After muted growth of TCS and HCLTech, and a robust profit of Tech Mahindra, Wipro kicked off FY26 on a cautiously optimistic note.
The IT major reported a 10.9% year-on-year rise in net income to ₹3,336.5 crore, even as revenues fell 2.3% in constant currency terms.
Sequentially, profits declined 6.7% quarter-on-quarter, while revenue fell 1.6% for the same period.
However, the company reported blockbuster $2.7 billion in large deal bookings, representing a whopping 131% year-over-year increase.
During the earnings call, CEO Srini Pallia stated that Wipro secured a large deal in the quarter, which has the potential to become a mega deal. “We are seeing a clear shift towards AI investments,” he added.
Total bookings for the quarter stood at $5 billion, up 50.7% YoY and 24.1% QoQ in constant currency terms. Pallia said that “AI is no longer experimental, but it’s central to our clients’ strategies.” He further added that the company closed 16 large deals this quarter, including two mega deals.
“AI is no longer a niche. It’s becoming essential to how businesses operate at scale,” he added.
Wipro reported that across sectors—from banking to semiconductors to telecom—AI is becoming central to transformation strategies. “We are building an AI-first, AI-everywhere enterprise focused on solving complex challenges, accelerating delivery and reimagining operations at scale,” Pallia said.
Operating margin came in at 17.3%, up 0.8% YoY, though it dipped 20 basis points compared to the previous quarter. Operating cash flow remained strong at 123.2% of net income.
On 16 July, at Wipro’s 79th Annual General Meeting, chairman Rishad Premji underscored the company’s commitment to agentic and generative AI, sharing that Wipro has made more than 200 AI agents for enterprises.
Premji noted that Wipro is moving from AI-augmented workflows to fully autonomous systems, marking a new phase in the company’s digital evolution. “Agentic AI is also making a tangible impact across Wipro’s internal operations,” he said.
Momentum Slows, but Deal Wins Surge
In Q4 FY25, Wipro reported ₹3,588 crore in net profit and 17 large deal wins worth $1.8 billion, taking its total large deal tally for FY25 to $5.4 billion.
The sharp jump in large deal bookings to $2.7 billion this quarter represents a 49.7% increase QoQ, largely driven by client demand for cost optimisation and vendor consolidation.
In Q4, Wipro had already missed its constant currency guidance, and Q1’s performance again failed to meet expectations.
Guidance for Q2 FY26 remains muted, with the company expecting sequential growth of between -1% and +1% in constant currency terms.
Despite these deals, Wipro’s Q1 numbers trail both TCS and HCLTech in terms of revenue growth and profit momentum.
TCS reported revenue of ₹63,437 crore, up just 1.3% YoY, but down 3.1% in constant currency, making it another poor quarter for the company. Meanwhile, net income rose 6% YoY to ₹12,760 crore.
TCS also maintained stable profit margins despite increases in hiring and investments in GenAI.
HCLTech, meanwhile, reported a net profit of ₹3,843 crore, down from ₹4,257 crore in the same quarter of the previous year, and the company announced a 25% YoY jump in bookings with revenue of ₹30,349 crore.
AI is Still the Core Narrative
Wipro continues to position AI at the heart of its enterprise strategy. Pallia reiterated that AI is central to all client engagements, and the company is delivering “impact at scale.”
While the firm previously revealed internal AI transformations like the LLaMB platform and AI agent rollouts, this quarter lacked detailed updates on execution metrics or GenAI-driven revenue streams.
TCS, in contrast, said that GenAI had moved from pilots to production across several verticals. HCLTech is also investing heavily in AI centres and vertical-specific solutions, indicating faster go-to-market efforts.
Meanwhile, the company reported operating cash flows of ₹4,110 crore, which is 123.2% of its net income. CFO Aparna Iyer said that over the past six months, the tech company returned more than $1.3 billion to shareholders.
While attrition remained high at 15.1%, hiring remained conservative, in line with the broader industry slowdown in fresher onboarding. “We are very comfortable with this kind of a range of attrition,” said Saurabh Govil, CHRO of Wipro, adding that the company has a good supply and bench.
Alongside this shift, the IT major is nurturing an AI-first workforce. Most employees have completed foundational training in generative AI, and more than 87,000 have received advanced upskilling tailored to their roles, which includes teams in HR, sales, finance, and delivery, the company said.
During the AGM, Pallia said, “In the fourth quarter of FY25, uncertainty deepened with new headwinds regarding the direction and quantum of tariffs.”
The company had also committed $200 million to Wipro Ventures, a strategic investment arm of Wipro Ltd., and announced major wins across BFSI, telecom, and energy sectors.
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