Wipro’s net profit remains flat in Q1 of FY27
Wipro delivered a muted performance for the first quarter of FY27 and the revenue guidance for the second quarter remained disappointing.
IT services company Wipro saw its net profit remaining flat for the first quarter of FY27 while the revenue grew by 10.5%.
The net profit at end of the first quarter stood at Rs 3,352 crore as compared to Rs 3,330 crore in the similar period a year ago. The revenue for the quarter came in at Rs 24,479 crore as compared to Rs 22,135 crore registered a year ago.
Revenue and net profit of Wipro were below market estimates. The market was expecting a net profit of Rs 3,442 crore and revenue of Rs 24,776 crore.
In US dollar terms, Wipro reported a revenue of $2.6 billion for the first quarter of FY27 which was a 1% rise on a year-on-year basis and compared to fourth quarter of FY26, it was a decline of 1.4%.
On the performance of the company, Wipro CEO Srini Pallia said, “Clients are moving beyond technology modernization to AI-enabled operating models that improve quality, resilience, and productivity. Wipro’s consulting-led, AI-powered approach helps clients embed AI at the core of their business, and these engagements reflect both the breadth of our capabilities and the trust clients place in us as a transformation partner.”
Wipro also provided a muted revenue guidance for the second quarter of FY27 as projected the growth to be in the range of negative 1.5% to plus 0.5%.
This was reflected in the total bookings of the company as it was down 2.4% on a quarter-on-quarter (QoQ) basis. Though the large deal bookings grew by 12,9% QoQ to reach $1.6 billion.
The operating profit margins of Wipro came in at 16% for the first quarter which was a dip of 1.2% on a year-on-year basis.
Wipro CFO Aparna Iyer said, "As we navigate an evolving technology landscape, we remain focused on investing in our people and strategic priority areas. While these investments may create some near-term margin volatility, it sets a strong foundation for future growth.”
Wipro also did not see a major revenue uptick in its major markets - North America while Europe saw an increase. Even the business segments did not register any positive growth.
On the headcount front, Wipro added 888 employees taking the total employee strength to 243,044.