TCS Declares Rs 126/Share Dividend for FY25, Highest on Record

Tata Consultancy Services (TCS) has finalized a total dividend payout of Rs 126 per share for the financial year FY25, marking its highest-ever annual shareholder return.

As per the company's latest filing, the FY25 dividend comprises Rs 30 per share as the final dividend, declared alongside its Q4 FY25 results. This is in addition to prior dividends distributed through the year — Rs 10 per share each in the first and second quarters, Rs 10 as the third interim dividend, and a Rs 66 per share special dividend in the December quarter.

In total, TCS disbursed Rs 44,962 crore to shareholders during FY25, according to its earnings release. This outpaces the Rs 33,306 crore payout from FY23, when TCS had declared Rs 115 per share as dividend. The corresponding figure for FY24 was Rs 16,290 crore or Rs 73 per share.

The company follows a policy of distributing 80 to 100 percent of its free cash flow to shareholders. For the March 2025 quarter, the payout ratio stood at 88.8 percent.

TCS posted a net profit of Rs 12,224 crore for Q4 FY25, reflecting a 1.68 percent year-on-year decline compared to Rs 12,434 crore in Q4 FY24. Revenue for the March quarter came in at Rs 64,479 crore, up 5.29 percent from Rs 61,237 crore in the same period last year.

On Friday, TCS shares closed 0.34 percent higher at Rs 3,257.55 on the BSE.

Brokerage houses responded to the Q4 numbers with revised estimates. Nuvama cut its target price from Rs 4,200 to Rs 4,050 while maintaining a 'Buy' recommendation, citing a favorable dividend yield of 4 percent. EPS estimates for FY26 and FY27 were slightly adjusted, with valuation continuing at 25 times FY27 EPS.

Centrum Broking noted stable attrition at 13.3 percent and plans for increased campus hiring. It highlighted robust deal momentum driven by a $12.2 billion order book, ongoing GenAI initiatives, and early signs of recovery in the BFSI segment.