Wipro Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Wipro Ltd filed with BSE on 17 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Wipro reported Q1 FY27 IT services revenue of $2.61 billion, up 0.9% year-on-year in constant currency but down 1.2% sequentially, with IT services margin at 16%, down 1.2% year-on-year. Management attributed the margin decline to salary increases, ramp-up of large deals, and AI investments, partially offset by rupee depreciation. For Q2 FY27, the company guided to sequential revenue growth of -1.5% to +0.5% in constant currency terms.
Numbers mentioned
IT services revenue: $2.61 billion (Q1 FY27)
p. 3
“Our IT services revenue for quarter one was $2.61 billion, up 0.9% year-on-year and down 1.2% sequentially.”
Srini Pallia, page 3 of the filed PDF · View the filing
IT services margin: 16% (Q1 FY27)
p. 4
“Our IT services margin was 16%, a 1.2% decline year-on-year.”
Srini Pallia, page 4 of the filed PDF · View the filing
Order booking: $3.4 billion (Q1 FY27)
p. 4
“During the quarter, order booking totaled $3.4 billion and large deal bookings totaled $1.6 billion.”
Srini Pallia, page 4 of the filed PDF · View the filing
Net income: INR33.6 billion (Q1 FY27)
p. 6
“Net income for the quarter was INR33.6 billion.”
Aparna Iyer, page 6 of the filed PDF · View the filing
EPS: INR3.2 (Q1 FY27)
p. 6
“Our EPS for the quarter was INR3.2, both grew 0.6% year-on-year.”
Aparna Iyer, page 6 of the filed PDF · View the filing
Operating cash flows as % of net income: 98% (Q1 FY27)
p. 6
“Our operating cash flows stood at 98% of net income for quarter 1.”
Aparna Iyer, page 6 of the filed PDF · View the filing
Gross cash including investments: $4.3 billion (Q1 FY27)
p. 6
“Our gross cash including investments was at $4.3 billion.”
Aparna Iyer, page 6 of the filed PDF · View the filing
Effective tax rate: 22.6% (Q1 FY27)
p. 6
“Our ETR was at 22.6% for quarter 1 versus 21.6% in the same time last year.”
Aparna Iyer, page 6 of the filed PDF · View the filing
Healthcare sector growth: -2.6% sequentially, -3.0% year-on-year (Q1 FY27)
p. 6
“Health declined 2.6% sequentially and 3.0% year-on-year.”
Aparna Iyer, page 6 of the filed PDF · View the filing
BFSI sector growth: 2.6% year-on-year, -1.2% sequentially (Q1 FY27)
p. 6
“BFSI grew 2.6% on a year-on-year basis while declining 1.2% sequentially.”
Aparna Iyer, page 6 of the filed PDF · View the filing
Interim dividend: INR2 (FY27)
p. 6
“in the recently concluded Board meeting, our Board of Directors have declared an interim dividend of INR2.”
Aparna Iyer, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
IT services revenue — $2.574 billion to $2.627 billion · Q2 FY27
stated firmly by Aparna Iyer
p. 6
“our IT services business segment is expected to be in the range of $2.574 billion to $2.627 billion.”
Aparna Iyer, page 6 of the filed PDF · View the filing
Sequential revenue growth — -1.5% to +0.5% · Q2 FY27
stated firmly by Srini Pallia
p. 5
“In quarter 2, we are guiding for a sequential growth of -1.5% to +0.5% in constant currency terms.”
Srini Pallia, page 5 of the filed PDF · View the filing
IT services margin — 17% to 17.5%
stated as an aspiration by Srini Pallia
p. 10
“our mission is clearly to go back to the narrow band that we've been talking about, 17% to 17.5%.”
Srini Pallia, page 10 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said headcount growth was driven by Mindsprint hires, and excluding that, headcount actually fell.
Answered by Aparna Iyer
Asked by Ravi Menon: Why is headcount rising when the guidance implies a revenue decline?
p. 6
“Our head count also includes the people who joined us from the Mindsprint team, Ravi. If you exclude that, our head count has actually gone down quarter-on-quarter.”
Aparna Iyer, page 6 of the filed PDF · View the filing
Management attributed it to slower ramp-up of large deals and slower discretionary spend, but expects a recovery.
Answered by Srini Pallia
Asked by Ravi Menon: Why did BFSI decline sequentially despite peers doing well?
p. 7
“Discretionary spend has been slower and some of the decision making has been slower, but we think it will come back.”
Srini Pallia, page 7 of the filed PDF · View the filing
Management said it could not predict the exact timeframe but remained committed to reaching the target band while continuing to invest in AI.
Answered by Srini Pallia
Asked by Nitin Padmanabhan: Will margin recovery to the target band be gradual or faster?
p. 10
“Right now, in the context of the volatility that we see, in the context of the revenue situation that we see, right, I do not want to predict exactly where, you know, when we will get there.”
Srini Pallia, page 10 of the filed PDF · View the filing
Management explained the decline stemmed from pressures in the US Healthcare ecosystem including payers and providers, but sees future opportunity from AI and compliance-driven spend.
Answered by Srini Pallia
Asked by Vibhor Singhal: What is the outlook for the Healthcare vertical given the sector decline?
p. 12
“the Healthcare sector has degrown by 2.6% sequentially and if you look at from a year-on-year basis, 3%.”
Srini Pallia, page 12 of the filed PDF · View the filing
Management confirmed some deal decisions slipped into Q2 but said the pipeline remains healthy.
Answered by Srini Pallia
Asked by Vibhor Singhal: Were lower total and large deal wins simply a timing issue with deals pushed to Q2?
p. 13
“Some of the decisions on some of these deals have actually slipped to quarter two.”
Srini Pallia, page 13 of the filed PDF · View the filing
Management said the margin impact varies by deal type, with cost-out-focused large deals seeing forward productivity built in, while newer AI service areas are margin accretive.
Answered by Aparna Iyer
Asked by Vibhor Singhal: How do AI-driven deals affect margins compared to the current portfolio?
p. 14
“Wherever the intention is to use AI for you to be able to drive higher productivity and take costs out for a large operations for a client where the cost take-out is priority, you will see that, there will be a lot of productivity, forward productivity that gets baked into deals.”
Aparna Iyer, page 14 of the filed PDF · View the filing
Management declined to break out the guidance further.
Answered by Aparna Iyer
Asked by Rajiv Berlia: Can the Q2 revenue guidance be broken into organic and inorganic contributions?
p. 15
“We're not doing that, Rajiv. We're not breaking our guidance out.”
Aparna Iyer, page 15 of the filed PDF · View the filing
Management confirmed the insourcing impact is no longer a factor.
Answered by Aparna Iyer
Asked by Rajiv Berlia: Is the client insourcing impact on BFSI fully behind the company?
p. 15
“No, I think that is behind us, Rajiv.”
Aparna Iyer, page 15 of the filed PDF · View the filing
Management said AI is compressing traditional IT and BPO budgets while shifting spend to AI, creating both competition and new opportunity, with margin impact depending on deal type.
Answered by Srini Pallia
Asked by Abhishek Bhandari: Has competition in large deals increased, and how is margin being protected amid competitive pressure?
p. 16
“if it is a net new reimagine AI kind of projects and programs, the margins are much better. But if it's a traditional work where you have to bring in the productivity through AI at the same time help the clients to shift the budgets, there are competitive pressures.”
Srini Pallia, page 16 of the filed PDF · View the filing
Risks flagged
Soft demand and slower discretionary spend in BFSI
p. 7
“Discretionary spend has been slower and some of the decision making has been slower, but we think it will come back.”
Srini Pallia, page 7 of the filed PDF · View the filing
Sustained pressure in US Healthcare ecosystem affecting payers and providers
p. 12
“which is facing sustained pressure both from structural and demographic forces due to the situation which is very much within the -- in the US context, right?”
Srini Pallia, page 12 of the filed PDF · View the filing
Softness in Americas market
p. 4
“Americas remain soft, declining both sequentially and on a year-on-year basis.”
Srini Pallia, page 4 of the filed PDF · View the filing
Softness in energy, manufacturing and resources sector in Europe
p. 4
“However, energy, manufacturing and resources remains soft.”
Srini Pallia, page 4 of the filed PDF · View the filing
Increased competition in large deals compressing traditional IT and BPO budgets
p. 15
“So what that means is from a client perspective, the traditional IT, the traditional BPO that we do and the support aspects of it, those budgets are getting compressed.”
Srini Pallia, page 15 of the filed PDF · View the filing
Macro uncertainty and geopolitical instability
p. 5
“As we continue to navigate macro uncertainty and geopolitical instability, our priority is to remain disciplined in execution, helping clients navigate complexity and creating sustainable value for all our stakeholders.”
Srini Pallia, page 5 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.