TCS dividend history: IT major declared Rs 314 per share as dividend in 3 yrs; Q1 preview

Shares of Tata Consultancy Services (TCS) are likely to remain in focus during the trading session on Wednesday and Thursday as the India's largest IT services exporter will announce its results for the quarter ended on June 30, 2025 on July 09 (Thursday), officially kicking-off the result season for India Inc. It will also consider declaration of an interim dividend to the shareholders.

TCS is often monikered as the cash for Tata Group, thanks to its rich and consistent dividend history. Dividends are a share of a company’s profits distributed to shareholders and TCS is among the top dividend payers of Dalal Street. Since 2011, the IT solutions major has announced and paid dividends 65 times to the investors, which is highest by any Indian company since then.

Despite a tough time for IT companies, TCS has had a dividend yield of 3-4 per cent for the last three financial years as the company has announced a total dividend of Rs 314 for the investors. The stock has risen up to 5 per cent in the last three-years but the additional 9 per cent dividend takes the total return to 14 per cent for the investors.

TCS has paid a total dividend of Rs 115 for FY2022-23 (April 2022 to March 2023) which included 3 interim dividends of Rs 8 each in July, October and January, and a special dividend of Rs 67 per share in January 2023. The company announced a final dividend of Rs 24 per share in May 2023.

In the fiscal 2023-24 (April 2023 to March 2024), TCS paid out a total of Rs 73 as dividend, which included three interim dividends of Rs 9 each in July, October and January, followed by a special dividend of Rs 18 per share in January 2024. It also announced a final dividend of Rs 28 per share in May 2024.

Adding to its rich dividend history, TCS paid five installments adding to Rs 126 as dividend in FY2024-25 (April 2024 to March 2025), which included three interim dividends of Rs 10 each in July, October and January. It also announced a special dividend of Rs 66 in January 2025 and a final dividend of Rs 30 for the investors.
 

TCS: Q1 preview

Equirus Securities is expecting TCS to report a revenue of Rs 65,061.3 crore in the June 2025 quarter, up 1.3 per cent YoY and 0.9 per cent QoQ. Ebitda may come in at Rs 17,192.8 crore, up 3.2 per cent YoY and 1.3 per cent QoQ and Ebit margins may come in at 24.3 per cent, down 40 bps on a yearly basis. Net profit is seen at Rs 12,368.4 crore, up 2.7 per cent YoY and 1.2 per cent QoQ.

"Demand outlook in BFSI, retail, communication, hi-tech and other key segments, impact of volatile macro/tariff issues on demand, deal pipeline esp. for large/mega size deals, client decision making and pricing trends, outlook on CY25E/FY26E IT budgets and any further update on growth strategies shall be key things to look out, it said with an 'add' rating a target price of Rs 3,460.

Systematix Institutional Equities expects TCS’ revenue to remain flattish QoQ in USD terms, mainly due to deal ramp-ups and favorable currency movements, partially offset by ramp down of the BSNL deal. "However, we expect a resilient TCV (Total Contract Value) and a steady revival in overall discretionary spend." it said.

Last quarter, the Asia Pacific, Continental Europe, and MEA (Middle East Asia) markets predominantly contributed to growth, with the US, UK, and India markets recording muted growth, a trend we believe the company could replicate, Systematix added. "We estimate a 16 bps QoQ decline during the quarter," with a 'buy' rating and a target price of Rs 4,017.