TCS dividend: 2nd interim payout decision today; record date, history & more

IT major Tata Consultancy Services (TCS) will consider declaring its second interim dividend for FY26 today. Earlier in the financial year, the Mumbai-headquartered IT firm had announced a first interim dividend of Rs 11 per share.

If approved, October 15, 2025, will serve as the record date for identifying eligible shareholders entitled to receive the second interim dividend. The company follows a capital allocation policy of returning 80–100 per cent of free cash flow to shareholders.

In FY25, TCS reported a total shareholder payout of Rs 45,588 crore, representing a 94 per cent payout ratio, according to its Integrated Annual Report 2024–25. This compared with Rs 47,445 crore in FY24, Rs 42,079 crore in FY23, Rs 38,010 crore in FY22, and Rs 33,873 crore in FY21.

For FY25, TCS distributed a total dividend of Rs 126 per share, including three interim dividends of Rs 10 each, a special dividend of Rs 66, and a final dividend of Rs 30.

In the previous fiscal year (FY24), the company paid Rs 73 per share in total dividends — comprising three interim dividends of Rs 9 each, a special dividend of Rs 18, and a final dividend of Rs 28. Additionally, it executed a Rs 17,000 crore share buyback at Rs 4,150 per share. The combined shareholder payout — including dividends, buyback, and taxes (excluding transaction and incidental costs) — amounted to Rs 47,445 crore in FY24. As per AceEquity data, the dividend payout alone in FY23 stood at Rs 57,828 crore.

Since its listing, TCS has declared a dividend every quarter, in addition to three bonus issues and five buyback offers. Cumulatively, the company has declared Rs 2,19,117.95 crore in dividends since FY04, as per AceEquity.

Most recently, TCS’ board recommended a final dividend of Rs 30 per share for FY25, bringing the total payout for that fiscal year to Rs 126 per share.