TCS Q3: Investors Eye Rs 34 Dividend Amid Wide Analyst Forecasts
Overview
Tata Consultancy Services is set to reveal its third-quarter earnings on January 12. Investors are keenly awaiting a dividend declaration, with analysts projecting an average payout of Rs 34.19 per share. Historical data shows TCS has a consistent dividend history but with occasional deviations from forecasts, adding anticipation to this announcement.
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TCS Gears Up for Q3 Results, Dividend Expectations Build
Tata Consultancy Services (TCS) is scheduled to unveil its third-quarter financial results on January 12, drawing significant investor attention towards potential dividend declarations. Analysts polled by Bloomberg anticipate an average dividend of Rs 34.19 per share for the quarter. These estimates span a wide range, from a low of Rs six to a high of Rs 75 per share, reflecting diverse market outlooks.
Dividend Outlook
So far in the current financial year, TCS has distributed dividends totaling Rs 22 per share. For the full fiscal year, Bloomberg-tracked analysts foresee a total payout of Rs 115.72 per share. This suggests market expectations for approximately Rs 94 per share in dividends across the remainder of the fiscal year, underscoring the importance of the upcoming announcement.
Historical Payout Trends
Historically, Tata Consultancy Services has demonstrated a steady pattern of dividend payouts, influenced by earnings performance and board decisions. In the fiscal year 2025, the company disbursed Rs 126 per share, exceeding analyst expectations of Rs 121.03 per share. The previous fiscal year, 2024, saw a payout of Rs 73 per share against anticipated Rs 74.06. In FY23, TCS declared Rs 115 per share, surpassing forecasts of Rs 95.93. Earlier years also show variations, with FY22 at Rs 43 (expected Rs 52.35) and FY21 at Rs 38 (expected Rs 46.16). The FY20 payout of Rs 73 per share closely aligned with expectations.
Quarterly Payout Analysis
Examining third-quarter payouts reveals a historical divergence between analyst estimates and actual declarations. In Q3 FY25, the market anticipated Rs 28.71 per share, while TCS announced a dividend of Rs 76 per share. Q3 FY24 saw Rs 27 declared against an expected Rs 10.63. Q3 FY23 figures matched at Rs eight per share for both expectations and payouts. In Q3 FY22, Rs seven per share was announced versus an expected Rs eight. Q3 FY21 reported Rs six per share, below the expected Rs 12.37. Notably, in Q3 FY20, TCS declared Rs five per share despite no analyst dividend forecast. This history of surprises fuels investor anticipation for the January 12 announcement.
