📅 Published on: July 23, 2025
✍️ By: Stock Result Team
Wipro Limited (NSE: WIPRO) has announced its financial performance for Q1 FY26, reflecting strong margin management and moderate revenue growth. While macroeconomic challenges persist for IT service providers globally, Wipro has managed to protect its profitability and build momentum through a solid deal pipeline.
Here’s a comprehensive breakdown of the results and their implications for investors 👇
💡 Key Financial Highlights – Q1 FY26
| Metric | Q1 FY26 | Q4 FY25 | YoY Change | QoQ Change |
|---|---|---|---|---|
| Revenue | ₹22,831 Cr | ₹22,208 Cr | +2.6% | +2.8% |
| Net Profit | ₹2,857 Cr | ₹2,835 Cr | +5.3% | +0.8% |
| EBITDA | ₹4,151 Cr | ₹4,017 Cr | +3.3% | +3.3% |
| EBIT Margin | 15.5% | 15.5% | Flat | Flat |
| EPS (Basic) | ₹5.31 | ₹5.27 | +5.1% | +0.8% |
✅ Insight: Profitability stayed intact, with net earnings growing at a healthier pace than top-line revenue.
🔍 Segment-Wise Performance
| Segment | Revenue | QoQ Growth | Commentary |
|---|---|---|---|
| IT Services | ₹22,100 Cr | +2.5% | Driven by BFSI and demand in the Americas |
| IT Products | ₹300 Cr | Flat | Steady but a low-focus area |
| ISRE (Govt. Business) | ₹431 Cr | +3.1% | Small contribution, low-margin |
📌 Geography: The Americas remain the dominant contributor, while Europe shows gradual improvement.
📌 Verticals: BFSI and Energy reported decent growth. Retail and Manufacturing sectors showed sluggish demand.
✅ What Worked for Wipro
- Margin Discipline: EBIT margin remained steady at 15.5%—highlighting cost control and operational efficiency.
- Healthy Deal Flow: The company secured new contracts worth $1.3 billion in total contract value (TCV).
- Productivity Gains: Enhanced automation and better resource alignment improved delivery efficiency.
- Profit Growth > Revenue Growth: Sign of internal optimization and stable pricing.
⚠️ Key Concerns
- Modest Topline Growth: 2.8% QoQ growth is below what some top-tier peers have posted.
- Talent Management: Attrition, while improving, continues to challenge operational scalability.
- Weak Sectors: Consumer and industrial sectors remain cautious on IT spending.
📉 Market Reaction
Markets responded with mild optimism. The stock didn’t see a major uptick post-results, indicating investor caution around growth outlook despite profitability.
👥 Institutional and Promoter Activity
- Promoter Holding: Unchanged at 72.93%
- FII/DII Movement:
- FII: Light selling pressure noted, likely pre-result positioning
- DII: Domestic investors continued accumulation at current price levels
📊 Valuation Snapshot
| Metric | Value | Industry Avg |
|---|---|---|
| PE Ratio (TTM) | ~22x | 25–28x |
| Dividend Yield | ~1.4% | Moderate |
💡 Assessment: At ~22x earnings, Wipro is priced reasonably and may appeal to investors looking for value with stable margins.
🔎 What to Watch Going Ahead
- 🔺 Revenue acceleration in the upcoming quarters
- 📉 Attrition rate improvements and hiring trends
- 🌍 Recovery in European markets and traction in AI-driven solutions
- 📝 Deal execution timeline and client conversion
🧠 Final Verdict: Is Wipro a Buy?
If you’re looking for:
✅ Consistency in margins
✅ Exposure to large-cap IT with upside potential
✅ A possible value pick in a slow IT cycle
…then Wipro could be worth accumulating gradually. However, stronger revenue growth will be the key trigger for future re-rating.
💬 What’s Your Take?
Is Wipro undervalued at current levels? Will it outperform in the next two quarters?
Share your thoughts in the comments below.
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