Board recommended a dividend a dividend of Rs. 4 per equity share to the shareholders for FY2025-26
TATASTEEL · price
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Tata Steel's Board has recommended a dividend of ₹4 per equity share (400% on face value ₹1) for FY2025-26, subject to shareholder approval at the AGM on July 2, 2026. The record date is June 12, 2026, with payment from July 6, 2026. For comparison, the company paid ₹4.49 per share in FY2024-25, meaning this represents a dividend reduction of approximately 11%. The standalone net profit for FY2025-26 was ₹16,065 crore, up from ₹13,970 crore in the previous year. The Board also approved acquiring an additional 23% stake (41.4 lakh shares) in TM International Logistics Limited from IQ for ₹335 crore, which will increase Tata Steel's holding in TMILL from 51% to 74%.
The dividend cut from ₹4.49 to ₹4 per share is a negative signal for income-focused investors, despite strong profit growth. While earnings improved, the reduced payout suggests the company is conserving cash, possibly due to capex needs or the regulatory challenges at Tata Steel Netherlands. The stock may see slight pressure from the headline 'dividend cut' despite healthy underlying financials.