Wipro Q2 Net Profit Slips 1.4% to ₹3,201 Crore as Large Deal Wins Plunge

Bengaluru-based IT services major Wipro Ltd announced its financial results for the second quarter ended September 30 (Q2 FY27), posting a 1.4% year-on-year decline in consolidated net profit to ₹3,201 crore. Sequentially, net profit declined 4.5% from ₹3,352 crore posted in the preceding quarter.

Gross revenue from operations expanded 9.1% year-on-year and 1.1% quarter-on-quarter to ₹24,753 crore (₹24,752.7 crore). Both headline numbers trailed Bloomberg consensus estimates, which had projected a net profit of ₹3,310 crore and revenue of ₹24,773 crore.

Key Earnings Highlights

• Net Profit: Consolidated net profit attributable to equity holders stood at ₹3,201 crore (₹3,200.6 crore), down 1.4% YoY and 4.5% QoQ.
• Gross Revenue: Total revenue rose 9.1% YoY to ₹24,753 crore compared to ₹22,697.3 crore in Q2 FY26.
• IT Services Revenue: Revenue from IT services came in at $2,611.5 million, up 0.3% YoY but down 0.1% sequentially. In constant currency (CC) terms, segment revenue grew 0.6% YoY and remained flat QoQ.
• Operating Margin: IT services operating margin expanded 50 basis points sequentially to 16.5%, though it remained short of the management's target band of 17% to 18%.
• Cash Flow: Operating cash flows stood at ₹5,300 crore, jumping 61.3% QoQ and reaching 165.8% of quarterly net profit.

Sharp Decline in Deal Bookings and Tepid Guidance

Deal momentum softened considerably during the quarter. Total bookings fell to $2.595 billion, down 22.9% sequentially in constant currency terms. Large deal bookings—contracts valued at $30 million and above—plunged 58.6% quarter-on-quarter in constant currency to $674 million.

Reflecting sluggish demand conversion, the company projected muted near-term performance. Wipro guided for Q3 FY27 IT services revenue in the range of $2,571 million to $2,625 million, representing sequential constant-currency growth between -1.5% and +0.5%.

Segment Trends and Management Commentary

Sectoral performance showed divergence across key verticals. Banking, Financial Services, and Insurance (BFSI) supported the top line with a 1.3% sequential rise, while the European geography reported constant-currency growth of 5.1% year-on-year. However, weakness in US clients weighed heavily on the Health business (down 6.5%) and Energy, Natural Resources & Utilities (down 6.6%).

“Despite a challenging macroeconomic environment, our business remains resilient. Artificial intelligence (AI) will accelerate new growth avenues, and push demand for higher value transformation. Signs of that are already evident in the momentum that we are seeing in our AI-led series,” said Chief Executive Officer and Managing Director Srini Pallia.

Aparna Iyer, Chief Financial Officer, noted that the company expanded operating margins by 50 basis points quarter-on-quarter to 16.5% despite ongoing business and talent investments, aided by strong cash generation.

Headcount and Market Reaction

Wipro’s total employee headcount declined by 6,716 during the quarter to 236,328. Voluntary attrition on a trailing 12-month basis remained flat at 13.8%. The IT exporter onboarded roughly 1,000 fresh graduates in the first half of the fiscal year and reaffirmed its intention to hire approximately 7,500 campus recruits across the full financial year.

Ahead of the post-market results announcement, Wipro shares closed at ₹174.05 on the National Stock Exchange (NSE), up 1.82% on Thursday. The stock has faced significant pressure across the calendar year, down approximately 35% year-to-date, reflecting persistent investor scrutiny over discretionary technology spending.

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