IT services major Wipro announced its first-quarter results for FY2027 (Q1FY27) on Thursday, July 16, with earnings reported after market hours. According to an exchange filing, the company's board meeting was held on July 15-16, 2026, to consider and approve the condensed audited standalone and consolidated financial results for the quarter ended June 30, 2026. Along with its Q1 results, Wipro's board declared an interim dividend of ₹2 per equity share for shareholders. The company will also review the condensed audited consolidated financial results under IFRS for the same quarter. July 27 has been fixed as the record date, and the payment will be made on or before August 14. As per The Financial Express, Wipro shares are in focus after the company reported its first-quarter earnings for the current financial year, with the stock showing not much change in the company's ADR, which closed up 0.54%. Wipro shares closed at ₹177.74 on the NSE, gaining around 1.7% in the preceding session, as reported by CNBC TV18. However, Wipro shares slipped 1.24% to ₹175.60 following the earnings announcement, reflecting investor concerns about the quarterly performance.
According to latest results, Wipro reported a consolidated net profit of ₹3,356.3 crore for Q1 FY27, representing a 4.69% decline from ₹3,521.6 crore posted in the March quarter, but showing 0.59% year-on-year growth. The company's gross revenue increased 10.58% year-on-year to ₹24,478.6 crore, compared to ₹22,134.60 crore in Q1 FY26, and was up 1% quarter-on-quarter. In dollar terms, revenue stood at $2,585.9 million, up 1% QoQ and 10.9% YoY. Total income rose 9.7% to ₹25,457.6 crore. Profit before tax (PBT) stood at ₹4,334.5 crore, down 7.13% sequentially but up 1.78% from the corresponding quarter last year. Revenue from operations rose 1% from ₹24,236.3 crore, while sequentially, net profit declined 4.69% from ₹3,521.6 crore in the March quarter. Wipro's revenue in constant currency terms rose 0.9% YoY, with the company's market capitalization standing at ₹2.69 lakh crore and a P/E ratio of 15.08.
The company faced significant margin pressure during the quarter, with IT services operating margin falling to 16.0%, down 1.3 percentage points sequentially and 1.2 percentage points year-on-year, marking a 15-quarter low and below Street expectations of 16.9%. According to CNBC TV18, IT services EBIT margin at 16%, down 1.3 percentage points sequentially and 1.2 percentage points year-on-year. IT services EBIT declined 8.4% to ₹3,829 crore from ₹4,181 crore in the previous quarter, with margin narrowing 160 basis points to 15.6% from 17.2%. Total expenses increased 11.5% year-on-year to ₹21,122.6 crore from ₹18,947.8 crore, with employee-benefit expenses, Wipro's largest cost component, rising 9.9% to ₹14,753.1 crore. Subcontracting and technical fees increased 12.5% to ₹2,878.7 crore, while finance costs climbed 31% to ₹472.8 crore and depreciation, amortisation and impairment expenses rose 17.3% to ₹804.4 crore. Operating cash flow increased 3.6% QoQ to ₹3,290 crore and amounted to 98% of the company's net income for the quarter. Attrition is estimated at 14.86%, while the company's total headcount is projected to stand at 2,49,422 employees, with net additions of around 18,000 during the quarter.
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%. According to The Financial Express, Wipro's Q2 guidance falls short of estimates, adding to investor concerns about the company's near-term prospects. 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. 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, indicating continued talent retention challenges. CEO Srini Pallia revealed during the post-results conference call that part of the margin impact was due to investments in artificial intelligence, with the company aiming to go back to the narrow 17% to 17.5% EBITDA margin band. For the quarter ending 30 September 2026 (Q2 FY27), Wipro expects revenue from its IT services business to be in the range of $2,574 million to $2,627 million, with sequential growth guidance of (-)1.5% to (+)0.5% in constant currency terms.
The market responded negatively to Wipro's Q1 results, with Wipro ADRs trading 0.28% lower at $1.83 as of 9:55 a.m. EST following the earnings announcement. According to CNBC TV18, the profit decline was slightly higher than street expectations, with analysts on Bloomberg expecting Wipro's profit to come in at ₹3,466 crore, 1% lower than the previous quarter. The cautious outlook for Q2 FY27 has added to investor concerns about the company's near-term prospects. Management isn't ready to commit to a timeline, with CFO Aparna Iyer stating that recovery will take "a few quarters" as the company absorbs the impact of wage hikes and growth investments. Iyer said the decline was largely driven by the impact of wage hikes and Wipro's decision to invest ahead of expected growth, noting that "We have improved our profitability quite a bit. It will take a few quarters for us to recoup the impact from wage hikes on margins." The company's share price has risen 1% in the last five trading sessions but 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, reflecting sustained investor concerns about the challenging operating environment.
