Wipro Initiates ₹15,000 Crore Share Buyback Amid Revenue Decline and Weaker-than-Expected Outlook

Wipro Announces Largest-Ever Share Buyback of ₹15,000 Crore

Wipro Ltd, India's fourth-largest information technology (IT) services company, has announced its largest-ever share buyback of ₹15,000 crore. The Bengaluru-based firm will repurchase 600 million shares at ₹250 apiece, a 19% premium to Thursday's closing price of ₹210.2.

The buyback comes even as analysts flag weak near-term growth, despite a strong deal pipeline. Wipro's chief financial officer, Aparna Iyer, stated that the company is actually returning excess cash on its balance sheet, after ensuring that the net cash available after the buyback is able to support its M&A ambitions as well as large, strategic deals.

Wipro's revenue declined 0.32% year-on-year (y-o-y) to $10.48 billion in FY26, even though it bettered the $9.94 billion estimated by a Bloomberg poll of 38 analysts. Net profit fell even more—8.6% to $1.4 billion.

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The company's revenue decline in FY26 came mainly from consumer companies, which accounts for nearly a fifth of its revenue. Wipro lost $80 million from these companies, which is more than double its revenue decline of $33.4 million.

In the January-March 2026 quarter, Wipro grew its revenue 0.6% sequentially to $2.65 billion. Net profit jumped 7.14% to $375 million.

However, the company expects a weak start to FY27, guiding for April-June revenue of $2.6–2.65 billion—implying a sequential decline of up to 2% or flat growth at best. Management attributed this to delays in ramping up a large client and slower growth from an existing banking client.

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Wipro's shares fell 4.6% to $2.17 on the New York Stock Exchange as of 9:30 pm IST on Thursday, after the results were announced. Despite the weak growth guidance, the company's management put up a strong front, but could not mask the concerns regarding a turnaround.

The company's FY26 revenue decline of 0.32% was an improvement over its declines of 2.7% in FY25 and 3.8% in FY24. Wipro added only 30 new clients in the January-March 2026 period, the least since it added 28 clients during the 90-day period ending September 2024.

The company's management faces the challenge of navigating the company in tough market conditions, said Thomas Reuner, principal consultant at Pierre Audoin Consultants. Clients seek to achieve cost optimization, vendor consolidation, and increasingly, AI-led transformation. Vendor consolidation can favour larger, more distinctive players, while AI-led transformation tends to reward firms that can bring consulting, industry models, engineering assets, and reusable platforms rather than just scaled delivery.

Wipro ended FY26 with 17.2% in operating margins, up 10 basis points from FY25. The company attributed its margin growth to rupee depreciation, which has translated to higher rupee realisations for the same dollar revenue. In terms of headcount, the company added 8,810 employees to end the year with 242,156 people.