Wipro Ltd. American Depositary Receipt (ADR) crashed by nearly 7% after the tech giant reported its Q4 results for FY26. Wipro’s ADR underperformed its rival Infosys ADR which surged by 0.5%. The performance turned steeply bearish despite Wipro announcing a buyback plan of Rs 15,000 crore at an issue price of Rs 250. Why did Wipro ADR plunge?
Wipro ADR:
During the trading session of April 16, Wipro’s ADR crashed by at least 6.82% to hit an intraday low of $2.115. After the closing bell, Wipro’s ADR closed near its day’s low to $2.160 apiece, down by 4.9%.
Wipro ADRs are listed on NYSE.
Why Wipro’s ADR Dropped?
The performance turned bearish due to Wipro’s expectations of de-growth in Q1FY27.
The company expects IT services business revenue in the range of $2,597 million to $2,651 million. This translates to sequential guidance of (-)2.0% to 0% in constant currency terms.
Also, during Q4FY26, Wipro posted a consolidated revenue of Rs 3,501.8 crore, registering a decline of 1.9% compared to PAT of Rs 3,569.6 crore in Q4FY25. Meanwhile, Wipro’s Q4FY26 PAT surged by 12.3% from net profit of Rs 3,119 crore in Q3FY26.
But, Wipro also said if adjusted to the impact of labour code changes, then net income for the quarter under review stood at Rs 3,490 crore, which would squeeze the QoQ growth to 3.7%.
In the top-line front, posted a revenue of Rs 24,236.3 crore in Q4FY26, registering an increase of 2.9% sequentially and upside of 7.7% YoY. In terms of dollar, IT services segment revenue was at $2,651.0 million, increase of 0.6% QoQ and 2.1% YoY. While the non-GAAP constant- currency IT Services segment revenue increased 0.2% QoQ and decreased 0.2% YoY.
Wipro share price on BSE and NSE will react to Q4 earnings on April 17. Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth said, “Wipro will be in focus after announcing a Rs 15,000 crore buyback at ₹250 per share post market hours, even as its quarterly earnings reflected a marginal decline in net profit. The buyback signals management confidence, but sustainability of growth and commentary on demand will remain key for the IT sector.”
Wipro Buyback 2026:
ADR investors will be eligible to participate in Wipro’s upcoming buyback plan.
Wipro has proposed a buyback offer of at least 60 crore equity shares worth Rs 15,000 crore. The issue price has been fixed at Rs 250 per share with a face value of Rs 2 each. The buyback offer represents at least 5.7% of the total paid-up equity share capital of the company.
The last buyback of Wipro was in April 2023, where it bought back shares worth Rs 12,000 crore at Rs 223 per share, which was at a premium of 18% for investors. Before that Wipro carried buyback of Rs 9,500 crore in October 2020 and Rs 10,500 crore in April 2019.
As per filing, Wipro has 25,97,53,542 ADR investors. ADR investors account for 2.48% stake in the company.