Now Reading: India Inc dividend payout ratio hits 12-year low at 27.6% in FY26
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India Inc dividend payout ratio hits 12-year low at 27.6% in FY26
India Inc dividend payout ratio hits 12-year low at 27.6% in FY26
India Inc's aggregate dividend payouts rose 8.2% year-on-year to Rs 5.13 lakh crore in FY26, but the payout ratio fell to 27.6%, its lowest in 12 years, according to a Mint analysis…
The Story in Brief
India Inc's aggregate dividend payouts rose 8.2% year-on-year to Rs 5.13 lakh crore in FY26, but the payout ratio fell to 27.6%, its lowest in 12 years, according to a Mint analysis of BSE 500 companies. The growth slowed from 11.9% in FY25, and the top six payers (TCS, HDFC Bank, Infosys, ITC, ONGC and Coal India) accounted for 26% of total dividends. Companies are retaining more earnings because of uncertainty, while buyback activity has surged to Rs 24,951 crore in 2026 so far.
The Indian Opinion
The drop in payout ratio to a 12-year low is being read as corporate caution, but analysts point to capital discipline and a shift towards buybacks rather than distress. The real test will be whether FY27 sees a revival in capex plans, which have softened, or if companies continue to prefer share repurchases over dividends as a tax-efficient way to reward shareholders.
Source: livemint.com
This story was synthesised by AI from the source linked above.
