Wipro returns over ₹17,000 crore to shareholders through buyback, dividend, 2.6 times its H1 profit
A Ksheerasagar
Wipro shareholders seem to have reasons to be happy, even as the stock is on track to post its steepest annual decline in three years. The company rewarded them handsomely in the first half of FY27, with shareholder payouts exceeding its net profit for the period by more than two-and-a-half times.
On Thursday, the Bengaluru-based software company announced its September-quarter results, which were in line with Street estimates. It posted a net profit of ₹3,200 crore, down 2% from the same period last year and 9% from the June quarter.
For the first half of FY27, the company posted a net profit of ₹6,556 crore. However, it returned substantially more than its earnings to shareholders through share buybacks and dividend payouts.
The domestic IT major bought back 60 crore shares at ₹250 apiece in June, resulting in a total cash outflow of ₹15,051 crore. In addition to the buyback, the company paid a dividend of ₹1,978 crore, taking the total shareholder payout to ₹17,029 crore, which is 2.6 times higher than the H1 profit.
In June, Wipro completed the buyback at a 23% premium to the prevailing market price. The company said it was returning excess cash on its balance sheet after ensuring that the net cash available following the buyback would be sufficient to support its mergers and acquisitions (M&A) ambitions and large strategic deals.
Wipro generated ₹8,592 crore in cash from operating activities in the six months ended September 2026, compared with ₹7,499 crore in the corresponding period last year.
The buyback was approved by the company’s board on April 16, 2026. The company’s earlier share buybacks were conducted in FY17 ( ₹2,500 crore), FY18 ( ₹11,000 crore), FY21 ( ₹9,500 crore) and FY24 ( ₹12,000 crore).
The company’s share buyback weighed on its investment portfolio, reducing the interest income it could earn. Companies generate interest by investing surplus cash in deposits, bonds, and other financial instruments. When Wipro used a portion of its cash to buy back shares, its investment portfolio shrank, resulting in lower interest income.
Chief Financial Officer Aparna Iyer said that net other income, which primarily includes interest income, declined 68% sequentially due to the reduction in the company's investment portfolio after the completion of its share buyback in June 2026.
"As a result of the lower income, our net income was at 32 billion rupees for the quarter," she said.
"During the six months ended September 30, 2026, the Company concluded the buyback of 600,000,000 equity shares (at a price of 250 per equity share) as approved by the Board of Directors on April 16, 2026. This has resulted in a total cash outflow of ₹15,051 crore, the company said in its September filing.
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Wipro posted revenue from operations of ₹24,752.7 crore, marking a 1.1% increase from ₹24,478.6 crore in the June quarter and a 9% rise from ₹22,697.3 crore in the year-ago quarter.
In constant currency terms, revenue remained flat quarter-on-quarter (QoQ) but increased by a modest 0.6% YoY. The IT services operating margin for Q2 FY27 stood at 16.5%, up 0.5 percentage points QoQ but down 0.2 percentage points YoY.
Revenue from the IT services segment stood at $2,611.5 million, down 0.1% QoQ but up 0.3% YoY. The company expects revenue from its IT services business to range between $2,571 million and $2,625 million in Q3 FY27. This translates into sequential revenue guidance of -1.5% to +0.5% in constant currency terms.
Its total deal bookings fell to $2.6 billion in the September quarter from $4.7 billion a year earlier, marking a sharp decline. Bookings also fell 22.9% QoQ in constant currency terms. Large deal bookings came in at $0.7 billion, down 58.6% QoQ in constant currency terms.
A Ksheerasagar
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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