The buyback also comes at a time when some investors have questioned IT companies’ strategy to return cash to shareholders as against investing in newer technologies like AI.
The proposal, if approved, will involve repurchasing shares from shareholders in line with applicable rules.
While details such as the size of the buyback, price and route have not yet been disclosed, the move signals potential capital allocation action by the company at a time when sentiments in IT stocks volatile, even though valuations have corrected.
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The current buyback, if approved, will be the company’s first in three years. The last time it announced a similar corporate action was in 2023, when it repurchased shares worth about Rs 12,000 crore.
IT stocks, including Wipro, have had a tough time of late due to an AI-led slump that eroded billions of dollars in market cap.Management had earlier maintained a cautious but steady outlook for the near future. For the March 2026 quarter, Wipro guided IT services revenue in the range of $2.64 billion to $2.69 billion, implying flat to 2% sequential growth in constant currency terms.
The company is also reinventing in the age of AI, where traditional business models are under scrutiny. CEO Srini Pallia said artificial intelligence is increasingly emerging as a differentiator. He highlighted rising adoption of AI-enabled platforms, scaling of AI-led delivery through internal frameworks, and expansion of Wipro’s global innovation network.
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In Q4, the management expects incremental margin dilution from the Harman DTS acquisition, alongside growth investments, large-deal margin mix, and potential wage hikes, but remains confident of sustaining operating margin in the range of 17–17.5%.
Analysts have been muted on the stock for the past few months. For instance, Elara Capital has a sell rating on the stock as it revised revenue estimates by 2-4% during FY27-28E to integrate Harman DTS into its numbers. “Key upside risks are better-than-expected revenue growth and margin expansion,” the broker said.
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