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Informist, Thursday, Jul. 16, 2026

 

--Wipro: Clients moving now after slow decision making in Q1 

--CONTEXT: Wipro mgmt's comments in post-earnings call with analysts 

--Wipro: Targeting AI data, security startups through Wipro Ventures 

--Wipro: Focused on margin growth but also want to invest in AI-native ops 

--Wipro: Weak demand environment reflected in guidance for Q2 

 

By Shakshi Jain and Astha Oriel

 

NEW DELHI – Wipro Ltd. is focused on returning to the frequently stated narrow margin band of 17% to 17.5%, but the company intends to keep investing in its artificial intelligence-native business as well, Chief Executive Officer and Managing Director Srini Pallia said in a post-earnings conference call with analysts on Thursday. "...our mission is clearly to go back to the narrow band that we've been talking about, 17% to 17.5%...Right now, in the context of the volatility that we see, in the context of the revenue situation that we see, right, I do not want to predict exactly when, you know, when we will get there. But the point is that we want to get there," Pallia said, adding that the company also wants to invest in the new AI-native business.

 

Pallia stessed that in an AI-native business, companies require to have the right talent and infrastructure to build new products, platforms, and solutions. 

 

Earlier this year, Wipro announced the launch of a dedicated AI-native business and platforms unit to complement its services business. With targeted investments and a distinct operating model, the unit aims to accelerate the development of enterprise grade agentic AI solutions and enhance outcome-based value creation.

 

For the June quarter, the Bengaluru-based tech major reported a contraction in the operating margin for its information technology services business, a key segment of the company, by 130 basis points at 16% from 17.3% a quarter ago.

 

Overall, the company reported a consolidated net profit of INR 33.52 billion for the quarter, down over 4% sequentially. The bottom line was flat on a year-on-year basis. The Bengaluru-based firm's consolidated revenue rose 1% sequentially and nearly 11% on year to INR 244.79 billion.  

 

Wipro is targeting AI data and security startups through Wipro Ventures, the corporate investment arm of the company, the management said. Wipro Ventures bridges the gap between emerging startups and enterprise customers, investing in early to mid-stage companies building innovative enterprise software solutions. 

 

Commenting on the larger demand environment, the management said some large deals are taking longer to ramp up. "Discretionary spend has been lower and some of the decision-making has been slower...," Pallia said, adding that clients are now moving forward in some of these deals. The management also said that the weak demand atmosphere was reflected in its sales guidance for the September quarter.

 

Wipro expects revenue from its IT services business for the September quarter to be in the range of $2.57 billion to $2.63 billion. This translates to sequential growth of (-)1.5% to 0.5% in constant currency terms.

 

On Thursday, Wipro's shares ended at INR 177.74, up 1.8% from the previous close. Market participants will react to the company's June quarter results on Friday as the company detailed its earnings after market hours.  End

 

US$1 = INR 96.35

 

Edited by Avishek Dutta

 

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