Indian companies' buyback frenzy has hit a three-year high, with 22 companies announcing share repurchase plans in 2026 so far. Nearly 10 firms unveiled buyback offers in the past two months alone, signalling growing confidence among corporates despite heightened market volatility.
Data from Prime Database shows that companies have announced buybacks worth around ₹25,000 crore this year, the highest since 2023, when the total stood at ₹48,452 crore. The figure was ₹19,175 crore in 2025 and ₹13,539 crore in 2024.
The biggest buyback announcement this year has come from IT major Wipro, which plans to repurchase shares worth ₹15,000 crore. The company has fixed June 5 as the record date for the offer.
Auto major Bajaj Auto has also announced a ₹5,633 crore buyback alongside its March quarter results. Pharma company Zydus Lifesciences plans to buy back shares worth ₹1,100 crore.
Other companies that have announced buybacks this year include Rolex Rings, TeamLease Services, Dhanuka Agritech, Kajaria Ceramics, Cybertech Systems, Cyient and Gandhi Special Tubes. Most of the offers are through the tender route.
Wipro — ₹15,000 crore
Bajaj Auto — ₹5,633 crore
Zydus Lifesciences — ₹1,100 crore
Cyient — ₹720 crore
Kajaria Ceramics — ₹297 crore
TeamLease Services — ₹238 crore
Rolex Rings — ₹180 crore
Gandhi Special Tubes — ₹78 crore
Dhanuka Agritech — ₹70 crore
Cybertech Systems & Software — ₹14 crore
Analysts say companies typically use buybacks as a signalling tool during periods of market volatility or stock-specific weakness. However, this year’s surge is also being driven by changes in taxation announced in the Union Budget 2026.
Under the revised rules announced by Finance Minister Nirmala Sitharaman on February 1, buyback proceeds are now taxed under capital gains rules instead of being treated entirely as dividend income taxed at individual slab rates.
According to Vinit Bolinjkar of Ventura Securities, the revised structure offers a meaningful tax advantage for retail investors and makes buybacks a more efficient route for returning capital.
He added that companies are increasingly using buybacks to optimise balance sheets and reward shareholders without permanently increasing dividend commitments.
Another major reason behind the buyback trend is the lack of attractive reinvestment opportunities.
Sunny Agarwal of SBI Securities, said many large-cap companies — especially in IT services, FMCG and select industrial sectors — have generated strong free cash flows while facing moderate demand visibility and delayed capital expenditure cycles.
In such a scenario, companies prefer returning surplus cash to shareholders rather than parking funds in low-yield investments.
Experts say buybacks, particularly through the tender route at a premium, are often interpreted as a sign that management believes the stock is undervalued.
Such announcements also indicate confidence in future earnings visibility and capital allocation discipline. This trend has been particularly visible in the IT sector, where buybacks have frequently coincided with earnings slowdowns or valuation corrections.
However, analysts caution that investors should not treat buybacks as a substitute for long-term earnings growth.
“Markets increasingly distinguish between companies using buybacks as a disciplined capital allocation strategy and those using them defensively to support valuations amid slowing growth,” Agarwal said.
According to analysts, buybacks tend to create lasting value only when backed by healthy business fundamentals and sustained earnings growth.
(By arrangement with livemint.com)