Did Wipro's Q2 Profit Decline by 2.5%?
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Synopsis
Wipro's latest financial report reveals a decrease in net profit but a year-on-year revenue increase, sparking interest among investors. What does this mean for the company's future? Read on for insights into Wipro's performance and expectations for the next quarter.
Key Takeaways
- Wipro's Q2 FY26 consolidated net profit is Rs 3,246 crore.
- Quarterly profit declined by 2.5% QoQ.
- Year-on-year revenue increased by 1.8%.
- IT services revenue stood at Rs 22,640 crore.
- Operating margin affected by a one-time provision.
Mumbai, Oct 16 (NationPress) The prominent IT firm Wipro has disclosed a 2.5% quarter-on-quarter (QoQ) reduction in its consolidated net profit, amounting to Rs 3,246 crore for the July–September period (Q2) of FY26. This is a decrease from Rs 3,330 crore in the preceding quarter (Q1 FY26).
On a year-on-year (YoY) basis, however, the company's profit experienced a modest increase of 1.2%, compared to Rs 3,209 crore during the same timeframe last fiscal year (Q2 FY25), as indicated in their stock market filing.
The operational revenue for Wipro rose by 1.8% YoY, reaching Rs 22,697 crore, up from Rs 22,302 crore in the corresponding period of the previous fiscal year.
Quarterly revenue showcased a growth of 2.5% from Rs 22,135 crore recorded in the April–June quarter, as per the exchange filing.
Wipro's expenses saw an increase of over 2% YoY, totaling Rs 19,378 crore for the quarter.
The IT services revenue stood at Rs 22,640 crore, indicating a growth of over 2% compared to the previous financial year.
Specifically, the IT segment reported revenue of Rs 22,753 crore, slightly above Rs 22,262 crore from a year prior.
The operating margin for IT services in this quarter was 16.7%, affected by a one-time provision of Rs 116.5 crore due to a customer's bankruptcy.
When adjusted for this provision, the margin was 17.2%, reflecting a 0.1% decline QoQ but a 0.4% improvement YoY.
Looking ahead, Wipro anticipates its IT services revenue to range between $2,591 million and $2,644 million, suggesting a sequential growth guidance of -0.5% to +1.5% in constant currency.
This outlook does not consider any contributions from its recent acquisition of Harman Digital Transformation Solutions.
Wipro's voluntary attrition rate was recorded at 14.9% on a trailing 12-month basis.
The company's operational cash flow for the quarter was Rs 3,390 crore, reflecting a decline of 17.6% QoQ and 20.7% YoY, yet remaining at 103.8% of net income.
Earnings per share for this quarter stood at Rs 3.1, showing a 2.5% drop from the previous quarter and a 1% increase compared to the last fiscal year.
Point of View
I emphasize the importance of analyzing Wipro's quarterly results in the context of broader market trends. While the decline in profit raises concerns, the year-on-year growth in revenue indicates resilience. Stakeholders should stay informed about future forecasts and adjustments.
NationPress
16/10/2025
Frequently Asked Questions
What was Wipro's net profit for Q2 FY26?
Wipro's consolidated net profit for Q2 FY26 was Rs 3,246 crore, reflecting a 2.5% decline from the previous quarter.
How did Wipro's revenue perform in Q2 FY26?
Wipro's revenue from operations increased by 1.8% YoY to Rs 22,697 crore compared to Rs 22,302 crore in the same period last fiscal year.
What is Wipro's projected revenue for the next quarter?
Wipro anticipates its IT services revenue to be between $2,591 million and $2,644 million, indicating a growth forecast of -0.5% to +1.5%.
What is the voluntary attrition rate for Wipro?
Wipro's voluntary attrition rate stands at 14.9% on a trailing 12-month basis.
What was the earnings per share for Wipro in Q2 FY26?
The earnings per share for Wipro in Q2 FY26 was Rs 3.1, reflecting a 2.5% drop from the previous quarter.
