Tata Sons to receive ₹32,722 crore in dividend from TCS, plans to utilise on investments in new businesses: Report

In a move to strengthen semiconductor business, the Tata Group is investing ₹91,000 crore in its first semiconductor fabrication (fab) plant in Dholera, Gujarat. The mega project is expected for completion by December 2026. Meanwhile, another semiconductor assembly, testing, marking, and packaging (ATMP) project is underway in Assam, with a planned investment of ₹27,000 crore and an expected completion timeline of March 2026.

The report also highlights that in FY24, Tata Sons utilised dividend income from TCS to fully repay its bank borrowings, becoming a debt-free entity. As of March 31, 2024, its cash surplus rose to ₹3,042 crore, according to credit rating agency ICRA.

ICRA noted that the group’s debt repayments were largely supported by robust dividend inflows and share buybacks during FY24. For the nine months ended December 2025 in FY25, TCS paid Tata Sons ₹24,931 crore in interim dividends, its second highest after ₹30,418 crore it received in FY23.

Despite continued investments in its digital and aviation arms—both in the capital expenditure phase—ICRA maintained that Tata Sons’ credit profile remains strong, supported by reliable dividend income, share buybacks, and the considerable market value of its investments.

In the quarter ended March 2025, TCS’ net profit declined 1.6% year-on-year, while the revenue from operations grew 5.2% YoY.

The IT services company reported a consolidated net profit of ₹12,224 crore for Q4FY25 (profit to shareholders), down 1.6% on a yearly basis from ₹12,502 crore in Q4FY24. Sequentially, the net profit is down 1.2% from ₹12,444 crore.

Compared to street estimates TCS has reported mixed Q4 earnings, with revenue growth beating the expectations, while net profit is lower-than-expectations.

The consolidated revenue from operations in Q4FY25 stood at ₹64,479 crore, up 5.2% YoY compared to ₹61,237 crore in Q3FY24.

During the March quarter, revenue from its Indian markets grew 33% year-on-year, followed by the Middle East & Africa (MEA) region at 13.2%. Latin America and Asia Pacific regions contributed 4.3% and 6.4% revenue growth in cc terms, respectively. Among key industries, Energy, Resources and Utilities (+4.6% YoY) and BFSI (+2.5) supported the business growth.

TCS shares have so far this year declined 21% massively underperforming the NIFTY50 index which is down 1.42% year-to-date.