Buybacks are also a flexible way to return excess cash to shareholders. Unlike dividends, they are not viewed as a long-term commitment and can be adjusted more easily, analysts said.
IT services major Wipro Ltd on Thursday announced a Rs 15,000 crore share buyback at Rs 250 per share, offering a 19% premium over the stock’s last closing price.
The company’s board approved the plan to buyback up to 60 crore shares, representing 5.7% of the total paid-up share capital.
Wipro shares were up marginally by 0.19% at Rs 210.20 on the BSE on Thursday.
The company reported a consolidated net profit of Rs 3,501.8 crore for March quarter of FY26, down 1.89% from Rs 3,569.6 crore a year ago.
Infosys had announced a Rs 18,000 crore buyback in September 2025. Companies announce share buybacks for several strategic reasons, essentially using their cash to purchase their own shares from the market. One major motive is to boost the share price: when a company reduces the number of shares in circulation, earnings per share (EPS) typically rise, making the stock more attractive and often pushing its price upward.
Another reason is to signal confidence, as management may believe the stock is undervalued and, by buying it back, communicates that it sees its own shares as a strong investment, which can reassure investors, according to analysts.
Buybacks are also a flexible way to return excess cash to shareholders. Unlike dividends, they are not viewed as a long-term commitment and can be adjusted more easily, analysts said.
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“We expect revenue from our IT services business segment to be in the range of $2,597 million to $2,651 million for the June quarter of FY27. This translates to sequential guidance of (-)2.0% to 0% in constant currency terms,” the company said. Srini Pallia, CEO and Managing Director, said, “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.”
