Tata Sons FY25 revenue is likely to be lower despite record dividends

Tata Sons reported a sharp 80% decline in total revenue in FY25, dropping to ₹7,875 crore from ₹40,304 crore in FY24. This was mainly due to the absence of large one-time gains, such as the ₹32,000 crore earned from the partial stake sale in TCS the previous year. Despite this, Tata Sons’ dividend income grew 34%, crossing ₹26,000 crore, driven by robust operational performance and strong financial fundamentals of group companies like TCS, Tata Motors, and Tata Steel.

Our founder and MD, Mr. Shriram Subramanian, highlighted that "The reason for growth in dividends is because of the improving profitability of most large Tata Group companies and likely the lack of suitable reinvestment opportunities for those companies." He added, "For instance, TCS generates the highest free cash flow within the group and will likely need to distribute cash as dividends due to limited investment opportunities caused by a slowdown in the IT services sector."

Read more in this detailed article from Mint:

https://www.livemint.com/companies/news/tata-sons-fy25-revenue-dividend-income-tcs-tata-steel-tata-motors-n-chandrasekaran-11749479116468.html

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