Wipro Q1 FY27 profit drops 4.7% QoQ; Q2 IT revenue outlook flat to negative
Synopsis
Wipro's Q1 FY27 results tell a familiar story for Indian IT: revenue growing on paper, margins shrinking underneath. With Q2 guidance pointing to a possible revenue dip and the stock down over 32 per cent in a year, the company's AI-transformation pitch is carrying the weight of investor expectations — and the numbers have yet to catch up.
Key Takeaways
Wipro reported a 4.7 per cent QoQ decline in consolidated net profit to ₹3,352 crore in Q1 FY27 (April–June 2025) .
Gross revenue rose 1 per cent sequentially and 10.6 per cent YoY to ₹24,480 crore .
IT services operating margin fell to 16 per cent , down 1.3 percentage points sequentially.
Q2 IT services revenue guidance: –1.5 per cent to +0.5 per cent — flat to negative.
Board declared an interim dividend of ₹2 per share ; stock closed at ₹177.80 , up 1.83 per cent on the day.
Wipro shares have lost 32.38 per cent over the past year and 38.49 per cent over five years.
Wipro, one of India's largest IT services companies, reported a 4.7 per cent quarter-on-quarter decline in consolidated net profit to ₹3,352 crore for the first quarter of FY27 (April–June 2025), even as gross revenue edged higher. The results, announced on Thursday, 16 July, were accompanied by a cautious outlook for the next quarter, with the company flagging the possibility of a revenue dip in its core IT services segment.
Key Financial Numbers
Wipro's consolidated profit after tax (PAT) fell 4.7 per cent sequentially to ₹3,352 crore, though it was broadly flat compared to the same period a year ago. Gross revenue rose 1 per cent sequentially and 10.6 per cent year-on-year to ₹24,480 crore, offering a measure of top-line resilience even as bottom-line pressure mounted.
At the operating level, the IT services margin contracted to 16 per cent — down 1.3 percentage points sequentially and 1.2 percentage points year-on-year — signalling that cost pressures are eating into profitability despite revenue growth. Operating cash flow rose 3.6 per cent sequentially to ₹3,290 crore, accounting for 98 per cent of net income, a metric the company highlighted as a sign of cash generation strength.
Q2 Guidance and Attrition
Looking ahead, Wipro projected revenue from its IT services business in a range of a 1.5 per cent decline to 0.5 per cent growth for the second quarter — effectively signalling flat to negative sequential performance. This cautious guidance comes against a backdrop of global macro uncertainty and subdued discretionary technology spending by enterprise clients.
The company's voluntary attrition rate stood at 13.9 per cent on a trailing 12-month basis, a figure that will be watched closely as competition for talent in the IT sector remains elevated.
What the CEO Said
Srini Pallia, Chief Executive Officer and Managing Director of Wipro, struck an optimistic note on the company's strategic direction. 'Clients are moving beyond technology modernisation to AI-enabled operating models that improve quality, resilience, and productivity,' Pallia said. He added that Wipro's 'consulting-led, AI-powered approach helps clients embed AI at the core of their business,' describing client engagements as reflecting 'both the breadth of our capabilities and the trust clients place in us as a transformation partner.'
Dividend and Stock Performance
The board declared an interim dividend of ₹2 per equity share. On the Bombay Stock Exchange (BSE), Wipro shares closed at ₹177.80 on Thursday, up 1.83 per cent on the day — a modest positive reaction to the results. However, the longer-term picture remains challenging: the stock has declined 33.56 per cent over the past six months, 32.38 per cent over the past year, and 38.49 per cent over the last five years.
This comes amid a broader sector-wide slowdown, with Indian IT majors facing headwinds from client budget caution, a stronger rupee, and uncertainty around US economic momentum. Wipro's margin compression and soft Q2 guidance are likely to keep investor sentiment measured in the near term, even as the company bets on AI-led transformation to drive the next growth cycle.
Point of View
But it has not yet translated into the kind of high-margin, large-deal wins that would justify a re-rating. With the stock down over 32 per cent in a year, the market is asking for proof, not positioning.
NationPress
16 Jul 2026
Frequently Asked Questions
What were Wipro's Q1 FY27 earnings results?
Wipro reported a consolidated net profit of ₹3,352 crore in Q1 FY27 (April–June 2025), a decline of 4.7 per cent quarter-on-quarter, though broadly flat year-on-year. Gross revenue rose 1 per cent sequentially and 10.6 per cent year-on-year to ₹24,480 crore.
What is Wipro's revenue guidance for Q2 FY27?
Wipro has guided for IT services revenue in a range of –1.5 per cent to +0.5 per cent for the second quarter of FY27, indicating flat to slightly negative sequential growth. This cautious outlook reflects subdued enterprise technology spending globally.
Why did Wipro's operating margin fall in Q1 FY27?
Wipro's IT services operating margin declined to 16 per cent in Q1 FY27, down 1.3 percentage points sequentially and 1.2 percentage points year-on-year. The contraction points to rising operational costs and pricing pressure even as revenue grew modestly.
What dividend has Wipro declared for Q1 FY27?
Wipro's board declared an interim dividend of ₹2 per equity share for Q1 FY27, announced alongside the quarterly earnings on 16 July.
How has Wipro's stock performed over the past year?
Wipro shares closed at ₹177.80 on 16 July, up 1.83 per cent on the day. However, the stock has declined 32.38 per cent over the past year and 38.49 per cent over five years, reflecting prolonged investor caution around the company's growth trajectory.
