FILE PHOTO: Figurines with computers and smartphones are seen in front of Wipro logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
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Dado Ruvic
Wipro began the first quarter of FY26 with a muted performance, attributing it to ongoing macroeconomic challenges. Revenue declined 1.6 per cent sequentially but rose marginally by 0.8 per cent year-on-year, landing within the company’s guided range of -3.5 per cent to -1.5 per cent for the quarter. The company revised its Q2 growth guidance to -1 per cent to 1 per cent.
The company reported revenue of ₹22,134 crore, a decline from ₹22,504 crore in Q4FY25. Net profit dropped to ₹3,330 crore, down 6.7 per cent sequentially, but grew 10.9 per cent YoY. This marks a reversal from the previous quarter, when it had risen to ₹3,569 crore, a 25.9 per cent YoY growth at the time.
IT segment revenue stood at $2,587.4 million in the June-ended quarter, at a decrease of 0.3 per cent QoQ and 1.5 per cent YoY.
Srini Pallia, CEO and Managing Director of Wipro, said, “We started the quarter facing significant macro uncertainty, which kept overall demand muted. Our clients prioritised initiatives with immediate impact, focusing on cost optimisation and vendor consolidation. Simultaneously, they accelerated their AI, data and modernisation programmes. We saw a trend of many AI projects moving to scale and production. The large deals we closed this quarter and last quarter, with a strong pipeline, put us in a good position for the second half of the year.”
Deal booking rises
On the brighter side, Wipro’s large deal booking was $2.7 billion, and grew by 131 per cent YoY. Last quarter, it stood at $1.8 billion. The total bookings stood at $5 billion in Q1.
Aparna Iyer, CFO, Wipro Limited
Aparna Iyer, Wipro’s Chief Financial Officer, said that several of the deals won include a mix of extending existing work and elements of expansion. Due to their nature, these deals are expected to take around 6–8 quarters to fully ramp up. She added that this positions the company more strongly, emphasising that Wipro now has the necessary deals in place and the focus has shifted to execution.
“We expanded our operating margins by 80 basis points on a YoY basis. Our cash flow conversion remained strong, with operating cash flows being at 123 per cent of our net income. Margins have been in a narrow band. Last quarter, it stood at 17.5 per cent, and this quarter it came in at 17.3 per cent, reflecting a 20-basis points decline. Forex and utilisation have been somewhat flat. The revenue decline has been offset through operational improvements,” she commented.
Bullish on BFSI
The CEO expressed optimism about growth in the BFSI vertical, highlighting that Wipro’s consulting arm, Capco, achieved 6 per cent year-on-year growth despite a highly uncertain environment, particularly within BFSI. He also noted that the company secured two mega deals in the vertical during the quarter, adding that despite ongoing uncertainties, BFSI clients remain committed to investing in technology.
However, the BFSI segment registered a decline of 2 per cent quarter-on-quarter and 2.5 per cent year-on-year. The Consumer, Energy, Manufacturing, and Resources verticals remained largely subdued, while the Technology, Communications, and Healthcare segments saw slight improvements.
Biswajit Maity, Senior Principal Analyst at Gartner, said that Wipro’s performance during the quarter reflected the ongoing market challenges.
“The decline was largely due to cautious discretionary spending amid uncertain macroeconomic conditions, including global uncertainties and stricter budget controls in key markets. Nevertheless, there are positive signs for future financial performance, underpinned by a healthy pipeline of deals. In Q1, Wipro secured a remarkable 131 per cent YoY increase in large deal bookings, which demonstrates their effectiveness in capturing major, multi-year contracts that contribute to stable revenues and improved growth prospects. Wipro is emphasising the pursuit of large contracts, building stronger client partnerships, enhancing its capabilities in AI and GenAI, and restructuring its operations to better respond to shifting market dynamics,” he explained.
The company’s headcount declined marginally to 2,33,232, compared to 2,33,346 in the previous quarter and 2,34,391 in Q1 FY25. It has set a goal of hiring 10,000 freshers during the fiscal year, based on specific demand requirements.
The company’s shares closed at ₹260.25 on the BSE, down by 0.93 per cent today
Published on July 17, 2025