Wipro Q1 net profit falls 4.7% sequentially; declares Rs 2 interim dividend
New Delhi, July 16
Wipro Ltd on Thursday reported a 4.7 per cent sequential decline in net income for the quarter which ended June 30 and announced an interim dividend of Rs 2 per equity share, according to the company's Q1 FY27 earnings release.
The company's net income stood at Rs 33.6 billion (approx. USD 354.6 million) during the quarter, down 4.7 per cent quarter-on-quarter but up 0.6 per cent year-on-year. Gross revenue rose marginally by 1 per cent sequentially and 10.6 per cent annually to Rs 244.8 billion (approx. USD 2,585.9 million), while IT services revenue came in at USD 2.61 billion, down 1.4 per cent sequentially but up 1 per cent from a year earlier.
For the September quarter, Wipro said it expects IT services revenue in the range of USD 2.574 billion to USD 2.627 billion, translating into sequential guidance of (-)1.5 per cent to (+)0.5 per cent in constant currency terms.
Commenting on demand trends, Chief Executive Officer and Managing Director Srini Pallia said, "Clients are moving beyond technology modernization to AI-enabled operating models that improve quality, resilience, and productivity. Wipro's consulting-led, AI-powered approach helps clients embed AI at the core of their business, and these engagements reflect both the breadth of our capabilities and the trust clients place in us as a transformation partner."
Chief Financial Officer Aparna Iyer said the company remains focused on investing for long-term growth despite near-term pressure on margins.
"As we navigate an evolving technology landscape, we remain focused on investing in our people and strategic priority areas. While these investments may create some near-term margin volatility, it sets a strong foundation for future growth. Cash flow remained robust, with operating cash flow at 98% of net income for the quarter. We are also pleased to share that the Board has declared an interim dividend of Rs 2 per share," she said.
Wipro's IT services operating margin stood at 16 per cent during the quarter, down 1.3 percentage points sequentially and 1.2 percentage points year-on-year. Operating cash flow increased 3.6 per cent sequentially to Rs 32.9 billion, equivalent to 98 per cent of net income. Voluntary attrition over the trailing 12 months stood at 13.9 per cent.
On the deal front, Wipro reported total bookings of USD 3.37 billion during the quarter. Large deal bookings rose 12.9 per cent sequentially in constant currency to USD 1.63 billion, with the company signing 13 large deals. Several of these were AI-led engagements, including an AI-first enterprise transformation programme for a global technology company, an AI-powered IT modernisation contract for a global chemicals company, and an expanded AI-driven business transformation mandate for a US-based specialty chemicals company.
— ANI
Reader Comments
Revenue up but profit down... typical IT margin pressure story. The AI pivot is real though—Wipro's cosnulting-led approach makes sense given Srini Pallia's background. But I worry about attrition at 13.9%. Talent retention will be key if they want to sustain these AI deals.
Not bad numbers considering the global macro uncertainty. Operating cash flow at 98% of net income is strong. The 1.4% sequential drop in IT services revenue is concerning, but the large deal bookings growth shows clients are still investing. Wipro needs to manage that margin pressure better.
Arre, Rs 2 dividend is good for small investors like me! But seriously, 16% margin is decent in this climate. The AI-led transformation deals sound exciting—hope this translates into real job creation here in India rather than just cost cutting. 🇮🇳
Margins down 1.3% QoQ—that's the worrying bit. Investment for growth is fine, but Aparna Iyer's comment about "near-term margin volatility" sounds like a euphemism for continued pressure. Let's see if the September quarter guidance pans out. At least the AI deals are a bright spot.
Yaar, every quarter it's the same story with Indian IT—margins down, guidance cautious. Wipro at least has some AI deals to show. But I'm tired of hearing about "AI-enabled operating models" without seeing real impact on local hiring. Let's see if this translates to more campus placements...
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.