Wipro returned more than ₹17,000 crore to its shareholders in the first half of FY27, exceeding its net profit for the period by 2.6 times, the company announced this week. The Bengaluru-based software firm posted a net profit of ₹3,200 crore in the September quarter, down 2% year-on-year and 9% from the previous quarter, according to livemint.com.
The company executed a share buyback in June, purchasing 60 crore shares at ₹250 each, resulting in a cash outflow of ₹15,051 crore. Alongside the buyback, Wipro paid dividends totaling ₹1,978 crore, bringing the total shareholder payout to ₹17,029 crore for the half-year. The buyback was completed at a 23% premium to the prevailing market price, reflecting Wipro's strategy to return excess cash while maintaining sufficient liquidity for mergers and acquisitions and strategic deals.
Wipro's net profit for the first half of FY27 stood at ₹6,556 crore, while cash generated from operating activities rose to ₹8,592 crore, compared with ₹7,499 crore in the same period last year. The company's substantial shareholder returns come amid a stock performance that is on track for its steepest annual decline in three years, highlighting a focus on rewarding investors despite market challenges. This payout level is notable in the Indian IT sector, where buybacks and dividends at multiples of net profit are relatively rare.
The company’s next financial update will be closely watched to assess how its strategy of returning cash aligns with its growth and acquisition plans. Wipro’s buyback and dividend payments in H1 FY27 total ₹17,029 crore, as confirmed in its September-quarter results disclosed this week.