Wipro Q2 Results: Net profit declines marginally YoY to Rs 3,201 crore, but revenue rises 9%
Wipro Q2 Results: Wipro reported a 1.4% year-on-year decline in Q2FY27 net profit to Rs 3,201 crore, while revenue rose 9.1% to Rs 24,752.7 crore. IT services revenue increased 0.3% to $2,611.5 million, while operating margin expanded 0.5 percentage points sequentially to 16.5%. The company expects IT services revenue to decline up to 1.5% or grow 0.5% sequentially in Q3FY27.
IT giant Wipro disclosed its second quarter financials for the fiscal year 2027, revealing a slight decline in net profit margin year-over-year. Despite an overall increase in revenue, Wipro's net profit margin fell by 1.4% compared to the previous year, settling at Rs 3,201 crore. The company's gross revenue rose by 9.1% year-on-year, reaching Rs 24,752.7 crore. Sequentially, revenue dipped by 1.1%.
The IT services segment contributed significantly to Wipro's revenue, growing by 0.3% year-on-year to $2,611.5 million. In non-GAAP constant currency terms, IT services revenue expanded by 0.6% year-on-year and remained flat sequentially. Total bookings stood at $2,595 million, indicating a substantial 22.9% decline sequentially in constant currency terms. Major deal bookings saw a steep 58.6% decrease quarter-over-quarter, falling to $674 million.
Operating margin for the IT services segment remained steady at 16.5% in Q2FY27, down 0.2 percentage points year-over-year but up by 0.5 percentage points sequentially. Earnings per share (EPS) increased by 4.2% year-on-year to Rs 3.23. On a quarter-over-quarter basis, EPS rose by 0.9%. Operating cash flows amounted to Rs 5,300 crore, reflecting a substantial 61.3% growth sequentially and equating to 165.8% of net profit for the quarter.
Voluntary attrition throughout the trailing 12-month period stood at 13.8%. Wipro anticipates revenue from its IT services business to fluctuate between $2,571 million and $2,625 million in Q3FY27, suggesting a sequential growth range of -1.5% to 0.5% in constant currency terms. CEO and Managing Director Srini Pallia expressed optimism about the company's strategic investments, which are yielding positive results by opening new markets, attracting new clients, and deepening existing relationships.
He also highlighted that the company's consulting-led, AI-powered strategy is creating larger transformation opportunities, with artificial intelligence poised to be a key driver of long-term growth in technology and business transformation.
Chief Financial Officer Aparna Iyer emphasized the company's ability to expand its operating margin by 0.5 percentage points sequentially to 16.5% despite continued investments in its business and workforce. She further noted that operating cash flow remained robust at 166% of net profit in Q2FY27. Wipro's shares closed at Rs 174.05 on the trading session, a 1.82% increase from the previous close of Rs 170.92.
Year-to-date, Wipro's stock has witnessed a decline of nearly 35%, according to NSE data. The company's total market capitalisation stands at Rs 1,72,402 crore as of the reporting date.
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