Wipro Q1 net profit up 9.8% to Rs 3,336.5 crore; revenue rises marginally to Rs 22,134.6 crore

India's fourth-largest IT services firm, Wipro, on Thursday posted a 9.8 per cent increase in consolidated net profit to Rs 3,336.5 crore for the April-June quarter, buoyed by strong deal wins. The Bengaluru-headquartered firm had logged a net profit of Rs 3,036.6 crore in the year-ago period, according to a regulatory filing. Revenue from operations in the first quarter of FY26 was marginally higher at Rs 22,134.6 crore compared to Rs 21,963.8 crore in Q1 FY25. Sequentially, profit and revenue declined by 7 per cent and 1.6 per cent, respectively. Total bookings during the quarter under review stood at USD 4,971 million, up by 50.7 per cent year-on-year in constant currency. Large deal bookings brought in USD 2,666 million, an increase of 130.8 per cent year-on-year in constant currency. "We started the quarter facing significant macro uncertainty, which kept overall demand muted. Our clients prioritised initiatives with immediate impact, focusing on cost optimisation and vendor consolidation. At the same time, they accelerated their AI, data and modernisation programmes. "We saw a clear trend of many AI projects moving to scale and production, so we quickly aligned with these priorities, deepened our partnerships, and of course secured key deals. The large deals we closed this quarter, and the last quarter, along with a strong pipeline, put us in a good position for the second half of the year," Wipro CEO and MD Srini Pallia said.

Discretionary spend is not uniform and is coming back in certain pockets, he added. Wipro's IT Services segment, which forms the core of its business, generated Rs 22,080 crore in Q1 FY26, a year-over-year growth of 0.8 per cent and a sequential decline of 1.6 per cent. The company has given a sequential guidance of -1 per cent to 1 per cent in constant currency terms. It expects revenue from its IT services segment to be in the range of USD 2,560 million to USD 2,612 million in the September quarter. The IT Products segment generated Rs 72.8 crore in Q1 FY26, a year-over-year growth of 55.2 per cent. Banking, Financial Services and Insurance (BFSI) remained the largest contributor, accounting for 33.6 per cent of IT Services revenue, but saw a revenue decline of 3.8 per cent in constant currency terms. The consumer sector represented 18.6 per cent of IT Services revenue, registering a 5.7 per cent decline in constant currency.

In Energy, Manufacturing and Resources, which made up 17.7 per cent of segment revenue, performance was down by 2.4 per cent in constant currency. Technology and Communications accounted for 15.5 per cent of revenue and was nearly flat for the quarter, dropping 0.3 per cent in constant currency. The Health segment stood out as the only vertical in the positive, contributing 14.6 per cent of segment revenue and delivering a 3.5 per cent growth in constant currency. Employee benefits expense stood at Rs 13,427.5 crore in Q1 FY26, representing 60.6 per cent of revenue from operations. Clients are modernising their IT landscape with a sharp focus on AI-led efficiency, and there is a clear shift towards AI investments, Pallia noted. "AI is no longer a niche. It's becoming essential to how businesses operate at scale. We are building an AI-first, AI-everywhere enterprise focused on solving complex challenges, accelerating delivery, and reimagining operations at scale," he said. He clarified that the company is not building LLMs. Wipro's employee count reduced by 114 quarter-on-quarter during Q1 FY26, bringing the total to 233,232.

Wipro declared an interim dividend of Rs 5 per equity share of par value Rs 2 each to the members of the company, payable on or before August 15, 2025. Wipro CFO Aparna Iyer said that the company will endeavour to pay dividends twice a year, once along with the Q2 results and then along with the Q3 results. Shares of Wipro settled 0.93 per cent lower at Rs 260.25 apiece on the BSE on Thursday. The results were announced after the closing of market hours.