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View Promises →Wipro Limited — Q1 FY26
Wipro's Q1 FY26 IT services revenue declined 2.3% YoY in constant currency to $2.59B, within guidance.
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Wipro's Q1 FY26 IT services revenue declined 2.3% YoY in constant currency to $2.59B, within guidance. EBITDA margin expanded 80bps YoY to 17.3% driven by operational excellence. Net income grew 10.9% YoY despite a INR 247cr restructuring charge. Total bookings surged 51% YoY to $5B, with large deal bookings up 131% YoY to $2.7B, including two mega deals in BFSI. Management cited persistent macro uncertainty, especially in Europe and consumer sectors, but sees H2 improvement driven by strong order book and AI-led deal pipeline. Key risks include delayed revenue conversion from large deals and margin pressure from upfront investments. Guidance for Q2 is -1% to +1% sequential CC.
विप्रो की पहली तिमाही (अप्रैल-जून 2026) में आईटी सेवाओं से कमाई पिछले साल की तुलना में 2.3% घटकर 2.59 अरब डॉलर रही, जो कंपनी के अनुमान के अनुसार है। कंपनी ने बेहतर संचालन से मुनाफा बढ़ाया - EBITDA मार्जिन 0.8% बढ़कर 17.3% हो गया। 247 करोड़ रुपये के पुनर्गठन खर्च के बावजूद शुद्ध मुनाफा 10.9% बढ़ा। नए ऑर्डरों में जबरदस्त उछाल आया - कुल बुकिंग 51% बढ़कर 5 अरब डॉलर हुई, जिसमें बड़े ऑर्डर 131% बढ़कर 2.7 अरब डॉलर रहे। बैंकिंग और वित्त क्षेत्र में दो बड़े सौदे हुए। प्रबंधन का कहना है कि यूरोप और उपभोक्ता क्षेत्र में अनिश्चितता है, लेकिन मजबूत ऑर्डर बुक और AI से जुड़े सौदों से दूसरी छमाही में सुधार होगा। जोखिमों में बड़े ऑर्डरों से कमाई में देरी और शुरुआती निवेश से मार्जिन पर दबाव शामिल है। अगली तिमाही में कमाई में 1% घटने से 1% बढ़ने का अनुमान है।
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Delayed revenue conversion from large deals
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Read Transcript →Quarter Snapshot
Total Bookings (TCV)
$5.0B
+51% YoY
Total contract value of deals won in Q1, driven by vendor consolidation and AI-led transformations.
Large Deal Bookings
$2.7B
+131% YoY
Includes 16 large deals, two of which are mega deals in BFSI and semiconductor sectors.
IT Services Margin
17.3%
+80bps YoY
Margin expanded despite revenue decline, aided by productivity improvements and cost controls.
Free Cash Flow / Net Income
115%
N/A
Strong cash conversion, reflecting disciplined working capital management.
What Changed vs Last Quarter
NEW
H2 FY26 performance expected to be better
Management expects stronger revenue growth in second half due to large deal ramp-ups and strong pipeline.
NEW
Capital allocation: minimum 70% net income payout over 3 years
Interim dividend of INR 5/share declared; endeavor to pay dividends twice a year (June and Q3 results).
UPDATED
Q2 FY26 revenue guidance: -1% to +1% sequential CC
IT services revenue expected between $2.56B and $2.612B, reflecting cautious near-term outlook.
DROPPED
Margins to be maintained in a narrow band
CFO stated endeavor to maintain operating margins in a narrow band in coming quarters, despite revenue headwinds.
DROPPED
Fresher hiring to continue but cautiously
CHRO indicated plans to continue campus hiring but will monitor environment to avoid over-hiring, as seen in past.
NEW RISK
Persistent macro uncertainty in Europe and consumer sectors
Europe revenue declined 11.6% YoY; consumer sector declined 5% YoY due to tariff impacts and cautious spending.
NEW RISK
Attrition creeping up in niche AI skills
Attrition has been in a narrow band but pockets of higher attrition for AI talent; premium salaries may impact costs.
RISK GONE
Macroeconomic uncertainty from tariffs
Management cited tariff-related uncertainty as a key factor driving client caution, leading to pauses in large transformation programs and delayed decisions on discretionary spend.
RISK GONE
Decline in client count in lower revenue buckets
Number of clients in $1M-$100M buckets declined sequentially, attributed to weaker discretionary spend, which could signal reduced engagement breadth.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25, Q4 FY25
CFO stated endeavor to maintain operating margins in a narrow band in coming quarters, despite revenue headwinds.
Mentioned in Q1 FY25, Q2 FY25, Q3 FY25
Management expects IT services revenue to be between $2.602B and $2.655B in constant currency terms for Q4.
Mentioned in Q2 FY25, Q3 FY25
Energy, manufacturing, and resources declined 8.7% YoY; consumer grew only 0.4% YoY. These segments represent ~36-38% of revenue and may hinder consistent growth.
Mentioned in Q1 FY25, Q3 FY25
Europe degrew 4.6% YoY and APMEA degrew 8% YoY. Management acknowledged challenges in these regions despite pipeline rebuilding.
Mentioned in Q2 FY25, Q3 FY25
CFO stated confidence in sustaining margins in a narrow band around the current level for Q4.
Fast read
Guidance and risk preview
IT services revenue expected between $2.56B and $2.612B, reflecting cautious near-term outlook.
Large deals take 6-8 quarters to fully ramp; Q1 revenue growth was at an 8-quarter low despite record bookings.
View Risks →