BAT’s strategic investment in ITC is held through three entities — Tobacco Manufacturers (India) Ltd, Myddleton Investment Company Ltd, and Rothmans International Enterprises Ltd.
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ITC paid a total dividend of Rs 3,895.75 crore to Tobacco Manufacturers (India) Ltd (TMI) and Myddleton Investment Co, compared to Rs 4,238.93 crore in FY25, marking a decline of about 8.1 per cent year-on-year, according to the latest annual report of the company.
In FY26, ITC has paid Rs 3,197.89 crore to TMI and Rs 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 per cent stake.
The decline in dividend income of two BAT-linked entities is due to a reduction in their holding in ITC.As of March 2026, TMI had a 17.79 per cent stake in ITC, while Myddleton Investment Company had 3.88 per cent. Rothmans International Enterprise has a 1.24 per cent stake.
TMI has divested its stake in ITC over the last two years. It had a 20.32 per cent stake in ITC in December 2024. It had a 24.01 per cent stake in December 2022.
In a SEC filing in December, 2025, BAT had said it retained a 22.91 per cent shareholding and continued to account for ITC as an “associated undertaking” using the equity method of accounting.
Besides, in FY26, ITC also paid Rs 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 Rs 286.14 crore from Benson & Hedges (Overseas) Ltd, Rs 73.14 crore from Dunhill Tobacco of London Ltd, and Rs 44.33 crore from Rothmans of Pall Mall Ltd during FY26, the report said.
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 Rs 1,587.03 crore in FY26, up from Rs 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 Rs 739.69 crore in FY26. This was at Rs 562.41 crore a year ago.