Despite tepid growth in both revenue and profitability, companies in India Inc. rewarded shareholders with record dividend payouts in FY25. The total dividend disbursed by the country’s top listed firms rose 10.8% year-on-year, reaching an all-time high of around ₹5 trillion, up from ₹4.52 trillion in FY24. This surge in payouts came even as combined net profits (adjusted for exceptional items) grew by a modest 5.2% to ₹16 trillion, and aggregate net sales (including gross interest income for lenders) increased by 7.5% to ₹166.4 trillion in FY25.
India’s listed companies collectively paid a record ₹5 trillion as dividends in the financial year 2025. This marks a notable increase of 10.8% compared to ₹4.52 trillion paid in FY24. The rise in payout came despite relatively moderate growth in both revenue and net earnings.
In FY25, the total net profit of top listed firms, adjusted for exceptional gains and losses, rose to ₹16 trillion from ₹15.21 trillion in FY24. This translates to a growth rate of 5.2% on a year-on-year basis. While profits saw a positive trend, the rate of increase was significantly lower than the rise in dividends distributed to shareholders.
The combined net sales of these companies, which include gross interest income for lenders, increased by 7.5% year-on-year. The total net sales figure for FY25 stood at ₹166.4 trillion, up from the previous year. This sales growth, though steady, was not as high as the rise in dividend disbursement.
The higher dividend payouts amid subdued earnings and sales growth reflect the companies’ emphasis on rewarding shareholders. It also highlights the strong cash positions of many firms, enabling them to maintain or increase dividend returns even in a year with only moderate performance improvements.
Read More: Indian Bank Dividend of ₹16.25 Record Date Tomorrow, June 10, 2025!
India Inc's dividend outflow surged to a historic ₹5 trillion in FY25, up 11% from the previous year. This came despite only 5.2% growth in net profits and 7.5% rise in revenue, underlining the commitment of Indian corporates to shareholder value.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Jun 9, 2025, 2:10 PM IST
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