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Informist, Thursday, Jul. 16, 2026

 

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--Wipro: Spending is measured, with longer decision cycles
--Wipro: Deal pipeline healthy despite selective spending by customers
--CONTEXT: Wipro mgmt's comments in post-earnings virtual press conference
--Wipro: Conversations around AI among clients becoming very intense
--Wipro: Seeing momentum building up in BFSI in Americas
--Wipro: Continue to see momentum building in tech, communications segment
--Wipro: Wage hikes, AI investments impacted bottom line Q1
--Wipro: Weaker rupee, operational efficiencies helped contain PAT fall Q1
--Wipro: Impact on margins due to investment is short-term
--Wipro: Will use traditional levers, AI to improve margins
--Wipro: Seeing client-specific issues in Americas 1
--Wipro: Need to improve win ratios in energy, mfg, resources segment
--Wipro: Some large deals spoken about last time are getting converted
--Wipro: Overall IT budgets of clients not rising dramatically
--Wipro: Will hire based on demand, not setting target for now
--Wipro: Slow ramp-up of deals holding revenue growth back
--Wipro: Not worried about acquiring contracts from Alpha Net Consulting
--Wipro: Did not hire any freshers in Q1
--Wipro: Capco pivotal to co's strategy for BFSI segment
--Wipro: Hired about 7,500 freshers last year, have good inventory
 

 

MUMBAI/NEW DELHI – Wipro Ltd. Thursday said its banking, financial services, and insurance segment has faced some challenges in the Americas but the segment's performance in areas such as Europe was robust in the June quarter. "We had called out a client-specific issue that should be behind us in Q1, and that's why we are sounding positive about the momentum that's building up in Q2 (September quarter)," Wipro's Chief Financial Officer Aparna Iyer told reporters in a post-earnings press conference.
 

"For Q2, at this point in time, if I were to give a little bit of a colour from a market perspective, Americas, if you look at it, BFSI, we are seeing a good momentum going in," Wipro's Chief Executive Officer and Managing Director Srinivas Pallia said. Wipro's BFSI segment contracted 1.2% sequentially but grew 2.6% on year in constant currency terms in the June quarter. The BFSI segment contributes the most to the company's earnings across sectors, forming around 34% of its top line. Within this segment, Pallia laid emphasis on the importance of Capco as the sole strategy for the entire pay-for-sales segment.
 

For the June quarter, Wipro reported a consolidated net profit of INR 33.52 billion on revenue of INR 244.79 billion. Describing the current market scenario, Pallia said while there are uncertainties weighing on decisions taken by their clients, technology investments have not slowed down. "They (clients) have become more focused. Our clients continue to invest in AI, data, cloud, modernisation, cybersecurity, and also productivity-led transformation at an organisation level," he said.
 

Client spending is more measured, and has longer decision cycles. The disruption caused by artificial intelligence is expanding the market. "Conversations around AI are becoming very intennse...clients are more focused on net productivity and require a tighter linkage between their investments and their outcomes," Pallia said. However, Wipro's order pipeline is healthy.
 

In the Americas market, the company is facing some challenges in the energy, manufacturing and resources segment. In this segment, while the pipeline is good, the company wants to improve its win ratios. 
 

The tech major's operating margin for the June quarter was 16%, compared to 17.3% a quarter ago. The company blamed the fall partially on the incremental impact of salary increase and investments made towards AI. These two were offset partially by the benefit reaped from the depreciation of the rupee against the dollar and other operational efficiencies. "We remain focused on returning back to our previously stated narrow band over the next few quarters," Iyer said. The company stressed that the effect of investments related to AI on margins were only short-term in nature.
 

Wipro's technology and communications segment grew just 0.2% sequentially and 10.8% on year, in constant currency terms, for the June quarter. The company is seeing momentum build up in this sector, while it has booked some "good" wins in the consumer segment, the company said. 
 

In terms of geographies, all the strategic market units the company operates in contracted sequentially in the June quarter, except Asia Pacific, West Asia, and Africa. Wipro is seeing a healthy order pipeline across various regions in Europe, especially in the UK and Nordic areas. The company used the trends seen in these regions to call out a wider emerging trend: clients are looking beyond technology modernisation alone, the focus is moving towards AI-enabled operating models that improve service quality, reduce operational complexity, and strengthen resilience.  
 

For the June quarter, Wipro reported total bookings of $3.4 billion, down 2.4% on quarter in constant currency terms. The total contract value of large deals grew nearly 13% on quarter, in constant currency terms to $1.6 billion. Large deals that were part of the conversations in the June quarter a year ago are now seeing conversions, the company said. Even as clients continue their shift towards AI significantly, the overall tech budgets of clients have not risen dramatically, Wipro said. 
 

On its hiring strategy, Wipro said it hired around 7,500 freshers last year, and has a good inventory of staff currently. "Our stand doesn't change from last quarter. We will continue to look at the demands in our environment and take a call," the company said. Wipro continues to hire staff laterally depending on demand for specific skills. 
 

On Thursday, the company's shares closed 1.8% higher at INR 177.74 on the National Stock Exchange.  End
 

Reported by Anand JC and Shakshi Jain
Edited by Avishek Dutta
 

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