Wipro Q1 Results: Profit Falls 7%; Q2 Revenue Guidance At -1% To 1%

Wipro Ltd. has issued a cautious revenue guidance for the second quarter of the fiscal, even as deal wins show encouraging momentum.

The Bengaluru-based IT major posted its first-quarter results on Thursday. The company recorded a decrease in net profit in the first quarter of fiscal 2026, but met analysts' estimates.

The Indian IT major saw its bottom line fall 7% over the previous three months to Rs 3,336 crore in the quarter ended June, according to an exchange filing. That compares with the Rs 3,588-crore consensus estimate of analysts tracked by Bloomberg.

The company expects revenue from its IT services business to be in the range of $2,560 million to $2,612 million for the second quarter 2026, reflecting a sequential growth guidance of -1% to +1% in constant-currency terms.

This comes after a sequential decline of 2% in constant-currency revenue during the first quarter, indicating continued softness in client spending across some verticals.

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• Revenue down 1.65% to Rs 22,134 crore versus Rs 22,504.2 crore (Estimate: Rs 22,078 crore).

• EBIT decreased 9.09% to Rs 3,548 crore versus Rs 3,902 crore (Estimate: Rs 3,783 crore).

• EBIT margin contracted 128 basis points to 16.02% versus 17.3%. (Estimate: 17.1%).

• Net profit fell 7.02% to Rs 3,336 crore versus Rs 3,588 crore (Estimate: Rs 3,249 crore).

Despite the subdued top-line outlook, Wipro reported robust growth in deal wins, offering some comfort to investors. Total deal wins stood at $5 billion, up from $4 billion in the previous quarter — a quarter-on-quarter increase of 25%.

Notably, large deal wins surged 50%, reaching $2.7 billion compared to $1.8 billion last quarter, signalling strong traction in strategic client relationships.

However, client metrics showed some pressure. The number of clients in the $100-million-plus revenue bracket declined to 16 from 17, while the $75-million bracket dropped to 27 from 28, reflecting a slight contraction in high-value client relationships.

On the operational front, net utilisation stood at 85%, down 60 basis points from the previous quarter. Attrition ticked up marginally by 10 basis points to 15.1% in the quarter ended June, suggesting some challenges in workforce stability as the company navigates its ongoing transformation.

Vertical performance was mixed. The banking, financial services and insurance segment saw a decline of 60 basis points, while the consumer sector declined 30 basis points.

On the brighter side, the energy, technology and healthcare sectors delivered strong performances, partially offsetting the weakness in other areas.