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Bengaluru: Wipro Ltd has declared a mixed bag of financial results for Q4 FY26, with the Bengaluru-based IT giant reporting a 8.6% year on year (YoY) decline in consolidated net profit to ₹3,502 crore. The company’s revenues have remained flat for the year, falling 0.32% year on year to $10.48 billion.
Despite this, the company has made an announcement of a ₹15,000 crore share buyback, repurchasing 600 million shares at a 19% premium, with even the promoters and promoter groups reportedly participating in the issue.
The company’s operating margins remained under pressure reaching 16.2%. The management has cited the transition to higher margin AI consulting as the reason behind the decline, even as the company has been aggressively pursuing acquisitions, the latest being select contracts from Alpha Net as the reason.
The Buyback: A Strategic Cushion
The company is currently sitting on cash reserves in excess of ₹41,000 crores, with the buyback aimed at exerting greater control over decision-making. With this, the company is also looking to pursue M&A deals, as it looks at inorganic growth as a linchpin to boost its revenues.
The company has seen its share of deal wins throughout the quarter, with the massive $1 billion deal with Olam being one of its biggest.
“Advancements in AI are reshaping client priorities and creating new opportunities for us to partner more deeply to deliver value-driven
outcomes. To strengthen our position in an AI-first world, we are pivoting to a services-as-a-software model through the AI Native Business & Platforms unit. Our strategic
deal with the Olam Group further reflects the decisive investments we are making to capture opportunities at scale.” Srini Pallia, CEO and Managing Director, Wipro, said in a press release.
“We have continued to invest in our clients, capabilities and people and maintained our margins in narrow band. Our cash conversion continues to remain strong with operating cash flows at 112.6% of net income for FY’26. During the year we have returned substantial portion of our cash generated to shareholders in the form of dividend. Additionally, in our recently concluded board meeting, the Board of Directors announced buyback of ₹15,000 Cr at a price of ₹250, subject to shareholder approval.” Aparna Iyer, Chief Financial Officer, Wipro, added.
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