Bengaluru: IT giant Wipro has announced a massive share buyback worth ₹15,000 crore alongside its financial results for the quarter ended March 2025, signalling confidence in its long-term strategy despite a marginal dip in profits.
The company’s board has approved the buyback of up to 60 crore fully paid-up equity shares, representing about 5.7% of its total paid-up capital. The buyback price has been fixed at ₹250 per share, offering a premium of nearly 19% over the last closing price of ₹210.20 on the BSE.
Buyback via tender offer route
The buyback will be carried out through the tender offer route on a proportionate basis for existing shareholders. The record date for determining eligible shareholders is yet to be announced.
Promoter and promoter group entities have also expressed their intention to participate in the buyback, which is often seen as a positive signal of promoter confidence in the company’s valuation and future prospects.
Profit declines slightly in Q4
Wipro reported a consolidated net profit of ₹3,502 crore for the fourth quarter, reflecting a decline of 1.85% compared to ₹3,569 crore in the same period last year.
Despite the slight drop in profit, the company maintained stable operational performance, supported by steady demand in its IT services segment.
IT services segment shows growth
Revenue from the IT services business stood at ₹24,016 crore, marking a 7% year-on-year growth. In dollar terms, the segment recorded revenue of $2,651 million, showing a 0.6% quarter-on-quarter increase and a 2.1% rise compared to the previous year.
However, operating margins for the segment saw a marginal dip of 0.2%, settling at 17.3%, indicating some pressure on profitability.
Guidance for upcoming quarter
For the first quarter of FY27, Wipro has projected IT services revenue in the range of $2,597 million to $2,651 million. This translates to a sequential growth outlook of between -2.0% and 0% in constant currency terms, suggesting a cautious near-term outlook.
Focus on AI-driven growth
CEO and Managing Director Srini Pallia highlighted that advancements in artificial intelligence are significantly reshaping client priorities and creating new growth opportunities.
He stated that Wipro is adopting an AI-first strategy, focusing on a “services-as-a-software” model through its AI Native Business & Platforms unit. The company also plans to continue investing in large-scale strategic deals to strengthen its market position.
Conclusion
Wipro’s ₹15,000 crore buyback announcement underscores its commitment to delivering value to shareholders, even as it navigates a challenging business environment. While profit growth remains modest, the company’s focus on AI-led transformation and strategic investments could play a key role in driving future growth.