Wipro's Q2 FY27 results show a 1.4% year-on-year drop in net profit to Rs 3,201 crore amid a 9.1% rise in gross revenue. The IT services segment saw a modest increase in revenue, while operating margins improved slightly, reflecting resilience amid a cautious business outlook.
- Net profit down 1.4% YoY to Rs 3,201 crore in Q2 FY27
- Revenue up 9.1% YoY to Rs 24,752.7 crore with 0.3% IT services growth
- Q3 IT services revenue forecast expects -1.5% to +0.5% sequential change
What happened
Wipro reported a 1.4% year-on-year decline in net profit to Rs 3,201 crore for the second quarter of fiscal year 2027, declining 4.7% sequentially from Q1 FY27. Meanwhile, the company’s gross revenue rose 9.1% year-on-year to Rs 24,752.7 crore, although it slipped 1.1% sequentially. The IT services segment posted a marginal 0.3% increase in revenue to $2,611.5 million, showing flat performance when compared sequentially in constant currency terms.
Operating margins in the IT services segment improved marginally by 0.5 percentage points sequentially to 16.5%, even as total bookings dropped dramatically by 22.9% sequentially in constant currency. Large deal bookings fell sharply by 58.6% quarter-on-quarter to $674 million, reflecting a cautious client spend environment. Earnings per share nudged up by 4.2% year-on-year to Rs 3.23, supported by robust operating cash flow that was 166% of net profit for the quarter.
Why it matters
Wipro’s results reveal resilience in revenue growth against a backdrop of reduced client spending on large contracts, a challenge impacting much of the Indian IT sector. The firm’s ability to expand operating margins sequentially suggests improved cost management despite ongoing investments in workforce and strategic initiatives. This mix of results indicates that while demand pressures persist, Wipro’s transformation and AI-driven strategy are beginning to gain traction.
The company's focus on consulting-led, AI-powered solutions positions it to capitalize on longer-term technological shifts that could unlock new revenue streams. This is critical given the modest growth expectations for the near term, as Wipro navigates a complex global IT services market with cautious client budgets. Strong operating cash flow also reinforces financial stability and capacity to invest in future growth areas.
What to watch next
For the third quarter of FY27, Wipro projects IT services revenue to range between $2,571 million and $2,625 million, which could mean a sequential decline of up to 1.5% or growth of just 0.5% in constant currency terms. Market participants will closely monitor whether the company can reverse the sharp drop in large deal bookings as well as sustain margin improvements while driving revenue growth.
Key indicators to watch include the success of strategic AI and transformation initiatives highlighted by the leadership, alongside trends in client spending patterns globally. Attrition rates and hiring trends will also be important as Wipro balances investment in talent with cost efficiency. Additionally, the broader market reaction to these results and Wipro’s guidance will likely influence sentiment around the stock and its valuation trajectory.