Indian IT heavyweight Wipro Limited delivered a mixed set of financial results for the first quarter of the fiscal year, as a robust pipeline of large-deal wins was overshadowed by muted revenue growth and a notable contraction in operating margins. The Bengaluru-based software exporter reported a consolidated net profit of ₹3,352 crore, marking a modest 0.6% increase year-on-year but reflecting a sequential decline of approximately 4.3%. While Wipro secured healthy total bookings of $3.37 billion—including thirteen large deals worth $1.63 billion—sluggish execution and delayed contract ramp-ups continue to hold back rapid revenue conversion. Consequently, IT services revenue slipped 1.2% sequentially in constant currency terms to $2.61 billion, matching market expectations but highlighting persistent softness in discretionary technology spending across North American financial and manufacturing sectors. The most prominent pressure point appeared in the company’s profitability, with its consolidated EBIT margin contracting by 130 basis points to 16%, reaching a multi-quarter low. Wipro’s management attributed this margin erosion to wage hikes, deal transition costs, and front-loaded investments in artificial intelligence capabilities, noting that recovering historical margin bands will take several quarters to fully realize. Looking ahead, Wipro maintained a highly cautious near-term outlook, guiding its next-quarter revenue growth between -1.5% and +0.5% in constant currency. While its non-capex, partnership-heavy AI strategy and consistent shareholder payouts provide some cushion to valuation metrics, investors remain watchful, keeping the stock range-bound as the company navigates slow project rollouts and ongoing corporate restructuring.
Wipro’s Q1 Earnings Face Margin Squeeze and Revenue Sluggishness Despite Robust $3.4 Billion Order Book
