Wipro is expected to report muted sequential performance for the March quarter, with analysts pegging constant currency revenue growth in a range of a 1.5% decline to marginal growth of 0.9%, reflecting delays in ramp-up of large deals and pricing pressure linked to AI-led deflation.
The company is scheduled to announce its fourth-quarter and full-year results on April 16, with investor attention also on a potential share buyback to be considered at its board meeting the same day.
Compared with peers, analysts expect Wipro to lag Tata Consultancy Services but perform relatively better than Infosys and HCL Technologies on a sequential basis, supported by the acquisition of Harman’s digital transformation solutions (DTS) business unit.
What do estimates by Kotak suggest?
Kotak Institutional Equities has estimated a 0.9% quarter-on-quarter revenue increase, including a 160 basis point contribution from the DTS acquisition. On an organic basis, however, revenue is expected to decline 0.7%, underlining continued weakness in core operations.
Margins are likely to remain under pressure despite stable spending trends in the technology, communication and consumer verticals and steady demand from the BFSI segment. Analysts expect the healthcare vertical to see a decline due to lower US federal spending on Medicaid and Medicare programmes, while growth in the energy and resources segment has lagged amid the absence of large deal wins over the past year.
“We expect a 40 basis points margin decline on a consolidated basis in Q4FY26, due to headwinds from one-month impact from wage hike starting from March 1, 2026, and a higher D&A charge due to the consolidation of Harman acquisition could be partially offset by rupee depreciation,” analysts at ICICI Securities said.
Kotak, however, expects Ebit margins to remain broadly stable.
Steady deal momentum
Deal momentum is seen steady, with total contract value estimated at around $3.5 billion for the quarter, including $1 billion in large deals, compared with $3.34 billion in the preceding quarter.
During the quarter (in March), Wipro lost business worth up to $100 million after Estée Lauder shifted a significant portion of its IT operations to Accenture. This was partly offset by a $1 billion, eight-year strategic deal with Olam Group. As part of that engagement, Wipro will also acquire a 100% stake in Olam’s GCC arm, Mindsprint, for $375 million in cash.
Guidance across IT services companies remains constrained by global uncertainties, including geopolitical tensions linked to the Iran conflict and their potential impact on client spending visibility. In addition, GenAI-led delivery models are exerting structural pricing pressure.
“Our base-case expectations assume some deescalation in geopolitical conditions; a prolonged or intensifying conflict would pose downside risks to both demand assumptions,” Kotak said, projecting June quarter revenue growth in the range of a 2% decline to flat, citing share losses, slower large deal conversions and pricing pressure.
While the West Asia conflict has not yet materially affected decision-making for Wipro, analysts expect a drag on demand if tensions persist.
JM Financial said Wipro remains among the least preferred IT stocks, despite expectations of a potential buyback, due to the likelihood of weak near-term performance.