Will government dividend collections reach a new high in 2025-26?

Yes, projections indicate that government dividend collections from non-financial CPSEs are expected to exceed previous records in fiscal year 2025-26.

How have CPSE dividends impacted India's budget?

Consistent high dividend inflows from CPSEs have helped cushion the impact of weak disinvestment receipts in recent years.

What is the outlook for state-owned oil companies' dividends?

Lower global crude oil prices are expected to support the earnings of state-owned oil companies, enabling healthy dividend payouts.

Home / Business and Economy / Govt dividend windfall: 5th year of record collections expected

Govt dividend windfall: 5th year of record collections expected

30 Dec, 2025

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Summary

Government dividend collections may hit a new high in 2025-26.
Dividends from state-owned firms have consistently exceeded targets.
Strong CPSE performance offsets weak disinvestment revenue.

Govt dividend windfall: 5th year of record collections expected

The Indian government anticipates a significant boost in dividend collections from its non-financial public sector enterprises for the fifth year running, with projections indicating a new record high for fiscal year 2025-26. These collections are expected to surpass initial budgeted targets, providing a crucial financial cushion.

As of the current fiscal, dividend collections have already reached Rs 44,862 crore, with a substantial portion typically received in the March quarter. This trend follows a record Rs 74,129 crore garnered in 2024-25, significantly exceeding the budgeted Rs 56,260 crore and revised estimate of Rs 55,000 crore. This consistent overperformance highlights the strong financial health of CPSEs.