
The Tata Consultancy Services (TCS) board would consider a proposal on interim dividend for the ongoing financial year (FY26) today. The IT major's capital allocation policy of returning 80-100 per cent of free cashflow to shareholders has been very consistent. In the past three years alone, the Tata group firm delared dividends to the tune of Rs 1,08,852 crore, data compiled with corporate database AceEquity suggests.
The largest domestic IT services firm has declared dividend every quarter since its listing, complemented by three bonus issues and five buyback offers. Since FY04, it declared dividends worth Rs 2,19,118 crore, as per AceEquity.
TCS total shareholder payout for FY25 stood at Rs 45,588 crore, with the shareholder payout ratio at 94 per cent, the IT giant said in its Integrated Annual Report 2024-25. Total shareholder payout stood at Rs 47,445 crore for FY24, Rs 42,079 crore for FY23, Rs 38,010 crore for FY22 and Rs 33,873 crore for FY21, respectively.
The dividends for FY25 amounted to Rs 126 per equity share, which included payment of three interim dividends of Rs 10 each, a special dividend of Rs 66 per equity share, and a final dividend of Rs 30 per equity share.
For FY24, the company paid a total dividend of Rs 73 per equity share which included three interim dividends of Rs 9 each, a special dividend of Rs 18 per equity share and a final dividend of Rs 28 per equity share. In addition, TCS bought back 4,09,63,855 equity shares at a price of Rs 4,150 per equity share for an aggregate consideration of Rs 17,000 crore. The shareholders’ payout with respect to dividend and buyback including tax on buyback (excluding transaction costs, other incidental and related expenses) aggregated to Rs 47,445 crore. In FY23, TCS' dividend stood at Rs 57,828 crore, as per Ace Equity.
For FY25, the IT frm's board recommended a final dividend of Rs 30 per share, bringing the total dividend for the year to Rs 126 per share.
TCS Q1 results
Stock analysts are anticipating the Tata group firm to clock up to 3 per cent year-on-year (YoY) jump in net profit for the June quarter on up to 4 per cent YoY rise in sales. Margin is seen contracting for TCS, but marginally. Deal wins are seen anywhere between $7 billion and $10 billion.