TATA Sons Anticipates 86% Rise in TCS Dividend Income in FY25

Tata Sons is expected to close FY25 with flat revenues, even though dividend income from its subsidiaries has increased significantly, as per news reports. The company’s board will meet on Thursday to finalise its financial statements for the year and review progress on pending matters.

TATA Sons Higher Dividend from TCS

Tata Consultancy Services (TCS) paid out ₹130 per share as a dividend during the financial year, amounting to ₹33,743 crore for Tata Sons. This represents an 86% increase in dividend income from TCS compared to the previous year. Overall, Tata Sons is estimated to have received ₹37,212 crore in dividends from its listed subsidiaries in FY25. 

Dividend Income by Company

Here's a breakdown of dividend contributions from various listed companies in FY25:

Source: Exchanges, NDTV Profit

Tata Sons also receives about ₹2,700 crore in dividends from associate companies.

Previous Year Comparison

In FY24, Tata Sons recorded ₹43,893 crore in total income. This included ₹21,528.94 crore as dividend income and ₹20,036 crore from other sources such as investment sales and buybacks. The other income figure was significantly higher in FY24 than the ₹171 crore recorded the year before.

Read more: Tata Sons to Fund New Ventures with Significant TCS Dividend.

Other Developments

The board will also review dividend distribution to shareholders, including Tata Trusts and preference shareholders. Updates on ongoing investments, such as those in semiconductors and EV battery businesses, and progress on the Tata Capital IPO will be discussed. Tata Capital, following its merger with Tata Motors Finance, is required to be listed by September 2025 under RBI regulations.

Conclusion

Despite a rise in dividend income primarily from TCS, Tata Sons’ total revenue is expected to remain flat due to lower contributions from other income sources.

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