Dividend Payouts from PSUs Decline in FY25

In FY25, government dividend receipts from listed public sector undertakings (PSUs) recorded a decrease. Despite certain sector-specific factors, public sector banks' dividend payouts exhibited an increase.

• Total FY25 dividend to government: ₹82,995 Crores from listed PSUs

• Change from FY24: Down 0.9% from ₹83,749 Crores 

• Total PSUs declaring dividends: 52 (up from 50 last year)

• Overall PSU dividend payout: ₹1.33 Lakh Crores vs. ₹1.38 Lakh Crores in FY24

• Net profit of listed PSUs: ₹4.32 Lakh Crores (up from ₹4.2 Lakh Crores)

• Dividend payout ratio: 30.7% (down from 32.8% in FY24)
  

The reduction in dividend income is attributed to decreased payouts from approximately 15 PSUs, which include:

• Indian Oil Corporation (IOC): Dividend down 75% to ₹2,182 Crores 

• BPCL: Payout fell 53% to ₹2,264 Crores 

• Punjab & Sind Bank: 65% drop to ₹47 Crores 

• Power Grid Corporation & SAIL: Around 20% reduction

• SJVN & RVNL: Over 18% decrease
  

Despite the general decrease, some PSUs recorded increased or maintained dividend payouts. The table below presents dividend contributions from selected PSUs in FY25:

Disclaimer: The securities quoted are for illustration only and are not recommendatory. Dividend payouts and PSU financial performance are subject to market and operational risks.

Public sector banks (PSBs) recorded an increase in payouts:

• Total PSB dividend in FY25: ₹34,995 Crores (up 25.7% from ₹27,853 Crores in previous year)
  

• Government’s share: ₹22,775 Crores (up from ₹18,092 Crores received in previous year)

Further to these dividend inflows, the Reserve Bank of India announced a dividend of ₹2.7 Lakh Crores in May 2025. This dividend may be a factor in government revenues and capital spending capacity, which includes:

• Impacting government revenues

• Potentially influencing capital spending levels

• Potentially contributing to management of fiscal deficit targets

This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.

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