IT major’s June-quarter revenue rose 10.6% YoY but missed Street estimates; Q2 FY27 guidance stays in a narrow band as margins contract.
Key Takeaways
- Net profit rose 0.6% YoY to Rs 3,352 crore, but fell about 4.3% sequentially from Rs 3,502 crore in Q4 FY26.
- Revenue grew 10.6% YoY to Rs 24,479 crore, missing the Rs 24,776 crore Reuters-LSEG estimate.
- Board declared an interim dividend of Rs 2 per equity share.
- IT services operating margin contracted 130 bps QoQ to 16%, hit by wage hikes and AI spend.
- Total bookings at $3.37 billion, down 2.4% QoQ in constant currency; large deal bookings up 12.9% QoQ to $1.63 billion.
- Q2 FY27 guidance implies sequential constant-currency growth of between a 1.5% decline and 0.5% growth.
Wipro Limited on Thursday reported a 0.6% year-on-year rise in consolidated net profit to Rs 3,352 crore for the April-June quarter, while revenue grew 10.6% YoY to Rs 24,479 crore, falling short of the Rs 24,776 crore average estimate compiled by Reuters-LSEG. The board also approved an interim dividend of Rs 2 per equity share.
Segment and Margin Details
In dollar terms, IT services revenue stood at $2.61 billion, down 1.4% quarter-on-quarter and up 1% YoY; in constant currency, the segment slipped 1.2% sequentially and rose 0.9% YoY. IT services operating margin fell to 16%, down 130 basis points sequentially and roughly 120 basis points YoY, as wage increments, a softer deal mix, and continued AI investment weighed on profitability.
Bookings and Cash Flow
Total bookings came in at $3.37 billion, down 2.4% sequentially in constant currency from $3.46 billion in Q4 FY26, while large deal bookings rose 12.9% QoQ to $1.63 billion. Operating cash flow was Rs 3,288 crore, equal to 98% of net income, an improvement from 90.1% in the March quarter, while voluntary attrition edged up to 13.9% (TTM) from 13.8% in Q4 FY26.
The sequential picture is softer than the YoY numbers suggest: Wipro had posted Rs 3,502 crore profit on Rs 24,236 crore revenue in Q4 FY26, per the company’s own disclosures, meaning Q1 profit fell roughly 4.3% quarter-on-quarter even as topline growth held near 1%.
AI Pivot Frames the Quarter
The results land a day after Wipro’s 80th AGM on July 15, where chairman Rishad Premji and CEO Srini Pallia detailed the company’s AI strategy, including a new AI-Native Business and Platforms unit under Nagendra Bandaru and a $500 million Wipro Ventures allocation for AI, data, and security startups.
The quarter also saw Wipro complete its Rs 15,000 crore share buyback in mid-June and close the Mindsprint acquisition (formerly Olam Group’s IT arm), alongside a newly launched Applied AI Center of Excellence built on Anthropic’s Claude models.
Pallia said client conversations were shifting from routine technology modernisation toward AI-enabled operating models aimed at improving quality, resilience and productivity. CFO Aparna Iyer said the company would keep investing in talent and strategic priorities despite near-term margin volatility.
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Q2 FY27 Outlook
For the July-September quarter, Wipro guided for IT services revenue of $2.57-2.63 billion, implying sequential constant-currency growth between a 1.5% decline and 0.5% growth, a narrow band reflecting sector-wide caution, with peers also flagging muted near-term demand.
Wipro shares closed 1.75% higher at Rs 177.7 on the NSE ahead of the results, though the stock remains nearly 35% below its 52-week high of Rs 273.1.
NiftyTrader Desk View
| Stock | Key Technical Trigger | Trader View |
|---|---|---|
| Wipro | Q1 profit +0.6% YoY to Rs 3,352 crore; revenue +10.6% YoY but below Street estimate; margin down 130 bps QoQ to 16%; Rs 2/share interim dividend declared | Q2 FY27 guidance of -1.5% to +0.5% CC growth keeps the near-term band narrow; deal ramp-up pace and AI-native unit traction are the key monitorables into the September quarter |
Source: Company Q1 FY27 disclosures; NSE
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Bottom Line
Q1 FY27 shows Wipro’s familiar pattern, steady YoY growth in profit and revenue, but sequential softness and margin pressure that keep near-term movement tied to execution on large deals and the AI-native pivot rather than the headline print alone. The Q2 guidance band signals management isn’t calling an inflection yet, leaving deal ramp-up and the European business as the data points to watch next quarter.
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