TCS Dividend Announcement: What To Expect From The IT Behemoth On Payouts Ahead Of Q3 Results

Tata Consultancy Services will announce its third-quarter results on Monday, Jan. 12, with investors also watching for a dividend declaration.

Analysts tracked by Bloomberg expect the company to announce a dividend of Rs 34.19 per share for the quarter. Estimates from 26 analysts range from a low of Rs six per share to a high of Rs 75 per share.

So far in the current financial year, the company has paid dividends totalling Rs 22 per share. For the full year, analysts tracked by Bloomberg expect a payout of Rs 115.72 per share. This implies that the market expects close to Rs 94 per share in dividends over the remaining part of the financial year.

Historical data shows that Tata Consultancy Services has maintained steady dividend payouts across financial years, with variations depending on earnings and board decisions. In FY25, the company announced dividends of Rs 126 per share, compared with analyst expectations of Rs 121.03 per share. In FY24, the company declared Rs 73 per share against an anticipated Rs 74.06 per share.

In FY23, the company announced Rs 115 per share, higher than the anticipated Rs 95.93 per share. The payout stood at Rs 43 per share in FY22, compared with an expected Rs 52.35 per share. In FY21, the company declared Rs 38 per share against an anticipated Rs 46.16 per share. In FY20, the announced dividend of Rs 73 per share broadly matched expectations of Rs 73.1 per share.

Quarterly data for the third quarter shows that actual payouts have often differed from analyst expectations with a wide margin. In Q3 FY25, analysts anticipated a dividend of Rs 28.71 per share, while the company announced Rs 76 per share. In Q3 FY24, the anticipated dividend was Rs 10.63 per share, compared with an announced Rs 27 per share.

In Q3 FY23, expectations and actual payouts matched at Rs eight per share. In Q3 FY22, the company announced Rs seven per share against an anticipated Rs eight per share. In Q3 FY21, Tata Consultancy Services declared Rs six per share, below the expected Rs 12.37 per share. In Q3 FY20, the company announced Rs five per share, despite no dividend being anticipated by analysts.