Key Takeaways:
- Record Capital Return: Wipro approved its largest-ever ₹15,000 crore buyback at ₹250 per share, signaling strong confidence in long-term value.
- Mixed Financial Performance: While quarterly profit dipped nearly 2%, large deal wins surged 65% sequentially, driven by AI and cost-saving projects.
- Cautious Growth Outlook: The company gave a flat-to-negative revenue forecast for the next quarter as clients remain selective with IT spending.
Wipro Ltd reports a nearly 2% drop in fourth-quarter net profit to ₹3,502 crore while announcing its largest-ever ₹15,000 crore Wipro buyback at ₹250 per share, signaling confidence despite global uncertainty.
Wipro said its net profit fell from ₹3,570 crore a year earlier, even as it rose 12% sequentially from ₹3,119 crore in the previous quarter. Revenue for the March quarter increased 8% year-on-year to ₹24,236 crore.
The company’s IT services segment generated $2,651 million in revenue, up 0.6% quarter-on-quarter and 2.1% year-on-year. Analysts said the results reflect steady performance amid cautious client spending.
“The company is shifting toward higher-value, AI-driven projects rather than volume growth,” said Biswajit Maity, senior principal analyst at Gartner. He added that Wipro is focusing on large deals and efficiency-led engagements as clients consolidate their vendor base.
Wipro Buyback Approved As Profit Slips Slightly
The board approved a ₹15,000 crore Wipro buyback, the largest in the company’s history, subject to shareholder approval. The buyback price is set at ₹250 per share.
Chief Financial Officer Aparna Iyer said the move reflects strong cash flows and capital allocation strategy. “We have maintained margins in a narrow band and continue to invest in clients, capabilities, and people,” she said.
Wipro has conducted five previous buybacks, including ₹12,000 crore in 2023 and ₹9,500 crore in 2020. The latest Wipro buyback underscores management’s confidence in long-term growth despite near-term volatility.
AI Deals And Spending Trends Shape Growth Outlook
CEO and Managing Director Srini Pallia said geopolitical and policy disruptions are becoming a “new normal,” though overall IT spending remains resilient.
He said artificial intelligence is reshaping client priorities and opening new opportunities. “We are pivoting to a services-as-a-software model through our AI-focused platforms to deliver value-driven outcomes,” Pallia said.
Wipro secured $1.44 billion in large deals during the quarter, up 65% sequentially. The growth was driven by demand for AI transformation and cost optimization solutions.
Gartner forecasts global IT spending will grow more than 10%, from $5.56 trillion in 2025 to $6.32 trillion in 2026. Analysts expect reinvestment in AI initiatives to strengthen companies like Wipro as enterprises modernize operations.
Hiring, Guidance Reflect Cautious Industry Sentiment
Wipro hired 7,500 freshers during FY26, including about 3,000 in the fourth quarter. However, the company has not provided hiring targets for FY27, citing demand uncertainty linked to rapid AI adoption.
For the first quarter of FY27, Wipro expects IT services revenue in the range of $2,597 million to $2,651 million. This implies a sequential growth outlook of minus 2% to flat in constant currency terms.
Despite cautious guidance, the company reported strong cash performance, with operating cash flows at 112.6% of net income for the fiscal year.
Analysts said the combination of stable revenue, strong deal wins, and strategic AI investments positions Wipro for gradual recovery, even as clients remain selective in spending.
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