TCS dividend: Third interim dividend today; record date, dividend history and more

The Mumbai-based IT major Tata Consultancy Services (TCS) will consider declaring its third interim dividend for FY26 today. Earlier in the financial year, the K Krithivasan-led firm had announced two interim dividends of Rs 11 each, taking the total to Rs 22 per share so far.  

If declared, the interim dividend will be paid to equity shareholders whose names appear in the register of members or in the records of the depositories as beneficial owners as of Saturday, January 17, 2026. The Tata group firm follows a capital allocation policy of returning 80-100 per cent of free cash flow to shareholders. So far, TCS has paid a total dividend of Rs 14,834 crore in the first six months of FY26 compared with Rs 13,749 crore in the first six months of FY25.

For the full financial year 2025, TCS reported a total shareholder payout of Rs 45,588 crore, translating into a 94 per cent payout ratio, according to its Integrated Annual Report 2024-25. This compared with shareholder payouts of 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.

During FY25, TCS paid a total dividend of Rs 126 per share, which included three interim dividends of Rs 10 per share each, a special dividend of Rs 66 per share, and a final dividend of Rs 30 per share.

In FY24, the company paid total dividends of Rs 73 per share, comprising three interim dividends of Rs 9 per share each, a special dividend of Rs 18 per share, and a final dividend of Rs 28 per share. In addition, TCS undertook a Rs 17,000 crore share buyback at Rs 4,150 per share. The overall shareholder payout in FY24, including dividends, buyback and taxes, but excluding transaction and incidental costs, stood at Rs 47,445 crore.

According to AceEquity data, the dividend payout alone amounted to Rs 57,828 crore in FY23. Since its listing, TCS has declared dividends every quarter and has also announced three bonus issues and five share buyback programmes.

Meanwhile, the IT major would also declare its December quarter results today. Analysts said investor focus would be on the outlook on restructuring and its impact on business, client discretionary spending amid rising macro volatility in the US, commentary on cost takeout projects and performance of the BFSI vertical.

The country’s largest information technology services company by revenue is expected to report a nil to 6 per cent year on year increase in net profit, along with a 4 to 6 per cent year on year rise in net sales. Ebit margins were seen coming under sequential pressure due to the two-month impact of wage hikes and the continuation of redundancy-related costs, analysts said.