Wipro Shares Fall 4% as Q4 Profit Dips Despite ₹15,000 Crore Buyback

Shares of Wipro fell 4% on Friday after the company reported a 2% year-on-year decline in Q4 profit to ₹3,502 crore, despite announcing a ₹15,000 crore share buyback.

The stock dropped as much as 4% to its day’s low of ₹202 on the National Stock Exchange following the earnings release, which showed revenue rising 8% year-on-year to ₹24,236 crore but weak performance in the core IT services segment.

Revenue from IT services stood at $2.65 billion, growing just 0.6% quarter-on-quarter and 2.1% year-on-year. On a constant currency basis, IT services revenue rose 0.2% sequentially but declined 0.2% annually, indicating subdued underlying demand.

Wipro’s IT services operating margin came in at 17.3%, declining 0.3% sequentially and 0.2% year-on-year, reflecting ongoing cost pressures even as sequential profit improved by 12% quarter-on-quarter.

The company’s board approved a share buyback of ₹15,000 crore alongside the financial results, proposing to repurchase more than 5% of its equity, or up to 60 crore shares, at ₹250 per share.

Despite the buyback announcement, brokerages expressed concern over Wipro’s near-term outlook. Morgan Stanley maintained an Underweight rating and cut its price target to ₹192 from ₹242, citing a 1.3% quarter-on-quarter revenue decline in constant currency and a 1.6% year-on-year drop in FY26 revenue.

The brokerage noted that Wipro’s performance continues to lag peers, with 1QFY27 guidance suggesting a further 1.5% to 2% quarter-on-quarter decline in constant currency revenue.

Wipro’s CEO Srini Pallia described the current macroeconomic environment as the “new normal,” marked by geopolitical and policy disruptions, though he acknowledged that overall IT spending has shown resilience.

He attributed the muted guidance for the upcoming quarter to a specific client issue in the Americas and delayed ramp-ups on a deal, adding that Q1 has traditionally been a weaker quarter for the company due to seasonality.

For the quarter ending June 30, 2026, Wipro expects revenue from its IT services business to be in the range of $2,597–2,651 million, translating to a sequential guidance of –2.0% to 0% in constant currency terms.

While margins have remained relatively stable, analysts expect them to fall short of the 17% to 17.5% band projected for FY27, underscoring continued pressure on profitability.