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Wipro Q1FY27: Margin Hit Amidst AI Shift
16 Jul
Summary
- Q2FY27 revenue projected between a 1.5% decline and 0.5% growth.
- Total bookings decreased 2.4% sequentially, but large deals grew.
- IT Services operating margin dropped to 16% sequentially.
Wipro's Q1FY27 performance revealed a notable decrease in its IT Services operating margin, which landed at 16%, a sequential drop of 130 basis points. The company provided a cautious outlook for Q2FY27, anticipating revenue to range from a 1.5% sequential decline to a 0.5% increase.
Despite a 2.4% sequential dip in total bookings to $3.37 billion, Wipro secured significant wins with large deal bookings rising 12.9% to $1.63 billion. CEO Srini Pallia highlighted a sector-wide shift towards AI-enabled operating models, emphasizing Wipro's consulting-led, AI-powered approach.
The IT firm experienced a modest headcount increase, adding 888 employees to reach a total of 243,044. Voluntary attrition remained at 13.9% on a trailing 12-month basis. The board declared an interim dividend of Rs 2 per equity share, with a record date set for July 27.
