--- title: "India Inc's buyback boom hits a three-year high, but will the momentum last?" type: "News" locale: "en" url: "https://longbridge.com/en/news/286995240.md" description: "India Inc has seen a resurgence in buybacks, with 22 companies announcing repurchases worth Rs 25,000 crore as of May 2026, the highest since 2023. Wipro leads with a Rs 15,000 crore buyback. Regulatory reforms by SEBI and changes in taxation are key drivers. While buybacks signal strong cash flows and return of capital to shareholders, experts warn they may also indicate caution in expansion plans amid uncertain growth." datetime: "2026-05-20T02:43:18.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286995240.md) - [en](https://longbridge.com/en/news/286995240.md) - [zh-HK](https://longbridge.com/zh-HK/news/286995240.md) --- # India Inc's buyback boom hits a three-year high, but will the momentum last? India Inc is back in buyback mode. After two consecutive years of restraint, corporate India has returned to share repurchases with renewed vigour, and the numbers tell a compelling story. As of May 2026, as many as 22 companies have announced buybacks worth a combined Rs 25,000 crore — the highest since 2023, when 48 firms mopped up shares worth Rs 48,079 crore. Analysts expect the momentum to hold through the rest of the year, even as Indian equity markets remain under pressure. The revival follows a prolonged period of subdued activity. In 2025, only 14 companies announced buybacks totalling Rs 19,711 crore. The year before, 2024, saw 48 firms participate, but their combined repurchase size was a modest Rs 13,539 crore — underscoring not just a recovery in volume in 2026, but a sharp jump in deal sizes as well. Wipro leads the pack by a wide margin, having announced a buyback worth Rs 15,000 crore — the single largest so far this year. Bajaj Auto follows with a Rs 5,632 crore repurchase, while Zydus Lifesciences has announced a buyback of Rs 1,100 crore. Aurobindo Pharma and Cyient have committed Rs 800 crore and Rs 720 crore respectively, with Kajaria Ceramics adding Rs 297 crore to the tally. A clutch of smaller firms — including Welspun Living, Rolex Rings, CMS Info Systems, Garware Technical Fibres, Go Fashion India, Matrimony.com, Windlas Biotech, Sarla Performance Fibres, Jagsonpal Pharmaceuticals, Fairchem Organics, Puretrop Fruits, Onward Technologies, Cybertech Systems and Software, and Ema Partners India — have announced buybacks ranging between Rs 7 crore and Rs 250 crore, broadening participation well beyond large-caps. A key driver behind the surge is a sweeping overhaul of the regulatory framework. A senior official at a Mumbai-based corporate compliance firm pointed to the Securities and Exchange Board of India's proposed reforms as a significant catalyst. The regulator is considering permitting two buybacks in a financial year, aligning with a similar proposal under the Companies Act Amendment Bill 2026. SEBI is also working to simplify the process by removing the mandatory requirement for a merchant banker, instead placing responsibility on the company, the stock exchange, and the statutory auditor. The regulator is additionally proposing to reintroduce open-market buybacks — a route that had been discontinued — and to mandate electronic communication with shareholders for all buyback-related disclosures. A significant shift in taxation has equally shaped corporate thinking. With effect from April 1, 2026, buyback proceeds are now taxable as capital gains in the hands of shareholders, replacing the earlier treatment as dividend income. Promoter shareholders, however, attract an additional surcharge of 12 percent on such capital gains — a distinction that could influence how promoter-heavy companies weigh their capital return options going forward. While regulatory easing has helped, market experts caution against attributing the buyback surge solely to SEBI's reforms. Ajay Kejriwal, Executive Director at Choice Broking, said the real trigger lies in capital allocation strategy and valuation comfort. "The broader trigger appears to be strong corporate cash flows amid limited near-term capital expenditure opportunities," he said. Companies across information technology, pharmaceuticals, and automobiles are sitting on sizable cash reserves at a time when global growth visibility remains uncertain. Buybacks, in this environment, serve a multi-pronged purpose — returning surplus capital to shareholders, improving earnings per share and return ratios, and signalling that management believes current market prices do not fully reflect the company's intrinsic worth. Indian markets have seen sharp swings through this period. The benchmark Sensex and Nifty have fallen 12 percent and 10 percent respectively, while the broader BSE 150 MidCap and BSE 250 SmallCap indices declined 1.1 percent and 0.4 percent — making buybacks an effective tool to restore investor confidence and shore up valuations. The trend is expected to continue, particularly among cash-rich businesses with stable balance sheets and moderate growth requirements. However, experts offer a nuanced reading — a rising tide of buybacks can equally signal caution, with companies preferring to return cash rather than commit to aggressive expansion or fresh investments. In that sense, the current buyback cycle reflects disciplined balance-sheet management in a slower, more uncertain growth environment, rather than outright confidence in a near-term economic upcycle, experts added. ### Related Stocks - [WIT.US](https://longbridge.com/en/quote/WIT.US.md) ## Related News & Research - [Olam completes $492m Mindsprint sale to Wipro](https://longbridge.com/en/news/286835262.md) - [BSE set to enter Nifty 50 as Wipro faces ouster in September rejig; one-way flow pegged at $639 million](https://longbridge.com/en/news/286686947.md) - [BSE may get Nifty 50 berth in September rebalancing; stock gains 2%](https://longbridge.com/en/news/286855600.md) - [Insider Transaction: Chandrasekhar Aparna Iyer Sells $159K Worth Of Wipro Shares](https://longbridge.com/en/news/286284273.md) - [India's top IT firms pay record Rs 1 lakh crore dividend even as stocks take a beating](https://longbridge.com/en/news/286686949.md)