Wipro Shares Slip 4% After Q4; Brokerages Flag Concerns Despite Buyback

Shares of Wipro declined sharply on Friday, falling as much as 3.69% to ₹202.50 on the National Stock Exchange, as investors reacted negatively to its March quarter results and subdued growth outlook.

The stock came under pressure after the company reported a mixed set of Q4 FY26 earnings, with revenue missing estimates and guidance signalling continued weakness in demand.

Wipro reported a consolidated net profit of ₹3,501.8 crore for the quarter, down 1.89% year-on-year from ₹3,569.6 crore. 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.

More importantly, the company's Q1 FY27 guidance of -2% to 0% constant currency growth pointed to a soft start to the new financial year, which appears to have weighed on investor sentiment.

Growth Concerns Overshadow Positives

Brokerages flagged weak growth visibility as a key concern, citing the revenue miss, muted guidance, deal delays and client-specific issues. Analysts also pointed to continued underperformance across segments and slow deal ramp-ups, indicating limited near-term recovery.

Some analysts cautioned that the stock may continue to trade at a discount to peers amid persistent execution challenges and subdued demand outlook.

Despite these concerns, margins remained relatively stable. The company reported an operating margin of 17.3%, slightly above estimates, although partly supported by one-off gains. Wipro has guided for margins in the range of 17–17.5% going forward.

Buyback Offers Near-term Support

Wipro's board approved a ₹15,000 crore share buyback programme, proposing to repurchase up to 60 crore shares, or over 5% of equity, at ₹250 per share which is a 19% premium to the pre-result closing price.

While the buyback and stable margins are expected to provide some near-term support, analysts believe these factors are unlikely to materially alter the company’s medium-term growth trajectory.

JPMorgan noted that margins were resilient but highlighted that growth remains the key concern.

Nomura described the quarter as a "mixed bag", pointing to steady deal wins but weaker-than-expected guidance. It expects margins to remain stable and has marginally raised its FY27–28 earnings estimates, supported by improved capital allocation through the buyback.

Meanwhile, Nuvama Institutional Equities said the company is likely to see margin pressures in the near term due to wage hikes, deal ramp-ups and continued investments in AI capabilities. However, it retained a positive stance, citing attractive valuations and the sizeable buyback.

Overall, while Wipro's capital return and margin stability offer some cushion, the weak growth outlook and cautious guidance have kept investor sentiment subdued in the near term.