Wipro Q2 FY27 net profit falls 4.6% to ₹3,200 crore; revenue up 9%
Synopsis
Wipro's Q2 FY27 numbers tell a split story: rupee revenue grew 9 per cent year-on-year, yet dollar-terms IT services revenue was barely flat, and net profit slipped both sequentially and annually. The margin uptick to 16.5 per cent and a cash conversion of 166 per cent of net income are the standout positives — but sustained demand recovery, not margin management, is what the street will be watching.
Key Takeaways
Wipro reported a 4.6 per cent sequential and 1.9 per cent year-on-year decline in net profit to ₹3,200 crore in Q2 FY27 .
Revenue from operations rose 9 per cent year-on-year to ₹24,752.7 crore .
IT services dollar revenue was $2.61 billion , nearly flat with a 0.1 per cent sequential decline.
IT services operating margin expanded 0.5 percentage points sequentially to 16.5 per cent .
Operating cash flow stood at 166 per cent of net income , according to CFO Aparna Iyer .
Europe , contributing over one-fourth of revenue, grew 5.1 per cent year-on-year in constant currency.
Wipro, one of India's largest IT services companies, reported a 4.6 per cent year-on-year decline in consolidated net profit to ₹3,200 crore for the July–September quarter (Q2 FY27), even as revenue posted healthy growth. The results, filed with stock exchanges on 15 October 2026, reflect the continued pressure on IT sector margins amid a cautious global spending environment.
Profit and Revenue Performance
Net profit attributable to equity holders came in at ₹3,200 crore in Q2 FY27, down from ₹3,262.4 crore in the same quarter a year earlier — a decline of 1.9 per cent year-on-year. On a sequential basis, the figure fell from ₹3,356.3 crore recorded in Q1 FY27, a drop of 4.6 per cent.
Revenue from operations, however, grew 9 per cent year-on-year to ₹24,752.7 crore, up from ₹24,478.6 crore in the preceding June quarter — a sequential uptick of 1.1 per cent.
IT Services Segment: Stable but Subdued in Dollar Terms
Revenue from Wipro's core IT services segment stood at ₹24,667 crore. In dollar terms, IT services revenue was $2.61 billion — essentially flat, with a marginal 0.1 per cent sequential decline and a modest 0.3 per cent rise over the year-ago period. In constant currency terms, IT services revenue was flat quarter-on-quarter and up 0.6 per cent year-on-year, signalling currency tailwinds were limited.
Notably, Wipro's Europe business — which contributes more than one-fourth of total revenue — posted a 5.1 per cent year-on-year growth in constant currency terms, emerging as a relative bright spot amid sluggish demand elsewhere.
Margin Expansion Despite Investments
The company's IT services operating margin improved by 0.5 percentage points sequentially to reach 16.5 per cent, though it remained 0.2 percentage points below the year-ago level. Chief Financial Officer Aparna Iyer highlighted the feat of expanding margins while continuing to invest in people and business growth.
'Our operating margin for the quarter was 16.5 per cent, an expansion of 0.5 per cent sequentially. We have delivered this improvement even while continuing to invest in our business and people,' Iyer said.
On cash flows, Iyer added: 'We remain relentless in driving cash flow conversion. Q2 is yet another quarter where our operating cash flow has been robust and stood at 166 per cent of net income.'
AI Partnerships Driving Operational Gains
Wipro highlighted strategic partnerships with Anthropic and Google as key enablers of AI-led client engagements during the quarter. According to the company, these collaborations helped accelerate delivery and generate operational savings, reinforcing its positioning in an increasingly AI-driven IT services market. This comes amid broader industry efforts by Indian IT majors to pivot towards generative AI offerings to sustain deal momentum.
What to Watch Next
With IT services revenue in dollar terms barely budging despite rupee-based growth, investor focus will remain on demand recovery signals from the US and Europe — Wipro's two largest markets. The company's ability to convert AI partnerships into recurring, large-deal revenue will be closely tracked in the quarters ahead.
Point of View
While dollar revenue stagnates — a distinction that matters far more to institutional investors. The margin expansion to 16.5 per cent is commendable given ongoing talent investments, but at 0.2 percentage points below the year-ago level, it signals that structural margin recovery remains incomplete. The AI partnerships with Anthropic and Google are strategically sound, but industry observers will note that most Indian IT majors are making similar bets; differentiation will depend on execution speed and deal sizes, neither of which is visible yet in the numbers. With Europe as the lone growth engine and US demand still subdued, Wipro's next quarter will test whether this stability is a floor or a ceiling.
NationPress
15 Oct 2026
Frequently Asked Questions
What was Wipro's net profit in Q2 FY27?
Wipro reported a consolidated net profit of ₹3,200 crore in Q2 FY27 (July–September 2026), a decline of 1.9 per cent year-on-year and 4.6 per cent sequentially from ₹3,356.3 crore in Q1 FY27.
How did Wipro's revenue perform in Q2 FY27?
Revenue from operations grew 9 per cent year-on-year to ₹24,752.7 crore, with a 1.1 per cent sequential increase. However, IT services revenue in dollar terms was nearly flat at $2.61 billion, declining 0.1 per cent quarter-on-quarter.
What was Wipro's operating margin in Q2 FY27?
Wipro's IT services operating margin improved 0.5 percentage points sequentially to 16.5 per cent in Q2 FY27. It was, however, 0.2 percentage points lower than the same quarter a year earlier.
Which geography performed best for Wipro in Q2 FY27?
Wipro's Europe business was the standout performer, recording 5.1 per cent year-on-year growth in constant currency terms. Europe contributes more than one-fourth of the company's overall revenue.
What role did AI play in Wipro's Q2 FY27 performance?
Wipro credited partnerships with Anthropic and Google for accelerating AI-led client engagements and generating operational savings during the quarter. These alliances are part of the company's broader push to position itself as an AI-first IT services provider.
