In the financial year 2024-25 (FY25), the Nadar family, led by HCL Technologies founder Shiv Nadar, has claimed the top spot in promoter dividend income among Indian business families, surpassing Azim Premji of Wipro. According to data compiled from listed companies, the Nadar family earned a record ₹9,906 crore in dividend income from their substantial stake in HCL Technologies, marking a significant increase from ₹8,585 crore in the previous year.
HCL Technologies, in which the Nadar family holds a 60.82% stake, declared a total dividend payout of ₹16,290 crore for FY25. This strong dividend distribution has cemented the Nadar family’s position as the most cash-rich promoter group in India for the year. Notably, the family’s other listed company, HCL, did not announce any equity dividend for either FY24 or FY25, making HCL Technologies the sole contributor to this impressive income.
Azim Premji’s Dividend Income Sees Sharp Decline:
In contrast to the Nadar family’s surge, the Azim Premji family’s dividend income from Wipro experienced a steep decline in FY25. The Premji family, which owns approximately 72.7% of Wipro through a mix of unlisted holding firms and direct shareholdings, received ₹4,570 crore in dividends this year—a 50% drop from the ₹9,128 crore earned in FY24.
The primary reason for this decline was the absence of a share buyback by Wipro in FY25. In the previous year, Wipro had conducted a substantial ₹12,000 crore share buyback, which had significantly boosted the Premji family’s total cash inflow. With no such buyback in FY25, the family’s dividend income was limited to regular payouts, resulting in a much lower figure compared to the previous year.
Methodology and Scope of the Analysis:
The analysis of promoter dividend income is based on the actual dividends and buyback proceeds received by individual promoters and their families from listed Indian companies. It specifically considers the dividend income of unlisted holding and investment companies, as well as individual promoter shareholders. Importantly, the study excludes dividend income from government-owned entities, Tata Group companies, institutions like Larsen & Toubro, HDFC Bank, ICICI Bank, and listed subsidiaries or global multinationals.
This approach ensures that the rankings reflect the true cash flow to promoter families from their direct and indirect holdings in listed entities. For the Nadar family, the entire ₹9,906 crore income is attributed to their majority holding in HCL Technologies, while for the Premji family, only Wipro’s dividends are considered, as it is the group’s sole listed entity.
Broader Implications for India Inc and Promoter Wealth:
The shift in the promoter dividend income rankings highlights evolving dynamics within India’s corporate landscape. The Nadar family’s rise to the top highlights the strong performance and shareholder-friendly policies of HCL Technologies, which has consistently delivered robust returns to its promoters and investors. The company’s ability to generate substantial profits and maintain high dividend payouts has not only benefited the Nadar family but also reinforced HCL Technologies’ reputation among public shareholders.
For Azim Premji, the sharp reduction in dividend income reflects the impact of strategic decisions such as share buybacks, which can significantly influence annual cash flows to promoters. The absence of a buyback in FY25, coupled with a regular dividend payout, resulted in a marked decrease in the Premji family’s ranking on the dividend income list.
This year’s data also serves as a reminder of the significant wealth creation and cash flow opportunities available to Indian promoter families through listed entities. Dividend income remains a critical component of promoter wealth, especially in an environment where companies are increasingly focused on rewarding shareholders with regular and special payouts.
As India’s corporate sector continues to grow, the competition among promoter families for the top spot in dividend income is likely to intensify. The Nadar family’s achievement in FY25 sets a new benchmark and may influence dividend policies across the industry, as promoters seek to balance reinvestment with shareholder rewards.
FY25 has seen the Nadar family establish itself as India’s leading promoter group in terms of dividend income, driven by HCL Technologies’ exceptional performance and generous payouts. This milestone not only marks a personal triumph for Shiv Nadar and his family but also reflects broader trends in India’s evolving business landscape.
