Big Dividend Boost, Shareholders Gain Big; Highest Payout In A Decade After FY23
In FY25, Nifty50 companies paid Rs 2.76 lakh crore in dividends — the second highest in a decade. With low capex and promoter-focused strategies, dividend payouts have significantly increased despite slow profit growth.
In FY25, Nifty50 companies paid Rs 2.76 lakh crore in dividends | Image by Grok |
Mumbai: India’s top 50 listed companies, under the Nifty50 group, earned a profit of Rs 6.44 lakh crore in FY25. Out of this, Rs 2.76 lakh crore was distributed as dividends — the second highest payout in the last 10 years.
Only 3 per cent Profit Growth, But 15.8 per cent Dividend Surge
In FY25, net profit grew by just 3 per cent year-on-year. However, dividends increased by 15.8 per cent. This shows that companies are spending less on expansion (capex) and are focusing more on rewarding shareholders.
42.9 per cent Dividend Payout Ratio in FY25
The dividend payout ratio — which shows the share of profit distributed as dividends — stood at 42.9 per cent in FY25. This is the second-highest after FY23's record 43 per cent.
Top Dividend Payers
TCS – Rs 45,612 crore (73 per cent increase YoY)
ITC – Rs 17,957 crore
Infosys – Rs 17,854 crore (6.5 per cent decline YoY)
HDFC Bank – Rs 16,635 crore
Coal India – Rs 16,332 crore
HCL Tech – Rs 16,291 crore
Wipro – Rs 6,283 crore (up from Rs 522 crore in FY24)
Airtel – Rs 9,280 crore (up from Rs 4,602 crore in FY24)
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Who Didn't Pay Dividends?
Axis Bank, IndusInd Bank, and Eternal Ltd. (formerly Zomato) did not issue any dividends in FY25.
Why Dividends Increased
- Limited capex plans by companies
- High buyback tax, making dividends more attractive
- High promoter shareholding — dividends directly benefit promoters
- Strategy to retain domestic investors as foreign investors sell off
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