Wipro shares in focus after Q1 profit rises 11% YoY to Rs 3,330 crore
ADVERTISEMENT The profit attributable to equity holders slightly exceeded Street estimates of Rs 3,233 crore.
Wipro also declared an interim dividend of Rs 5 per share for FY26. The record date is July 28, and the dividend will be paid on or before August 15, 2025.
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The IT services company's revenue from operations rose marginally by 0.7% to Rs 22,134 crore, compared to Rs 21,963 crore in the year-ago period.However, profit after tax (PAT) declined nearly 7% sequentially from Rs 3,570 crore reported in Q4FY25.
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Wipro expects revenue from its IT services segment to be in the range of $2,560 million to $2,612 million in Q2FY26, implying sequential growth of -1.0% to 1.0% in constant currency terms.
ADVERTISEMENT - Gross revenue was reported at Rs 22,130 crore ($2,581.6 million), marking a 1.6% QoQ decline and a 0.8% YoY increase.- IT services segment revenue stood at $2,587.4 million, down 0.3% QoQ and 1.5% YoY.
ADVERTISEMENT - Non-GAAP constant currency IT services segment revenue declined 2.0% QoQ and 2.3% YoY.- Total bookings came in at $4,971 million, up 24.1% QoQ and 50.7% YoY in constant currency.
ADVERTISEMENT Large deal bookings were reported at $2,666 million, a sharp rise of 49.7% QoQ and 130.8% YoY in constant currency.- The IT services operating margin for Q1FY26 stood at 17.3%, a 0.2% contraction QoQ, but a 0.8% expansion YoY.- Net income declined 6.7% sequentially.- Operating cash flows stood at Rs 4,110 crore ($479.6 million), up 9.8% QoQ and 2.9% YoY, and at 123.2% of net income for the quarter.- Voluntary attrition was at 15.1% on a trailing 12-month basis.Commenting on the earnings, Srini Pallia, CEO and Managing Director, said the quarter was shaped by macroeconomic uncertainty, with clients prioritising efficiency and cost optimisation.'We partnered closely with them to address these needs, resulting in 16 large deals, including two mega deals. Building on the momentum from last quarter and supported by a strong pipeline, we are well-positioned for the second half. AI is no longer experimental — it's central to our clients' strategies, and we are delivering real impact at scale,' he added.According to Trendlyne, the average target price for Wipro is Rs 256, implying a potential downside of nearly 2% from current levels.Among the 43 analysts tracking the stock, the consensus rating is 'Hold'.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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