Wipro has announced its largest-ever share buyback worth ₹15,000 crore, even as the company continues to face weak growth and declining revenue trends. The Bengaluru-based IT firm will repurchase 600 million shares at ₹250 each, offering a 19% premium over its market price, signaling confidence despite ongoing challenges.
The buyback comes after three consecutive years of revenue decline, with FY26 revenue slipping 0.32% to $10.48 billion. While this was slightly better than analyst estimates, profitability took a sharper hit, with net profit falling 8.6% to $1.4 billion. A major drag came from consumer-facing businesses, where the company lost significant revenue.
Despite weak annual performance, the company showed short-term improvement. In the March 2026 quarter, revenue rose 0.6% sequentially to $2.65 billion, while net profit increased 7.14% to $375 million, indicating some operational stability.
Management clarified that the buyback is a way to return excess cash to shareholders, while still maintaining sufficient funds for acquisitions and large deals. However, concerns remain about future growth. For the April–June quarter (Q1 FY27), Wipro has projected flat to 2% decline in revenue, citing delays in client project ramp-ups and slower growth in key banking clients.
Investor sentiment remains cautious. Analysts believe that although the buyback is positive, weak growth outlook and macroeconomic uncertainty could continue to pressure the stock. This was reflected in the company’s shares, which fell after the results announcement.
CEO Srini Pallia acknowledged global challenges, including geopolitical tensions, changing trade policies, and tighter immigration rules, which are affecting IT spending worldwide. Additionally, rising competition and AI-driven transformation are reshaping client expectations, favoring companies with stronger consulting and technology capabilities.
On the positive side, Wipro improved its operating margin to 17.2%, supported by currency benefits. The company also added 8,810 employees, though it signaled cautious hiring ahead due to uncertain demand.
Overall, Wipro’s strategy reflects a balance between rewarding shareholders and navigating a difficult growth environment, with a turnaround still uncertain.
