"Firm-by-firm" review: CPSE dividend may exceed target by 16%

New Delhi: The finance ministry is undertaking a comprehensive "firm-by-firm" review of its dividend policy for central public sector enterprises (CPSEs) and expects such surplus flow from non-financial entities to breach the FY26 budgetary target by 16%, a top official told ET.The ministry eyes dividend mop-up from non-financial CPSEs and other companies in which the government holds stakes to exceed ₹80,000 crore in the current fiscal, he said. This will surpass both the previous high of ₹74,017 crore realised last fiscal and the FY26 budgetary target of ₹69,000 crore.This assessment factors in expected pressure on the margins of state-run petroleum firms-together the biggest contributor to the dividend kitty-in the short run due to volatile global crude oil prices in the wake of the Israel-Iran conflict.This means the government expects the profits of CPSEs to remain strong across various sectors in the current fiscal year.New strategyThe Department of Investment and Public Asset Management (DIPAM) is working out a composite strategy that would factor in a CPSE's profitability, capital spending and other operational requirements to ensure fair dividend payout, the official said. "DIPAM is following a composite strategy under which we have to balance their corporate performance, capex requirement and policy of fair dividends to shareholders," he said.DIPAM is also considering asking only listed CPSEs that are profitable to fork out dividends on a quarterly basis, he added.