TCS announces Rs 30 final dividend, FY25 payout surges to Rs 126 per share

Indian IT services provider, Tata Consultancy Services (TCS), has declared a final dividend of Rs 30 a share for FY2024–25. This takes the combined dividend payment for the year to Rs 126 a share, which is higher than the Rs 73 dividend paid in FY24 by a whopping 73 per cent.

The company’s board on April 10 approved the final dividend, which will be payable five business days after the close of the next Annual General Meeting (AGM), subject to approval by the shareholders. The AGM date will be advised in due course.

FY25 dividend structure shows strong cash distribution

The FY25 dividend distribution indicates significant cash payout The FY25 dividend structure presents a good cash distribution.The Rs 96 per share interim dividend declared earlier quarters forms part to the FY25 total cash dividend distributed by TCS. The breakdown of this payout is listed below: Interim dividend of Rs 28 (Declared May 2024) Interim Rs 10 (Declared July 2024) Interim payout of Rs 10 (Declared October 2024) Interim payout of Rs 66 (Declared January 2025 including the special dividend) Final dividend of Rs 30 (Declared April 2025) Despite the macroeconomic information and poor quarterly reported performance, the strong cash payout indicates that the company remains in a solid liquidity profile and remains committed to provide return to its shareholders.

Stock to trade ex-dividend before record date

TCS shares will be ex-dividend on the record date or a day earlier. On April 9, the company closed at Rs 3,239 on the NSE, lower by 1.64 per cent. The stock has fallen close to 21 per cent this year so far in 2025 and 19 per cent over the last one year, lagging behind the larger IT index.

Historical trend of dividends

TCS distributed dividends totalling Rs 115 per share in FY23, including a special dividend of Rs 67. Even as the larger IT industry struggles with slower deal ramp-ups and pricing pressure, the company’s persistent focus on rewarding long-term investors is reflected in the steady increase in payouts.

What’s next for investors?

Following its Q4 results, which saw the company miss Street estimates on both revenue and profit but post record deal wins worth $12.2 billion, the dividend announcement was made. The increased payout shows management’s faith in the company’s long-term growth and cash generation, even though short-term market sentiment is still cautious.

In order to verify their eligibility for the dividend payout, investors will now keep an eye on the AGM date and the final record date.