Wipro Ltd. has $4.6 billion, or Rs 43,580 crore, in gross cash and is looking to expand its capabilities across AI, consulting and industry-specific services. But the IT services company's next acquisition may be determined less by the size of the target than by what it can add to Wipro's existing business. During the IT major's Q2FY27 post-earnings analyst call on Oct 15, the board was asked whether Wipro could use its cash-rich balance sheet to make large acquisitions as artificial intelligence investments spread across the technology ecosystem, and CEO and Managing Director Srini Pallia reiterated that the company would continue to pursue acquisitions that strengthen its strategic priorities.
"As far as inorganic play is concerned, we look for opportunities which can enhance our strategy, which is consulting-led and AI-powered within the sectors priority sectors and the markets that we go after," Pallia said.
Buying Capabilities
Pallia also cited two acquisition examples to explain that approach. The acquisition of Harman DTS added capabilities in design-to-manufacturing and connected services, while Mindsprint brought expertise in food and agriculture, supply chains and farm-to-fork processes. Mindsprint was acquired in connection with Wipro's large deal with Olam, a food and agri-business group. CFO Aparna Iyer said the business was acquired in the context of that contract because its capabilities could also create value beyond the immediate engagement.
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Pallia said the company would continue looking for opportunities that strengthen its position in priority sectors and markets. "We will look at opportunities that can enhance our value," he said.
Wipro's AI Strategy
Wipro is also investing in capabilities internally, and its AI-native unit has more than 2,000 engineers, including forward-deployed engineers, while the company is expanding its AI services and solutions across five areas: AI data centres, AI foundry services, physical AI, AI devices and design-to-manufacturing.
The parallel investments raise an important question for Wipro's acquisition strategy: which capabilities can be developed internally, and which would be better added through acquisitions?
The company has not disclosed a specific acquisition budget, target size or timeline for a major deal. Pallia reaffirmed that its growth strategy would remain both organic and inorganic.
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