Shares of Wipro Ltd rose 3.45% to ₹269.60 on Friday after the company reported a better-than-expected Q1 FY26 performance, driven by robust large deal wins, operational efficiencies, and improved margins.
India’s fourth-largest IT company reported a 10% year-on-year increase in net profit to ₹3,336 crore, beating analyst estimates, though sequentially down 7%. Revenue for the quarter stood at ₹22,134 crore, marginally up from ₹21,964 crore last year.
In constant currency terms, revenue declined both sequentially and annually, at $2,590 million, down 2% QoQ and 2.3% YoY. The IT services revenue came in at $2,587.4 million, down 0.3% QoQ and 1.5% YoY.
Wipro declared an interim dividend of ₹5 per share, with a record date of July 28 and payout on or before August 15.
Key operational highlights:
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EBIT margin expanded by 80 basis points YoY to 17.3%, aided by cost controls.
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Total bookings (TCV) jumped to $4,971 million, up from $3,955 million QoQ and $3,284 million YoY.
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Large deal TCV more than doubled QoQ to $2,666 million, with 16 large deals signed, including two mega deals.
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Q2FY26 IT services revenue guidance is set at $2,560–$2,612 million, implying a sequential growth of -1% to +1%.
CEO Srini Pallia said, “In a quarter shaped by macroeconomic uncertainty, we addressed clients’ needs for efficiency and cost optimisation. Building on last quarter’s momentum, and with AI central to strategies now, we are delivering real impact at scale.”
Brokerages react
Morgan Stanley maintained its ‘Equal-weight’ rating, raising the target price from ₹265 to ₹285, citing strong Q1 performance and large deal wins that could accelerate growth in H2FY26.
Nuvama Institutional Equities maintained a ‘Hold’ rating while increasing the target price from ₹260 to ₹270, valuing the stock at 20x FY27E PE. It highlighted robust annual contract value growth and a strong pipeline but moderated margin expectations slightly to 17–17.5% as investments ramp up.
While brokerages acknowledged a solid start to FY26, they stressed the need for consistent execution in subsequent quarters.
