British American Tobacco's India investment continued to deliver a massive dividend stream, with two BAT-linked entities receiving nearly Rs 3,896 crore from ITC in FY26, even as their payout declined amid a reduction in shareholding,
According to ITC's latest annual report, Tobacco Manufacturers (India) Ltd and Myddleton Investment Co. received a combined dividend of Rs 3,895.75 crore during the financial year, compared with Rs 4,238.93 crore in FY25, an 8.1% year-on-year decline, news agency PTI reported.
TMI received the larger share at Rs 3,197.89 crore, while Myddleton Investment Company was paid Rs 697.86 crore. The report did not disclose the dividend amount paid to Rothmans International Enterprises Ltd, which holds a 1.24% stake in ITC.
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The lower dividend payout comes as BAT has been trimming its holding in the Indian conglomerate. As of March 2026, TMI held 17.79% in ITC, while Myddleton's stake stood at 3.88%. Rothmans held 1.24%. TMI's stake has fallen sharply over the past few years, declining from 24.01% in December 2022 to 20.32% in December 2024 before dropping further.
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BAT, however, continues to remain a key shareholder in ITC. In a US SEC filing in December 2025, the company said it retained a 22.91% stake and continued to classify ITC as an "associated undertaking".
ITC also acquired trademarks of three BAT brands for the Indian market during FY26, paying Rs 403.61 crore.
The company also reported significant related-party transactions, including sales to BAT Group entities, with British American Tobacco (GLP) Ltd and British American Shared Services (GSD) Ltd contributing Rs 1,587.03 crore and Rs 739.69 crore respectively.
(With PTI inputs)
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