22 Indian firms declared dividends despite losses in FY25: Report

There is no cap on dividends paid from accumulated profits of earlier years, but distributions from general reserves are subject to stricter limits on both quantum and rate.

In either case, companies must account for depreciation and adjust any current or past losses before distributing dividends.

Further, dividend payout from general reserves requires shareholder approval, while those drawn from prior-year profits may be declared as interim dividends by the board without such approval.