New Delhi, June 27 -- India Inc. may have celebrated a record Rs.4.9 trillion dividend bonanza in FY25, but the party was noticeably quieter in one corner: the public sector. Behind the headline numbers, state-run enterprises showed clear signs of dividend fatigue, both in payout ratios and growth. Dividends, which had seen strong double-digit gains in previous years, contracted, while payout ratios plunged to multi-year lows. The shift points to a change in priorities: public sector firms are increasingly favouring reinvestment, capital discipline, and long-term value creation over generous near-term distributions.

A Mint analysis of 496 BSE 500 companies, based on Capitaline data covering audited, unaudited, and proposed dividends, sho...