Tata Motors has fixed Friday, June 20, 2025, as the date for its 80th Annual General Meeting (AGM). Shareholders will meet to approve the final dividend for the year ended March 31, 2025. The meeting will also cover routine business matters.
Board Recommends 300% Dividend
At a board meeting held on May 13, 2025, the board of directors recommended a final dividend of ₹6.00 per equity share of ₹2 each. This works out to 300% of the share’s face value. The proposal now needs shareholder approval at the AGM. It will be paid to eligible shareholders on or before June 24, 2025.
Recommending vs Finalising a Dividend
When the board recommends a dividend, it is only a proposal. It shows what the directors believe the company can afford to pay. There is no legal obligation until shareholders vote. Finalising a dividend happens after shareholders vote in favour of the proposal at the AGM. Only then does the payout become binding and the company can distribute funds to eligible shareholders.
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Can a Recommended Dividend Be Cancelled?
Yes, a recommended dividend can be cancelled or changed before it is finalised. If new financial information emerges—such as weakened cash flow or unexpected costs—the board may revise its decision. Until shareholders approve the proposal at the AGM, it is not final.
Record Date, Ex-Dividend Date and Payment Timeline
Tata Motors has not yet stated the record date for its 2025 dividend but has confirmed the payment deadline of on or before June 24, 2025. The board may announce both the ex-dividend date and the record date at the AGM on June 20.
Note: Generally, record dates and ex-dividend dates are announced before the AGM, not at it. Companies often release these dates in advance to give shareholders time to plan their trades and ensure eligibility.
Modern electronic payment systems allow the company to credit accounts quickly once the eligible shareholder list is finalized.
Relation Between Ex-Dividend Date and Record Date
Under India’s T+1 settlement cycle, the ex-dividend date typically falls one business day before the record date.
For example, if the record date is January 15, the ex-dividend date would be January 14. Once the record date is officially declared, shareholders who held shares before the ex-dividend date will be eligible for the payout. Anyone buying shares on or after the ex-dividend date will not receive the dividend, since eligibility is determined based on holdings before the ex-dividend date.
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Company Performance and Outlook
Tata Motors’ Q4 FY25 results showed mixed performance. Consolidated net profit fell 51% year-on-year to ₹8,470 crore, down from ₹17,407 crore in Q4 FY24. Revenue from operations remained largely flat at around ₹1.19 lakh crore, a marginal increase of 0.4% from the previous year.
EBITDA declined by 4.1% to ₹16,992 crore, resulting in an EBITDA margin of 14%, down 60 basis points. The passenger vehicles segment delivered moderate growth, while Jaguar Land Rover faced higher costs, affecting overall margins. Commercial vehicles recorded steady volumes, supporting revenue but unable to offset the profit decline.
Disclaimer:
This article is for informational and educational purposes only. It does not constitute financial advice. The author is not a registered financial advisor. While the content is written in good faith and with the utmost care, complete accuracy is not guaranteed. However, updates and corrections will be made as needed to ensure current and correct information.