Wipro delivered its worst first-quarter performance in three years, with revenue falling 1.4% sequentially to $2.61 billion and net profit declining 4.7% from the preceding quarter to $355 million. According to latest reports, the company's IT services revenue stood at $2.6 billion, down 1.4% sequentially but up 1% year-on-year. In constant currency, revenue declined 1.2% sequentially and increased 0.9% year-on-year. The Bengaluru-based IT services company also declared an interim dividend of ₹2 per share, with the record date set for July 27 and payment on or before August 14, 2026. The company's IT services operating margin fell to 16%, down 130 basis points sequentially and 120 basis points from a year earlier, reflecting the impact of wage hikes and continued investments. Total bookings stood at $3.3 billion, while large deal bookings rose 12.9% sequentially in constant currency to $1.6 billion.
Tech Mahindra reported its strongest performance in three years, with revenue jumping 2.2% sequentially to $154 million and net profit rising 6.7% to $154 million. The company's revenue from operations grew 17.68% to ₹15,712 crore, with sequential profit rising 8.22% and revenue inching up 4.22%. CEO Mohit Joshi expressed optimism about the demand environment, telling reporters that "the demand environment—I feel there has been a degree of volatility, but on the whole, we have a good order book, we have a good set of client relationships. We will deliver growth in what is seasonally a hard quarter for us." The company's profitability jumped 60 basis points sequentially to 14.4%, marking its 11th straight quarter of margin increase, primarily due to bagging deals at higher margins and using automation as part of its deals. Deal wins crossed $1 billion for the quarter, demonstrating strong business momentum.
In an interview to NDTV Profit, Wipro's top management revealed deliberate capacity building strategies despite challenging market conditions. CFO Aparna Iyer explained that the company has consciously reduced utilisation levels year-on-year to free up staff for deals in the pipeline, with utilisation expected to improve through the rest of the financial year as those deals ramp up. She identified utilisation, productivity gains from fixed-price programmes, pyramid optimisation and cost discipline on general and administrative overheads as key margin levers for the year ahead. Chief Human Resources Officer Saurabh Govil confirmed that headcount growth would stay closely tied to demand, which remains subdued, with the company continuing to invest in scarce AI talent. Govil noted that "AI skills are rare, so they are coming at a premium. So all forces are in play. We'll have to invest, grow, and make sure we maintain our margins."
The performance divergence between IT companies was stark, with Wipro's modest performance contrasting sharply with its larger peers. TCS reported June-quarter revenue of $7.6 billion, up 2.7% year-on-year and largely flat sequentially, while HCLTech posted revenue of $3.6 billion, down 0.9% sequentially but up 3% year-on-year. In constant currency, TCS grew 0.4% sequentially and 3.2% year-on-year, while HCLTech declined 0.5% sequentially but grew 2.6% year-on-year. Wipro guided September-quarter IT services revenue in the range of $2.5 billion to $2.6 billion, implying sequential constant currency growth of -1.5% to 0.5%. CEO Srinivas Pallia acknowledged the challenging environment, stating that "while the demand pipeline remains healthy, there is still uncertainty, and that has been factored into our guidance."
The Indian benchmark indices closed Thursday's trading almost flat as positive momentum in IT stocks, airlines, and autos was offset by losses in banking, real estate, and finance services sectors. The Nifty 50 ended 5.75 points or 0.02% lower at 24,072.75, while the BSE Sensex settled virtually flat at 77,186.87, up just 1.44 points. From a sectoral perspective, Nifty Realty, Nifty Bank, and Nifty Financial Services became the heaviest drags on the indices, contrary to their previous support. However, Nifty Chemical and Nifty Consumer Durables outperformed, with Consumer Durables rising 1.5% - providing the only meaningful sectoral upside of the session. With around 40 companies declaring results today, market attention was highly dispersed across individual stocks rather than index-level trends. The performance divergence highlights the varied approaches companies are taking to manage workforce optimization while navigating changing market demands amid the advance of artificial intelligence.
