Earlier this month, Wipro announced that the company’s board will hold a meeting on April 16 to consider and approve the buyback proposal, along with the Q4 earnings. The stock has gained more than 3% in one week and over 6% in one month, despite overall volatility in markets amid the Iran-US war. However, the stock is down more than 21% in 2026 so far.
Wipro buyback
While details such as the size of the buyback, price and route have not yet been disclosed, the move signals potential capital allocation action by the company at a time when sentiments in IT stocks volatile. Wipro had last announced a share buyback in 2020. If approved tomorrow, the buyback would mark the fifth such action taken by the IT services major so far.Buyback of shares refers to a corporate action where a company repurchases its own shares from the existing shareholders. Usually, the company purchases the shares at a higher price than the current levels, encouraging investors to participate. Typically, a company decides to buy back its shares in order to increase share value, utilise surplus cash, prevent hostile takeovers or to increase promoter holdings.
Wipro Q4 expectations
Wipro is expected to report steady revenue performance but a decline in profitability in Q4 FY26, as wage hikes, acquisition-related costs and weak discretionary spending continue to weigh on margins despite stable demand in select verticals. The IT major is likely to post nearly 9% year-on-year (YoY) revenue growth, but 5% YoY fall in net profit for the March quarter of FY26, according to an average of seven brokerage estimates.
Sequentially, growth is expected to remain muted. Most brokerages expect low single-digit growth in constant currency (CC) terms, largely supported by the integration of the Harman Digital Transformation Services (DTS) business. A key drag on margins is likely to be wage hikes implemented from March 1, along with integration costs related to the Harman acquisition. Brokerages broadly expect EBIT margins to contract in the range of 40-70 basis points sequentially in the IT services segment.
While rupee depreciation and operational efficiencies may provide some support, they are unlikely to fully offset these headwinds. Deal wins and pipeline conversions will be key focus areas, along with management commentary on FY27 guidance. Wipro’s outlook on AI adoption is also be a key monitorable.
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