Quarterly Financial Results

Wipro Q1 FY27 Results: Revenue Rises 10.6% YoY, Large Deal Bookings Jump 12.9%; Margin Under Pressure

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Wipro Limited reported its financial results for the quarter ended June 30, 2026 (Q1 FY27), delivering double-digit revenue growth in reported terms while maintaining modest constant currency growth in its IT Services business. Large deal bookings strengthened significantly during the quarter, supported by multiple AI-led transformation engagements across industries. However, operating margins moderated due to continued investments in strategic growth initiatives. The Board also declared an interim dividend of ₹2 per equity share.

PRICE-SENSITIVE TRIGGER

Event: Wipro announced its financial results for the quarter ended June 30, 2026 (Q1 FY27) under IFRS.

Type: Quarterly Financial Results

Impact: Positive

Immediate Effect:

Gross revenue increased both sequentially and year-on-year.
Large deal bookings recorded strong sequential growth.
Operating margin declined due to continued investments.
Net profit remained broadly stable on a yearly basis.
Interim dividend of ₹2 per share announced.
Q2 FY27 guidance indicates a muted near-term revenue outlook.

Financials:

Key Financial Metrics:

Revenue: ₹24,478.6 crore (₹244.8 billion), ▲ 10.6% YoY | ▲ 1.0% QoQ
IT Services Revenue: US$2,614.5 million, ▲ 1.0% YoY | ▼ 1.4% QoQ
Constant Currency IT Services Revenue: ▲ 0.9% YoY | ▼ 1.2% QoQ
Operating Margin (IT Services): 16.0%, down 120 bps YoY and 130 bps QoQ
Net Profit (PAT): ₹3,356.3 crore (₹33.6 billion), ▲ 0.6% YoY | ▼ 4.7% QoQ
EPS: ₹3.20, ▲ 0.6% YoY | ▼ 4.2% QoQ
Operating Cash Flow: ₹3,288 crore, representing 98% of net income
Free Cash Flow: ₹2,961.7 crore (88.2% of net income)
Large Deal Bookings: US$1.626 billion, ▲ 12.9% QoQ
Total Bookings: US$3.37 billion, ▼ 2.4% QoQ (constant currency)
Voluntary Attrition: 13.9%
Interim Dividend: ₹2 per equity share

Highlight:

Large deal bookings increased 12.9% sequentially to US$1.626 billion, reflecting continued enterprise demand for AI-powered digital transformation despite a softer near-term revenue outlook.

What Happened ?

Wipro reported a mixed first quarter for FY27, balancing steady revenue growth with margin pressures. Reported gross revenue rose 10.6% year-on-year to ₹24,478.6 crore, while the core IT Services business delivered modest constant currency growth of 0.9% YoY.

A major highlight was the significant improvement in large deal bookings, which increased nearly 13% sequentially to US$1.626 billion. During the quarter, the company secured multiple strategic AI-led transformation contracts spanning manufacturing, healthcare, insurance, technology, retail, supply chain, financial services, chemicals and energy sectors.

Despite healthy deal momentum, profitability softened as Wipro continued investing in AI capabilities, talent, and strategic growth priorities. Consequently, IT Services operating margin declined to 16.0%, while quarterly net profit slipped sequentially though remaining marginally higher compared with the previous year.

The Board approved an interim dividend of ₹2 per share, and management guided Q2 FY27 IT Services revenue to a range of US$2.574–2.627 billion, implying sequential constant currency growth between -1.5% and +0.5%, indicating cautious demand expectations for the upcoming quarter.

key details

Business Performance & Strategic Highlights:

Wipro secured 12 large strategic deals during the quarter across manufacturing, healthcare, financial services, insurance, retail, energy, chemicals, logistics, and technology sectors.
The company continued expanding its AI-first strategy, integrating AI into enterprise modernization, cloud transformation, cybersecurity, engineering, and business process services.
Management highlighted continued investments in consulting capabilities, platform engineering, and industry-specific AI solutions to strengthen long-term competitiveness.
Operating cash flow remained robust at 98% of net income, reflecting continued cash generation despite margin pressure.
Free cash flow conversion remained healthy at 88.2% of net income, supporting shareholder returns and future investments.
Voluntary attrition declined to 13.9%, indicating improving employee retention.
The Board declared an interim dividend of ₹2 per equity share for FY27.
Wipro guided Q2 FY27 IT Services revenue between US$2.574 billion and US$2.627 billion, translating into constant currency growth of -1.5% to +0.5%, suggesting a cautious near-term demand environment.
The company maintained its focus on profitable growth while continuing investments in AI, cloud, consulting, engineering services, and strategic talent development.

Note:

While revenue growth remained positive and large deal bookings improved significantly, management expects near-term revenue growth to remain relatively subdued as reflected in its Q2 guidance.

Risk Analysis

Summary:

Wipro continues to execute well on large deal wins and AI-led transformation opportunities. However, the company’s short-term growth outlook remains moderate due to cautious client spending and ongoing investments impacting margins.

Key Risks:

Q2 FY27 guidance indicates limited sequential revenue growth.
IT Services operating margin declined to 16.0%.
Total bookings fell modestly on a constant currency basis despite stronger large deal wins.
Continued investments in AI, consulting and strategic capabilities could keep margins under pressure in the near term.
Macroeconomic uncertainty continues to influence discretionary enterprise technology spending.

Worst Case:

If enterprise technology spending weakens further or large deal conversions are delayed, revenue growth could remain subdued while continued investments pressure operating margins.

Risk Level: Medium

Company Commentary

Strong large deal momentum demonstrates continued client confidence in Wipro’s AI-led transformation capabilities.
Artificial Intelligence remains central to the company’s long-term growth strategy across consulting, engineering, cloud, cybersecurity and business operations.
Wipro continues to invest in talent, innovation and delivery capabilities to enhance long-term competitiveness.
Management remains focused on balancing growth investments with disciplined execution and cash generation while creating sustainable shareholder value.

Official Exchange Filing: Wipro Limited

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