Wipro Misses Revenue Estimate, Flags Soft Spending

Mumbai, April 16: Wipro reported a softer-than-expected March quarter performance, with revenue missing Street estimates, underscoring continued demand weakness in the global technology spending environment.

The IT major posted consolidated revenue of about ₹24,236 crore ($2.60 billion) for the fourth quarter of FY26, marking a 7.7 per cent year-on-year increase.

Demand Concerns Weigh

The miss was largely attributed to cautious client spending, a trend that has been weighing on the broader Indian IT sector. Enterprises, particularly in key global markets, have remained wary of committing to large discretionary tech projects amid macroeconomic uncertainty.

A notable drag also came from reduced business with key client Estée Lauder, highlighting client-specific headwinds alongside broader industry challenges.

Profit and Margins Under Pressure

Net profit slipped around 2 per cent year-on-year to roughly ₹3,500 crore, even as revenue grew modestly—reflecting margin pressures from higher costs and weak deal momentum.

The quarter’s performance aligns with expectations of a “mixed” showing, where modest revenue growth is offset by profitability pressures tied to wage hikes, investments, and subdued discretionary spending.

Buyback Cushions Sentiment

In a move aimed at boosting investor confidence, Wipro’s board approved a ₹15,000 crore share buyback.

The buyback is seen as a key positive, signalling management’s confidence in the company’s financial position even as near-term growth remains under pressure.

Under the Hood

Three of its five business verticals declined during the quarter, with the energy segment leading the fall with a 5.9 per cent drop. The banking, financial services and insurance (BFSI) vertical—its largest, contributing roughly a third of overall revenue—also slipped 0.5 per cent.

Total deal wins for the quarter stood at $3.5 billion, improving from a six-quarter low of $3.33 billion in the previous quarter, but still lower than the $4 billion recorded a year ago.

During the period, the company also announced a deal with US-based insurance provider TruStage, though it did not disclose the contract value.

Sectoral Context

Wipro’s results come at a time when India’s $250+ billion IT services industry is grappling with slowing global tech demand. Larger peer Tata Consultancy Services recently delivered a stronger-than-expected performance, highlighting a divergence in execution within the sector.

However, the broader narrative remains one of caution. Delays in decision-making and reduced discretionary spending continue to impact deal flows, especially in verticals like retail and consumer.

What Next?

Looking ahead, Wipro has guided for sequential revenue growth in the range of -2.0 per cent to flat in constant currency for the June quarter, unchanged from the prior period, indicating continued caution around demand visibility.

For now, the Q4 print reinforces a familiar theme: growth is holding up—but just barely—while profitability and visibility remain under strain.

Source:

• • NSE