Tata Sons Could See 86% Jump In Dividend Income From TCS For FY25
In FY25, Tata Sons is expected to receive dividends of Rs 37,212 crore from its listed subsidiaries.
The Tata Sons board will meet on Thursday to approve the financials for the fiscal year 2024-25. The holding company for the Tata Group is expected to report flat revenues for the financial year despite an 86% jump in dividend it received from its flagship subsidiary, Tata Consultancy Services.
Tata Sons record a total income of Rs 43,893 crore in fiscal 2024. This included dividend income of Rs 21,528.94 crore from subsidiaries and associates and other income comprising of income from participating in share buybacks of subsidiaries and sale of investments. Tata Sons had recorded an other income of Rs 20,036 crore in FY24 compared to Rs 171 crore in the previous year. The other income was primarily sales proceeds from investments and buyback.
In FY25, Tata Sons is expected to receive dividends of Rs 37,212 crore from its listed subsidiaries. A bulk of the dividend is expected to come from its flagship company, TCS. The IT major paid Rs 130 per share as dividend during the year. This amounted to Rs 37,212 crore in dividends to the parent during the year. There were hardly any buybacks from listed subsidiaries during the last financial year.
Total income from TCS to Tata Sons rose 17.5% during the year compared to the previous year which had dividend and buyback.
Tata Son gets around Rs 2,700 crore in dividends from associates. Including other income it gets from other sources, the salt to software conglomerate is expected to post flat revenues to marginal decline in revenues for the fiscal 2025.
The board of Tata Sons will meet on Thursday to approve the balance sheet and profit and loss accounts for the financial year 2025. It will also review and consider dividend to its shareholders which is primarily the Tata Trusts and dividend to its preference share investors.
The board is also expected to review the progress on various new investments underway including investments into semi-conductor businesses and EV battery. It will also review the progress of much awaited Tata Capital IPO. The company undertook confidential filing with the market regulator, Securities and Exchange board of India. The Tata Capital IPO comprises of fresh issue and offer for sale and Tata Sons along with other investors are expected to participate in the offer for sale.
Subsequent to the merger nod from the NCLT, Tata Motors Finance has been amalgamated with Tata Capital with effect from May 8, 2025.
Tata Capital, considered as an upper layer NBFC, is required to list on the stock exchanges by September 2025 to meet the RBI regulation for upper layer NBFCs.
The regulation also classifies Tata Sons as upper Llayer NBFC and requires Tata Sons to list as well. Tata Sons has, in the last two years, reduced its debt and funding exposure to its subsidiaries especially finance companies and has sought a re-classification for the company.
