Share Buybacks By India Inc Climb To Three-Year High In 2026

Indian companies have stepped up their share repurchase activity in 2026, announcing buybacks worth ₹25,000 crore so far this year, the highest since 2023.

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Data available till May 2026 showed 22 listed firms announced buyback programmes during the year, against 14 firms in 2025, which collectively proposed repurchases worth ₹19,711 crore. In 2024, nearly 48 companies made buybacks but their aggregate value was lower at ₹13,539 crore.

The latest increase in buyback value has come against a backdrop of continued weakness in domestic equity markets and changing regulatory and taxation norms for share repurchases.

Wipro Leads Buyback Activity of the Year

Among the top announcements this year, Wipro announced a buyback of ₹15,000 crore, which constituted a large chunk of the overall value announced in 2026.

Bajaj Auto followed with a ₹5,632 crore repurchase plan, while Zydus Lifesciences announced a buyback worth ₹1,100 crore. Other major companies that unveiled repurchase programmes include Aurobindo Pharma at ₹800 crore and Cyient at ₹720 crore.

Several mid-sized and smaller firms also joined the trend. Kajaria Ceramics announced a ₹297 crore buyback, while companies such as Welspun Living, CMS Info Systems, Garware Technical Fibres, Go Fashion India, Windlas Biotech, Onward Technologies, and Ema Partners India disclosed smaller buyback proposals ranging from ₹7 crore to ₹250 crore.

Regulatory Changes Support Activity

The rise in buyback programmes comes amid proposed reforms by the Securities and Exchange Board of India (SEBI) and proposed amendments under the Companies Act Amendment Bill 2026.

SEBI is understood to be examining a proposal under which listed companies could conduct two buybacks in a financial year. The regulator is also mulling procedural simplification by doing away with mandatory appointment of merchant bankers for execution of buyback.

Other proposals include reinstating open-market buybacks and permitting use of electronic communications for additional shareholder-related disclosures in connection with repurchase offers.

Tax Structure Sees Revision

Changes in taxation rules have also altered the structure of buyback transactions. From April 1, 2026, proceeds from buybacks are being treated as capital gains in the hands of shareholders instead of dividend income. Promoter shareholders are also subject to an additional 12% surcharge on such gains under the revised framework.

The change has shifted part of the tax burden from companies to shareholders and may influence how promoter-led firms structure future capital return plans.

Market Weakness Adds To Trend

Indian equity benchmarks have been under pressure the past few weeks. The Sensex and Nifty are down about 12% and 10% respectively in the period covered by the data. Broader measures have also shown weaker returns.

Companies often use buybacks to put idle cash to work, boost their earnings-per-share numbers and reward shareholders when the market is sluggish.

The recent spurt in buyback activity has been largely in sectors like information technology, pharmaceuticals, autos and consumer-facing businesses, where companies still maintain relatively strong balance sheets despite broader market volatility.