TCS dividend: Rs 44,962 crore payout in FY25! Here's dividend history

Tata Consultancy Services (TCS) has declared Rs 30 per share as final dividend for FY25. This, along with the third interim dividend of Rs 10 per share and a special dividend of Rs 66 in the December quarter; and also Rs 10 per share each dividends in Q1 and Q2, totaled Rs 126 per share dividend for the financial year.  

TCS has a policy of returning 80-100 per cent of free cash flow to shareholders. For the March quarter, its payout stood at 88.8 per cent. 

In its results note, TCS said its FY25 total shareholder payout stood at Rs 44,962 crore in the form of dividends. Data showed FY25's dividend payout was TCS' highest ever. Before this, TCS paid dividends of Rs 115 per share in FY23, amounting to Rs 33,306 crore. In 2020, it declared dividends worth Rs 25,125 crore.

The dividend declared by TCS in FY25 compares with Rs 73 per share or Rs 16,290 crore dividends the IT major announced in FY24.

TCS declared a 1.68 per cent year-on-year (YoY) drop in net profit at Rs 12,224 crore for the March quarter compared with Rs 12,434 crore in the same quarter last year, a marginal miss. Its consolidated sales for the quarter rose 5.29 per cent YoY to Rs 64,479 crore from Rs 61,237 crore in the same quarter last year. 
 
The stock rose 0.34 per cent to Rs 3,257.55 on Friday.

Centrum Broking said TCS reported a resilient performance with attrition steady at 13.3 per cent and plans for higher campus intake, despite near term uncertainty and ongoing macro jitters. 

"We see a measured recovery ahead as the record $12.2 billion order book ramps up, GenAI engagements scale and BFSI shows early improvement, all of which sustain strong medium‐term visibility. The deal pipeline remains strong and provides robust medium term visibility," it said.

Nuvama said it made minor adjustments to its FY26 and FY27 EPS estimates and continued to value TCS at 25 times FY27 EPS, with a target of Rs 4,050 against Rs 4,200 earlier. 

"Retain ‘BUY’ at attractive valuations (4 per cent dividend yield)," Nuvama said on TCS today.