Forbes India
Wipro on Thursday reported a 1.89 percent year-on-year decline in consolidated net profit for the March-ended quarter. The number for Q4 FY26 fell to Rs3,501.8 crore from Rs3,569.6 crore in the same period last year. Revenue from operations, on the other hand, rose by 7.6 percent to Rs24,236.3 crore in the fourth quarter, according to a regulatory filing. On a sequential basis, profit increased 12.2 percent while revenue rose 2.8 percent.“Geopolitical and policy disruptions have become the new normal… despite these headwinds, IT spending has shown resilience,” Chief Executive Officer and Managing Director Srini Pallia said, adding that client contracts are increasingly becoming modular and linked to outcomes.Muted growth for IT servicesThe company reported IT services revenue of $2.65 billion for the March-ended quarter, up 0.2 percent sequentially, but down 0.2 percent year-on-year in constant currency terms. For the full financial year ended March 31, 2026, IT services revenue declined 1.6 percent in constant currency.At the same time, deal activity remained strong. Wipro closed 14 large deals worth $1.4 billion in the quarter, while total order bookings stood at $3.5 billion, up 3.2 percent sequentially.The divergence between deal wins and revenue growth was visible across segments. The BFSI vertical was impacted by delays in ramping up previously won deals and client-specific issues, while Europe and APMEA (Asia-Pacific, Middle East and Africa) saw traction driven by sectoral demand.AI-first approach“To strengthen our position in an AI-first world, we are pivoting to a services-as-a-software model through the AI Native Business & Platforms unit. Our strategic deal with the Olam Group further reflects the investments we are making to capture opportunities at scale,” Pallia said.The CEO highlighted that they were not calling out AI revenue separately. “For us what’s most important is that any new project we take must be AI-first as an approach," he said. “AI is front-and-centre of what clients are trying to do… not just for productivity but also to create new business.”Also Read: TCS announces hikes, $2.3 Bn in AI revenues Near-term growth pressuresThe company expects near-term growth to remain under pressure, with IT services revenue for the June-ended quarter to be in the range of $2.597 billion to $2.651 billion, a possible decline of up to 2 percent or flat growth in constant currency terms.Chief Financial Officer Aparna Iyer said margins are likely to remain within a narrow band despite near-term headwinds, including wage hikes and the impact of recent large deal wins.Operating margin for the March-ended quarter stood at 17.3 percent, down 30 basis points sequentially, while full-year margin improved to 17.2 percent.Wipro's buybackAlongside its results, Wipro announced a share buyback of up to Rs15,000 crore at Rs250 per share, its largest so far. The buyback, which covers up to 60 crore shares or 5.7 percent of equity, is subject to shareholder approval. Iyer claimed this was the biggest buyback announced by the company. “Our endeavour has always been to return a substantial portion of the cash generated to shareholders,” she said, adding that Wipro distributed $1.3 billion through dividends during the year, taking its three-year payout ratio to 88 percent.The company also reported operating cash flow at 112.6 percent of net income for the year.Attrition in Wipro’s IT services business stood at 13.8 percent on a trailing 12-month basis, continuing a gradual decline through the year.Full-year performanceFor the financial year ended March 31, Wipro reported revenue of Rs92,624 crore, up 3.96 percent year-on-year, while net profit rose 0.47 percent to Rs13,197.4 crore.Within this, its core IT services business remained under pressure, with revenue declining 0.3 percent year-on-year and 1.6 percent in constant currency terms.Despite this, large deal bookings rose 45.4 percent during the year to $7.8 billion, while total bookings increased 14 percent to $16.4 billion.Last week, Tata Consultancy Services (TCS) reported $2.3 billion in annualised AI revenues and total contract value of $40.7 billion for the financial year ended March 2026. However, TCS also reported a 0.5 percent decline in dollar revenue and a 2.4 percent fall in constant currency terms, indicating that deal wins have yet to fully translate into growth.On Thursday, the board also approved the reappointment of Tulsi Naidu as an independent director for a second term of five years starting July 1, subject to shareholder approval.Shares of Wipro settled 0.19 percent higher at Rs210.2 on the BSE on Thursday. The results were announced after market hours.HCL Tech and Infosys are expected to announce their results next week.
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