- Wipro shares fell nearly 4% on Friday after the company reported a mixed set of Q4 FY26 earnings, with revenue missing estimates and guidance signalling continued weakness.
- The board approved a ₹15,000 crore buyback at ₹250 per share, marking its first buyback in three years and a 19% premium to the pre result closing price.
- Brokerages flagged weak growth visibility as the key concern, with Q1 FY27 guidance of -2% to 0% constant currency growth pointing to a soft start to the new financial year.
Wipro is currently trading at ₹204.30, reflecting a decline of approximately 4% on the day. The stock touched an intraday low of ₹202.50 on the National Stock Exchange, as investors reacted negatively to the March quarter results and subdued outlook.
The stock had closed marginally higher at ₹210.20 on Thursday following the earnings announcement, but selling pressure intensified on Friday.
Wipro Q4 earnings performance and financial breakdown
Wipro reported a consolidated net profit of ₹3,501.8 crore for the January–March quarter, representing a 1.9% year-on-year decline. Revenue for the period reached ₹242.4 billion, reflecting a 7.7% year-on-year increase but falling short of analyst expectations.
- Large deal bookings showed positive momentum, surging 65.1% quarter-on-quarter to $1,440 million.
- IT services revenue stood at $2,651 million, posting marginal sequential growth.
- Operating margins were reported at 17.3%, providing a degree of stability even as the company manages wage hikes and AI-related investments.
Why Wipro stock is falling despite the buyback announcement
The primary weight on Wipro’s stock today is the weak growth outlook. While the ₹15,000 crore buyback at a 19% premium to the pre result closing price would normally be a significant positive, investors are focused on the company’s Q1 FY27 guidance of -2% to 0% constant currency growth. That range points to a soft start to the new financial year and suggests that demand weakness is not yet behind the company.
CEO Srini Pallia described the current macro environment as the “new normal”, marked by geopolitical and policy disruptions, though he noted that overall IT spending remains resilient. Investors appear less convinced, punishing the stock for the revenue miss and the cautious outlook.
The buyback, while substantial, offers only near term support. Wipro proposes to repurchase up to 60 crore shares, representing approximately 5.7% of its total equity base, through the tender offer route. The total outflow is capped at ₹15,000 crore. But analysts believe this is unlikely to materially alter the company’s medium term growth trajectory.
Wipro outlook for FY27: A test of patience for investors
Wipro finds itself in an uncomfortable position. The company is doing many of the right things: returning capital to shareholders through a large buyback, pivoting to an AI led business model, and making strategic acquisitions. But the quarterly numbers and the guidance tell a different story.
Revenue missed estimates. Net profit fell year on year. Constant currency growth in IT services was essentially flat. And the Q1 FY27 guidance of -2% to 0% suggests that the first quarter of the new financial year will be softer than the one just ended.
For long term investors, the buyback at a 19% premium offers a floor. For traders, the weak momentum and cautious broker notes suggest further downside may be ahead. Wipro remains a quality name in Indian IT, but the market is sending a clear message: good capital allocation cannot forever mask weak growth.
Wipro shares dropped nearly 4% after the company reported weak Q4 results and issued a muted Q1 FY27 guidance of -2% to 0% constant currency growth, signalling continued demand weakness.
Wipro is pivoting to an “AI-first” world by launching an AI Native Business & Platforms unit and making strategic investments, such as the acquisition of Alpha Net Consulting contracts, to capture high-scale opportunities.