Wipro Q2 Results: Profit Falls 3% But Deal Wins Jump
Wipro logged a revenue of Rs 22,697 crore in the September quarter, up 2.5% sequentially.
Wipro Ltd. logged a decline in its net profit during the quarter ended September, even as it posted a jump in new deal wins in the same period.
The IT major logged a logged a consolidated net profit of Rs 3,246.2 crore, as against Rs 3,330.4 crore in the preceding quarter, according to an exchange filing on Thursday. This was in line with the estimate of Rs 3,279 crore, as projected by the analysts tracked by Bloomberg.
Revenue of the largest IT services firm rose 2.5% over previous quarter to Rs 22,697.30 crore. That compares with the Rs 22,680-crore consensus estimate of analysts tracked by Bloomberg.
The company expects revenue from its IT services business to be in the range of $2,591 million to $2,644 million for the third quarter of FY26, reflecting a sequential growth guidance of -0.5% to +1.5% in constant-currency terms.
This comes after a sequential uptick of 0.3% in constant-currency revenue during the second quarter.
Wipro Q2 Results: Key Highlights (Consolidated, QoQ)
Revenue up 2.5% to Rs 22,697.3 crore versus Rs 22,134.6 crore (Estimate: Rs 22,680 crore).
Profit falls 3% to Rs 3,246.2 crore versus Rs 3,330.4 crore (Estimate: Rs 3,279 crore).
EBIT up 4% at Rs 3,680.7 crore versus Rs 3,547.6 crore (Estimates: Rs 4,457 crore).
EBIT margin expands to 16.2% versus 16% (Estimate: 19.65%).
Q2 Deal Wins
Despite the subdued top-line outlook, Wipro reported robust growth in deal wins, offering some comfort to investors. Total booking stood at $4,688 million, up 6.1% from the previous quarter and up 30.9% year-on-year in constant currency.
Notably, large deal wins surged 6.7%, reaching $2,853 million in comparison to the last quarter, and it was up 90.5% in year-on-year.
Wipro Attrition
On the operational front, net utilisation stood at 86.4%, up 140 basis points from the previous quarter. Attrition fell to 14.9% in the quarter ended September.
The attrition rate measures the rate at which employees leave a company over a period of time. A lower rate is generally considered healthy for a company.
The company's vertical performance was mixed. The banking, financial services and insurance segment saw a growth of 2.6%, while the consumer sector saw a decline of 1.1%.
The energy and healthcare sectors saw some decline, while technology and communications rose 1%.
Wipro Share Price Today
The quarterly earnings were declared after the market hours. The stock settled 1.44% higher at Rs 253.81 apiece on the NSE, compared to a 1.03% advance in the benchmark Nifty 50.
Wipro shares have fallen 4.61% in the last 12 months and 15.92% year-to-date.
Out of 47 analysts tracking the company, 11 maintain a 'buy' rating, 19 recommend a 'hold' and 17 suggest 'sell', according to Bloomberg data. The average 12-month consensus price target of Rs 254.02 implies a potential upside of 0.1%.
