Financial Wire

Research Alert: Wipro: Fy 26 Net Profit In Line, Earnings Supported By Margins

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

WIPRO's FY 26 net profit rose 1% Y/Y to INR132B, supported by IT services operating margin expansion to 17.2% (+0.2%-pts) despite revenue declining 2% in constant currency. Q4 FY 26 showed sequential improvement with net profit up 12% Q/Q to INR35B and revenue increasing 3% Q/Q to INR242B, reflecting improved execution. Large deal bookings surged 45% Y/Y to USD7.8B, led by AI-led transformation deals, though revenue conversion remains delayed due to longer implementation cycles. Management guided Q1 FY 27 IT services revenue to -2% to 0% Q/Q in constant currency, indicating continued soft demand. We believe the divergence between strong bookings growth and revenue performance reflects delayed conversion rather than pipeline weakness, suggesting improving revenue visibility. In our view, sustained earnings improvement will depend on faster conversion of large deals and recovery in discretionary spending, while AI adoption may support margins but could reduce revenue intensity.

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Research Alert: Wipro: Fy 26 Net Profit In Line, Earnings Supported By Margins | Financial Wire