WIPRO

’s ₹15,000 Cr Buyback Overshadowed by Weak Growth

’s announcement of its largest-ever share buyback worth ₹15,000 crore failed to lift investor sentiment, with shares falling nearly 3% a day after the news. Despite returning significant cash to shareholders, the company’s third consecutive year of revenue decline and slow capability building have raised concerns about its growth trajectory. Analysts point to weak execution and delayed adoption of AI-led transformation as key challenges. Financial Performance & Shareholder Returns Buyback: 600 million shares at ₹250 apiece, a 22% premium to market price. Revenue: down $756 million from FY23 peak of $11.23 billion, ending FY26 at $10.48 billion (–0.32% YoY). Net profit: $1.4 billion in FY26 (–8.6% YoY). Acquisitions: $481 million spent on three firms, adding $130 million in revenue. Shareholder payouts: ₹32,900 crore returned over three years (₹14,517 crore via buybacks, ₹18,407 crore via dividends). Strategic Weaknesses Revenue declines in FY24 (–3.8%), FY25 (–2.7%), and FY26 (–0.32%). Lost revenue over three years exceeds incremental gains of peers like LTIMindtree, Mphasis, Coforge, and Persistent Systems. Analysts cite slow capability building, weak conversion of deal pipeline, and cautious client spending. Lagging in AI-led capabilities compared to Infosys, HCL Tech, and LTIMindtree, which have partnered with frontier AI labs. Recent Initiatives Launched AI Native and Business Platforms unit to sharpen focus on AI. Introduced Wipro Intelligence to strengthen positioning in generative AI. Harman Digital Transformation Services seen as the only acquisition adding competency depth. Conclusion Wipro’s buyback highlights its strong balance sheet and shareholder-friendly stance, but structural growth concerns remain unresolved. With peers advancing faster in AI and vendor consolidation, Wipro’s turnaround depends on execution of its new AI initiatives and ability to convert its deal pipeline into sustained revenue growth.