type | ₹ Per Share |
| Interim Dividend | ₹6.50 |
| Final Dividend | ₹7.85 |
| Total (FY25) | ₹14.25 |
That’s a dividend yield of roughly 3.3% at the current share price, fairly solid for a consumer stock. The consistent payout makes ITC attractive for income-focused investors.
You may also read: IndusInd Bank worst quarter in 2 decades
Brokerage and analyst views on ITC stock
Analysts had mixed but mostly positive takes after the results.
- Jefferies maintained a BUY rating, with a target price of ₹535, noting steady cigarette performance and strong rural demand.
- Motilal Oswal also retained a BUY, with a target of ₹525, citing ITC’s leadership in cigarettes and its gradual FMCG expansion.
- Nuvama trimmed its target from ₹571 to ₹532 but still sees potential in stable agricultural exports and cost control in FY26.
There were warnings too, especially around cost inflation, muted urban consumption, and pressure on margins in the FMCG and paperboard segments. But overall, brokerages see ITC as a low-risk, high-dividend stock in an uncertain market.
You may also read: Aegis Vopak Terminals IPO 2025: Key dates, details
What does this mean for investors?
Pros:
- Steady core business: Cigarettes still generate solid cash flow, with volumes up 4–5%.
- Dividends: You get ₹14.25/share this year, that’s consistent, reliable income.
- Strong brand portfolio: Aashirvaad, Sunfeast, Bingo, etc., continue to dominate.
- Hotels business demerged: This could unlock value separately for future investors.
Cons:
- Growth is slow: FMCG volumes are under pressure, and margins are tight.
- One-time profit: The ₹15,000 crore gain won’t repeat next quarter.
- Muted urban demand: Inflation and low wage growth are hurting sales in key cities.
If you’re looking for steady, non-volatile returns, ITC still checks most boxes. But if you’re chasing fast capital growth, this stock might feel too slow.
You may also read:Â Delhivery jumps 10% after Q4 results
Bottom line
After its Q4 FY25 results, the ITC share price moved for a reason, it offered clarity. Despite inflation, input cost challenges, and a slow-moving FMCG segment, ITC delivered a profit, kept its dividend strong, and gave investors a clean separation of its hotel business.
It’s a stable player with cash-generating businesses and low drama. Think of it more as a dependable anchor in your portfolio than a moonshot stock.
If you’re building wealth slowly, ITC might just be the calm in your investment storm.
