Wipro reported a net profit of ₹3,330 crore in Q1 FY26, marking a 10.9% year-on-year increase from ₹3,003 crore in Q1 FY25.
However, this reflects a 6.7% sequential decline from ₹3,570 crore in Q4 FY25.
Revenue from operations stood at ₹22,135 crore, up 0.8% YoY from ₹21,964 crore, but down 1.6% QoQ from ₹22,504 crore.
In constant currency terms, IT services revenue declined 2.3% YoY and 0.8% QoQ, indicating persistent pressure on discretionary tech spending.
Deal Wins and Bookings
The company secured $2.67 billion in large deal bookings during Q1 FY26, a 131% YoY surge from $1.16 billion in Q1 FY25 and a 49.7% QoQ increase from $1.76 billion in Q4 FY25.
Total deal bookings reached $4.97 billion, up 50.7% YoY and 24.1% QoQ, reflecting strong traction across sectors like retail, healthcare, financial services, and technology.
Wipro AI-Led Transformation
Wipro emphasized its pivot to AI-powered services, with CEO Srini Pallia stating that AI is now central to client strategies.
The company showcased use cases ranging from GenAI-driven supply chain revamps to AI Centers of Excellence for banking clients.
Compared to Q1 FY25, where AI was still emerging in Wipro’s narrative, Q1 FY26 marks a shift toward scaled deployments and production-grade solutions.
Wipro Q1 FY26: Operating Margins and Cash Flow
Operating margins for IT services stood at 17.3%, expanding 80 basis points YoY from 16.5% in Q1 FY25, but contracting 20 basis points QoQ from 17.5% in Q4 FY25.
Operating cash flow conversion remained robust at 123% of net income, up from 104% in Q4 FY25 and 104.4% in Q1 FY25, signaling strong financial discipline despite muted topline growth.
Workforce Metrics
Headcount declined by 114 employees QoQ, settling at 233,232 in Q1 FY26.
Voluntary attrition rose slightly to 15.1%, up from 15% in Q4 FY25, but down from 15.3% in Q1 FY25, indicating stabilization.
Wipro reiterated its plan to hire 10,000–12,000 freshers in FY26, maintaining its campus engagement strategy despite macroeconomic caution.
Shareholder Returns
The board declared an interim dividend of ₹5 per share, adding to over $1.3 billion returned to shareholders over the past six months.
This follows a ₹6 dividend in Q4 FY25 and reflects Wipro’s continued commitment to capital return, even amid revenue headwinds.
Outlook for Wipro Q2 FY26
Wipro guided for flat to slightly negative revenue growth in Q2 FY26, projecting IT services revenue between $2.56 billion and $2.61 billion, translating to (-1%) to 1% QoQ growth in constant currency.
This cautious forecast mirrors the muted sentiment from Q1 FY25 and Q4 FY25, where macro uncertainty and delayed client decision-making weighed on performance.
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