Wipro’s results for the July–September quarter of FY2027 have drawn attention to its recovery strategy, with investors closely watching whether the company can improve revenue growth and secure larger contracts in the coming quarters.
Wipro Q2 Results: Revenue Rises, but Profit Declines
Wipro reported consolidated revenue of ₹24,753 crore for the September quarter, an increase of 9.1% year-on-year. However, net income declined by approximately 1.9% to ₹3,201 crore.
The performance of its core IT services business was more subdued. IT services revenue reached approximately $2.61 billion, increasing just 0.3% year-on-year on a reported basis. On a constant-currency basis, revenue was up 0.6% year-on-year and remained flat sequentially.
New Deal Bookings Fall Sharply
One of the biggest concerns is the decline in new business bookings. Wipro’s total bookings reached $2.595 billion during the quarter, falling 22.9% sequentially on a constant-currency basis.
Large deal bookings declined even more sharply, dropping 58.6% sequentially to $674 million. The company attributed the weaker booking performance partly to delays in closing certain deals, which it expects could be completed in the December quarter.
The decline is significant because new contracts help build the pipeline for future revenue. If deal closures remain weak, the company could face additional pressure to accelerate growth.
Wipro Trails Some Major IT Rivals
Wipro’s recovery is progressing more slowly than that of some competitors. During the same quarter, Tata Consultancy Services (TCS) reported sequential revenue growth of 0.2%, while HCLTech reported sequential growth of around 2%, according to The Economic Times.
Tech Mahindra also reported a stronger quarter, with revenue rising 15.6% year-on-year, supported by the ramp-up of large deals. These companies have different business mixes and reporting metrics, but their results underline the competitive pressure facing Wipro.
Operating Margins Show Some Improvement
There was a positive development in Wipro’s operating performance. Its IT services operating margin improved by 0.5 percentage points to 16.5% compared with the previous quarter.
The improvement was supported by operating efficiencies and favourable currency movements, among other factors. However, the margin remains below the company’s medium-term target range of 17%–17.5%.
This means Wipro has made some progress on profitability, but it still needs stronger revenue and deal momentum to support a broader recovery.
What Is Wipro Expecting in the Next Quarter?
For the quarter ending December 31, 2026, Wipro expects IT services revenue to be between $2.571 billion and $2.625 billion. This guidance translates into sequential constant-currency growth ranging from a 1.5% decline to a 0.5% increase.
The forecast suggests that the company is preparing for another period of limited growth. Management expects deal momentum to improve, but the pace of new contract closures and customer spending will be important factors in determining whether that improvement materialises.
AI and Changing Client Demand Add to the Challenge
The IT services industry is undergoing changes as customers increasingly focus on artificial intelligence, cost efficiency and business transformation. Providers are competing to secure large technology contracts while adapting their services and pricing strategies.