IT major Wipro is set to release its Q3 FY26 report card today. As the company posted muted growth in the last quarter, investors would pay close attention to whether the company improve topline and regains margin growth this quarter.
A Kotak Institutional Securities report estimates that while Wipro’s revenue in the quarter is likely to bounce back, its profit margins will remain under pressure. At the same time, investors would look at the company’s performance vis-à-vis its peers and Gen AI growth strategy.
Here is a closer look at key investor focus areas in today’s Wipro Q3 report card-
Revenue growth
Kotal Institutional Securities estimates Wipro’s Q3 FY26 revenue to increase by 6% year-on-year and 4.2% quarter-on-quarter, totalling Rs 2,3701 crore. The brokerage firm expects Wipro’s organic revenue growth above the mid-point of guidance at 0.9% c/c QoQ, primarily aided by the ramp-up of the Phoenix deal, as the DTS acquisition was consolidated for 1 month during the quarter.
Axis Securities estimates a much lower 3.7% YoY and 2% QoQ revenue growth for Wipro in Q3 FY26. The firm adds that Wipro’s revenue in the quarter was aided by stability in the European business and partial contribution from the Harman acquisition.
Margin under pressure
Wipro’s EBIT margins are estimated to be under pressure in the quarter by the majority of the brokerage firms. Kotak estimates Wipro’s Q3 FY26 EBIT margin to come down to 16.7%. While on a sequential basis Kotak estimates a 4 basis points growth, on a yearly basis, the company’s EBIT margins are estimated to decline by 76 basis points.
“Note that one-off related to client bankruptcy impacted margin in 2QFY26 by 50 bps. On adjusted basis, we expect 50 bps EBIT margin decline primarily due to dilution from the DTS acquisition” Kotak Securities said in a report.
Axis Securities estimates Wipro’s EBIT margin to decrease by 81 basis points YoY in the quarter and a 28 bps QoQ improvement.
Revenue guidance
Kotak expects Wipro’s revenue growth guidance of 1.5% to 3.5%, with 2% inorganic contribution. The brokerage firm said that the residual ramp-up of the Phoenix mega deal and the recent deal wins would aid growth.
Kotak expects Wipro to post organic revenue growth guidance of -0.5% to +1.5%.
Deal pipeline
Wipro’s deals pipeline in the quarter will be among the key focus of the investors. Kotak Institutional anticipates a healthy large deal in the pipeline of estimated Total Contract Value in a range of $2 billion.
The firm said that while Wipro’s aggressive large deal pursuit has aided the growth the translation of TCV into revenue would be a key focus area for the investors.
Other key investor focus areas
In the Wipro’s Q3 report card, in additional to the mentioned points, the investors would likely pay close attention to the state of demand in the impacted sectors of retail, energy and manufacturing, pricing pressure in large deals and profitability impacts, the pace of Gen AI adoption and its deflationary impact on services spends, GCC growth strategy and catch-up timeframe on growth with peers.