Wipro shares down nearly 2% after Q1 margins, revenue dip; Q2 guidance falls short of estimates

Wipro Q1 highlights

The company reported a consolidated net profit of Rs 3,352 crore for Q1FY27, which was almost flat compared to Rs 3,330 crore posted in the same quarter a year back, up 0.6% year-over-year. Its consolidated revenue surged 10.6% YoY to Rs 24,479 crore. 

On the operating front, the company faced a big setback. Its IT services operating margin stood at 16%, falling 130 basis points sequentially and 120 basis points YoY.

However, it is to be noted that there’s not much change in the company’s ADR, which closed up 0.54%.

The company’s operating margin fell to a 15-quarter low, implying the impact of higher employee costs, lower utilisation levels, and continued investments for future growth.

Wipro’s EBIT declined 8.4% to Rs 3,829 crore, while EBIT margin contracted to 15.6% from 17.2%.

The company’s IT services revenue stood at $2.61 billion, a fall of 1.4% sequentially but up 1% year-on-year. In constant currency terms, Wipro’s IT services revenue slipped 1.2% sequentially and rose 0.9% from a year ago.

Wipro: Q1 deal bookings take a hit

Total bookings for the quarter came in at $3.37 billion, a decrease of 2.4% QoQ in constant currency, while large deal bookings increased 13% sequentially to $1.63 billion. 

Wipro’s voluntary attrition stood at 14% on a trailing 12-month basis.

Wipro Q2 guidance

For Q2 FY27, Wipro’s IT services revenue outlook stood in the range of $2.57-2.63 billion, implying sequential constant currency growth of between a fall of 1.5% and a growth of 0.5%.

Also, the company’s board declared an interim dividend of Rs 2 per equity share.

Wipro share price performance

The share price of Wipro has risen 1% in the last five trading sessions. The stock has fallen 3.7% in the last one month and 28% in the past six months. Wipro’s share price has slipped 32% in the previous 12 months.