Wipro Q1 profit falls over 4 pc, forecasts flat to weak Q2 IT services revenue
Mumbai, July 16
IT major Wipro on Thursday reported a decline in its net profit for the first quarter of FY27, with consolidated PAT declining over 4 per cent sequentially despite a marginal rise in revenue.
The company's consolidated net profit declined 4.7 per cent quarter-on-quarter (QoQ) to Rs 3,352 crore in the April-June quarter, although PAT was flat from a year ago.
Meanwhile, gross revenue rose 1 per cent sequentially and 10.6 per cent year-on-year (YoY) to Rs 24,480 crore.
At the operating level, 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 rose 3.6 per cent sequentially to Rs 3,290 crore and accounted for 98 per cent of the company's net income during the quarter.
The company's voluntary attrition rate stood at 13.9 per cent on a trailing 12-month basis.
Looking ahead, Wipro expects revenue from its IT services business to be in the range of a 1.5 per cent decline to growth of 0.5 per cent.
According to Srini Pallia, CEO and Managing Director, "Clients are moving beyond technology modernisation 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, Pallia added.
Apart from earnings, the board also declared an interim dividend of Rs 2 per equity share.
Shares of Wipro on Thursday ended at Rs 177.80, an increase of 1.83 per cent on the BSE.
The IT stock has declined 33.56 per cent in the last six months and 32.38 per cent over the past year. It plunged by 38.49 per cent over the last five years.
— IANS
Reader Comments
The CEO's focus on AI is good, but Wipro has been late to the AI game compared to Infosys and TCS. The stock has fallen 33% in six months - that's a big red flag for retail investors like me who bought at higher levels.
I've been holding Wipro for 5 years. The stock is down 38% in that period! Meanwhile TCS and Infosys have given decent returns. Management needs to seriously look at cost optimization and client acquisition. The operating margin drop is worrying.
Attrition at 13.9% is relatively stable but still high. Wipro needs to focus on employee retention and skill development, especially in AI/ML areas. The voluntary attrition number indicates some talent flight to competitors or startups.
The AI pivot is good but execution matters. In 2025-26, every IT company is talking about AI. Wipro needs to show real client wins, not just buzzwords. The guidance of 1.5% decline to 0.5% growth is very cautious - they're not confident about the near term.
As a Wipro employee in the US consulting team, I can say the business environment is tough. Clients are cutting budgets and extending decision cycles. The CEO's AI focus is genuine but it will take 2-3 quarters to show results. Meanwhile, margins will remain under pressure.
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