Wipro slides 4% after Q4; Rs 15,000 crore buyback approved
Wipro slides 4% after Q4; Rs 15,000 crore buyback approved
Wipro reports a 2% YoY fall in Q4 net profit to ₹3,502 crore as revenue climbs 8%, announces a ₹15,000 crore buyback and faces soft IT services demand.
Wipro reported a 2% year-on-year decline in its consolidated net profit for the December quarter, at ₹3,502 crore, even as revenue rose 8% to ₹24,236 crore. The results came with a structured emphasis on a sizeable buyback, the company’s board approving a ₹15,000 crore share repurchase alongside the quarterly numbers. Revenue from operations stood at USD 2.65 billion, up 0.6% quarter-on-quarter and 2.1% year-on-year, with constant-currency growth at 0.2% sequentially but a 0.2% annual drop, underscoring a still tepid demand environment for IT services.
The company’s IT services margin landed at 17.3%, down 0.3 percentage points quarter-on-quarter and 0.2 percentage points year-on-year, reflecting continued cost pressures and investments that are weighing on profitability even as profits improved sequentially.
On the stock market front, Wipro’s shares fell as much as 4% to a day’s low of ₹202 on the NSE following the results, as investors weighed volume growth against the modest profit uptick and margin pressures. Analysts have been cautious; Morgan Stanley maintained an Underweight rating and trimmed its target to ₹192 from ₹242, signaling a softer outlook and projecting limited revenue growth in FY26. The brokerage highlighted a 1.3% revenue drop in constant currency for Q4 and warned of further declines in early FY27 guidance, suggesting the near-term demand softness could persist.
The buyback, described as the first significant repurchase in over three years, is set to occur via the tender route up to 60 crore shares, representing roughly 5.7% of paid-up capital. In some coverage, the price was described around ₹250 per share, a premium to the last close, with promoters signaling participation in the scheme. Investors will be watching how the buyback interacts with a cautious earnings trajectory and what it signals about management’s confidence in the medium-term demand environment for Wipro’s core IT services.
Overall, the results indicate a mixed quarter: revenue growth on the top line alongside a dip in profitability and margin headwinds, paired with a bold capital return plan intended to support shareholder value. The market will await further detail on FY27 guidance and the pace of cost-management measures as the IT services market continues to rebalance.
