Wipro’s March quarter (Q4) performance was weighed down by macro uncertainties and client-specific execution delays. Sequential constant currency (CC) revenue grew 0.2% – at the lower end of the 0-2% guidance – and missed the consensus estimate of 0.9%.
Revenue growth was uneven and led by the verticals of technology & communications, consumer, energy, manufacturing and resources. The miss was due to headwinds in the organic business in the America region.
This included slower deal ramp-ups, issues in select BFSI accounts and a sharp decline in the healthcare segment due to seasonality and policy changes. Manufacturing continued to be affected by pressure from tariffs and demand uncertainty. Wipro’s revenue declined 0.3% year-on-year during FY26.
Wipro’s Q1FY27 guidance fell short of analyst expectations, pointing to a weak start to FY27. Sequential CC guidance of -2% to 0% suggests another soft quarter even after including the partial contributions from two large deals (Olam Group and Alpha Net).
The total contract value (TCV) of deal wins at $3.46 billion in Q4 was lower than the past four-quarter average of $4.2 billion. Wipro closed 14 large deals with a TCV of $1.4 billion, driven by traction in vendor consolidation and cost takeout. FY26 deal wins at $16.4 billion rose about 15%.
Further, its top client saw a sequential revenue drop of 8% in Q4, which points to volatility in large accounts, said Motilal Oswal Financial Services. The brokerage estimated an organic sequential CC revenue decline of 1.8% in Q1FY27.
The Wipro management said the sharp sequential decline in top clients is temporary and not a structural concern. It expects normalization from Q2FY27. However, near-term revenue visibility can be clouded by delays in deal ramp-ups and seasonality.
Margin headwinds
The Ebit (earnings before interest and tax) margin at 17.3% dipped 30 basis points sequentially due to salary hikes (rolled out from 1 March) and DTS Harman integration costs. The FY26 Ebit margin inched up 15 bps to 17.2%.
However, the Q1FY27 margin faces headwinds from the impact of the remaining two months of wage hikes, a ramp-up of lower-margin deals and continued investments in AI platforms/Wipro Intelligence.
Wipro’s AI strategy has entered the next phase with a strategic pivot. It launched the AI-Native Business & Platforms Unit, which is a specialized division designed to accelerate AI-powered transformation by transitioning from traditional IT services to ‘services as a software’ model.
To offset margin pressures, it plans to drive operational efficiencies through productivity improvements and cost optimization.
Wipro declared a buyback of 600 million shares worth ₹15,000 crore at ₹250/share (a premium to Thursday’s closing price of ₹210.20 on the BSE). This is Wipro’s largest buyback.
Return of capital
With an interim dividend of ₹11 and the buyback, the total return of capital to shareholders is about 88% for the three-year period ended FY26, which is in line with its larger Indian peers, Nomura Global Markets Research said in a report.
But that is hardly consoling as triggers for organic revenue growth are missing, leading to cuts in FY27 earnings per share estimates by brokerages.
Reacting to the Q4 results on Thursday, the Wipro stock fell about 3% in early trade on the NSE on Friday. The stock has declined about 25% from its peak of ₹273.10 in December. So far in 2026, its shares have dropped faster than the Nifty IT index.
At an FY28 price-to-earnings estimate, Wipro is trading at 14x, versus 15x and 16x of larger peers Tata Consultancy Services and Infosys, Bloomberg data showed. This gap in valuation could widen.
ICICI Securities noted that the disconnect between Wipro’s deal bookings growth and revenue growth could be due to higher AI-led deflation and market share loss. So, it cautions of a downside risk to the valuation multiple if the revenue growth trajectory does not recover by Q2FY27.