- Wipro's Q1 revenue expected to grow 1.62% year-on-year in constant currency terms
- Operating profit and net profit likely to decline due to wage hikes and deal delays
- Attrition estimated at 14.86% with headcount around 249,422 including 18,000 additions
Wipro Ltd. is expected to report a weaker June quarter, with revenue, operating profit and net profit likely to come under pressure as slower discretionary spending, wage hikes and delayed deal conversion weigh on performance.
Bloomberg estimates suggest that revenue in constant currency terms is expected to grow 1.62% year-on-year and 1.33% quarter-on-quarter. Attrition is estimated at 14.86%, while total headcount is seen at 249,422, with net employee additions of about 18,000.
Wipro Q1 Preview - Bloomberg Estimates (Consolidated, QoQ)
Revenue seen 2% higher at Rs 24,730 crore versus Rs 24,236 crore.
EBIT seen 1% lower at Rs 4,113 crore versus Rs 4,164 crore.
EBIT Margin seen 16.63% versus 17.18%.
Profit seen 1% lower at Rs 3,466 crore versus Rs 3,502 crore.
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Brokerages broadly expect Wipro's IT services business to remain at the lower end of the company's guidance range as weak discretionary spending and slower conversion of large deals continue to weigh on organic growth. Investors will closely watch Q2 FY27 guidance, the pace of large deal ramp-ups, commentary on client spending and artificial intelligence adoption, as well as the contribution from recent acquisitions.
Here's what analsyts tracked by Bloomberg are expecting from Wipro Q1 Results
DAM Capital
- Expects revenue to remain within the company's guidance range of 0% to -2% quarter-on-quarter in constant currency.
- Excluding contributions from Olam and Alpha Net Consulting, expects organic revenue to decline 2.2%.
- Says deal-to-revenue conversion remains weak and expects the weakness to continue into the next quarter.
- Margins expected to decline by about 70 basis points due to negative operating leverage and ramp-up of large deals.
- Key focus areas include client-specific challenges and Q2 FY27 guidance.
Jefferies
- Expects IT services revenue to decline 1.7% quarter-on-quarter in constant currency, near the lower end of guidance, including about 65 basis points of inorganic contribution from Mindsprint.
- Expects EBIT margin to decline by about 25 basis points because of wage hikes and acquisition-related costs, partly offset by rupee depreciation.
- Expects Q2 FY27 guidance of -1% to +1% quarter-on-quarter in constant currency.
- Key monitorables include demand outlook, deal bookings, large deal ramp-up, discretionary spending and AI adoption.
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Citi
- Expects IT services revenue to decline 1.4% quarter-on-quarter in constant currency.
- Expects EBIT margin to decline by about 40 basis points due to wage hikes.
- Says the Mindsprint acquisition is not included in its estimates and could add around 65-70 basis points to revenue if completed during the quarter.
- Focus areas include Q2 FY27 guidance, deal total contract value and margin trajectory.
IIFL Capital
- Expects IT services revenue to decline 1.3% quarter-on-quarter in constant currency, or 2.3% organically, placing performance near the lower end of guidance.
- Expects EBIT margin to decline by about 130 basis points due to lower revenue, wage hikes and deal transition costs.
- Key monitorables include demand outlook, Q2 FY27 guidance and AI commentary.
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Nuvama
- Expects IT services revenue to decline 1.5% quarter-on-quarter in constant currency, with about 0.6% growth from the Mindsprint acquisition.
- Expects margins to decline by about 130 basis points because of deal ramp-ups and two months of wage hikes.
- Expects Wipro to guide for Q2 FY27 constant currency revenue growth of -1% to +1%, including inorganic contribution.
CLSA
- Sees no material change in demand conditions.
- Says competitive intensity remains elevated.
- Believes the effects of AI, macroeconomic conditions and competition continue to play out simultaneously rather than driving a single trend.
- Notes that closure of the Alpha Net acquisition has been delayed after the company had factored a partial-quarter contribution into its guidance.
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