TCS and HCL Tech Set New Benchmarks with Record Dividend Payouts in FY25

India’s leading IT giants—Tata Consultancy Services (TCS) and HCL Technologies—have announced record-breaking dividend distributions for FY25, returning a staggering 93.5% of their annual profits to shareholders. This move strengthens both companies’ adherence to established capital allocation frameworks and signals a firm commitment to delivering shareholder value, even as industry growth moderates.

TCS Final Dividend

TCS declared a final dividend of ₹30 per share for Q4FY25, bringing the total annual dividend to ₹126. The company’s dividend payout ratio surged to 94% in FY25 from 58% the previous year, resulting in a total cash outflow of ₹44,962 crore to shareholders. Tata Sons, which holds a 71.8% stake in TCS as of March 2025, will receive ₹32,300 crore of this distribution.

HCL Declares Final Dividend

HCL Technologies, India’s 3rd-largest IT services firm, also boosted its final dividend to ₹18 per share, taking the total for FY25 to ₹60—a 15.4% increase year-over-year. The company’s payout totalled ₹16,250 crore, maintaining a high payout ratio of 93.5%. Notably, this marks HCL’s 89th consecutive quarter of dividend distribution.

Also Read: TCS vs Infosys vs Wipro: Which IT Giant Delivered Highest Profits in Q4FY25?

Strong Dividend Payout Despite Mixed Earnings Performance

The hefty capital returns by TCS and HCL come despite subdued earnings growth in FY25. TCS reported a 6% increase in net profit to ₹48,553 crore—it’s slowest in 3 years—while HCL’s profit rose 11% to ₹17,390 crore.

HCL’s dividend payments have outpaced its profit growth by a wide margin. Over the past 5 years, its dividend payouts have grown at a compound annual growth rate (CAGR) of 54%, compared to a 9.5% CAGR in net profits.

Also Read: HCLTech Q4 Results: Net Income Rises 8.1% YoY, ₹18 Dividend Announced; 6% Rise in Share Price

Conclusion

These final dividend proposals, announced alongside the Q4 earnings, remain subject to approval at the respective companies’ upcoming Annual General Meetings (AGMs).

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