Wipro, Tech Mahindra Q1 Results 2026: Revenue, PAT, guidance, deal wins and key takeaways

Revenue from the information technology business grew 17.6% year-on-year to ₹13,245 crore, while the segment's profit increased 39.9% to ₹2,903 crore.

The business process services (BPS) segment reported an 18.2% increase in revenue to ₹2,466.9 crore. Segment profit for the business rose 30.4% year-on-year to ₹437.6 crore.

From a geographical perspective, Europe delivered the strongest growth, with revenue increasing 12.1% year-on-year. Revenue from the Americas rose 4.8%, while the Rest of the World business recorded 2.5% growth.

Among key industry verticals, manufacturing posted the highest growth with revenue rising 17.2%. Revenue from the banking, financial services and insurance (BFSI) segment increased 8.1%, while the communications vertical recorded 1.3% growth.

For the June-ended quarter (Q1 FY27), Tech Mahindra reported revenue of ₹15,712 crore, registering a 4.2% quarter-on-quarter (QoQ) and 17.7% year-on-year (YoY) increase.

The company's EBIT rose to ₹2,264 crore, up 8.6% QoQ and 53.3% YoY, while the EBIT margin expanded to 14.4%, improving by around 60 basis points sequentially and 330 basis points from a year ago.

The company reported a profit after tax (PAT) of ₹1,465 crore, up 28.4% YoY, while the PAT margin improved by 80 basis points YoY to 9.3%. In dollar terms, revenue stood at $1.66 billion, rising 2.2% QoQ and 6.1% YoY in reported terms, while growing 2.6% QoQ and 6.6% YoY in constant currency.

Tech Mahindra also reported free cash flow of $167 million during the quarter.

Wipro issued a cautious outlook for the September quarter, guiding for IT Services revenue of $2.574 billion-$2.627 billion, which translates into (-1.5%) to (+0.5%) sequential growth in constant currency. This compares with its previous quarter guidance of flat to (-2%) sequential CC growth, indicating a modest narrowing of the guidance band.

Total bookings during the quarter stood at $3.37 billion, down 2.4% QoQ in constant currency. However, large deal bookings rose 12.9% QoQ in constant currency to $1.63 billion, indicating continued momentum in large transformation deals.

In constant currency (CC) terms, IT Services revenue declined 1.2% QoQ and 0.9% YoY.

Revenue from the IT Services segment stood at ₹24,452 crore, up 10.7% year-on-year (YoY) from ₹22,080 crore reported in the corresponding quarter last year.

In dollar terms, IT Services revenue came in at $2,614.5 million, down 1.4% quarter-on-quarter (QoQ) but up 1% YoY. The IT Services EBIT margin stood at 16%, contracting 130 basis points (bps) QoQ and 120 bps YoY.

Wipro Q1 Results: India's fourth-largest IT services company, Wipro, announced its financial results for the June-ended quarter (Q1 FY27) aftermarket hours on Thursday.

The company reported a net profit attributable to equity holders of ₹3,356 crore, largely flat year-on-year compared with ₹3,337 crore in Q1 FY26, but down 4.7% sequentially from ₹3,522 crore reported in the March quarter.

Revenue from operations stood at ₹24,479 crore in Q1 FY27, up 1% sequentially from ₹24,236 crore in the March quarter and 10.6% higher year-on-year than ₹22,135 crore reported in the corresponding quarter last year.

JM Financial said it expects Q1 FY27 constant currency (CC) IT services revenue growth of 0.7% to 6.6% YoY (-1.2% to 2% QoQ, including acquisitions) for the top six companies, impacted by macro uncertainty and AI productivity despite a seasonally strong quarter. Among individual companies, it expects Tech Mahindra and Infosys to post better performance.

The brokerage added that for the mid-tier Indian IT companies (Mphasis, Coforge, Persistent Systems, and Hexaware), it estimates CC revenue growth of 6.7% to 16.2% YoY (0.3% to 5% CC QoQ, including acquisitions), led by Hexaware.

Among the ER&D names, JM Financial expects Tata Technologies to perform well, with 2.4% CC QoQ revenue growth for services. The brokerage further said the BPO cohort continues to deliver as expected, with Sagility likely to report 14.2% YoY growth in Q1.

It also noted that the Indian rupee's nearly 3% QoQ depreciation is likely to partially offset margin pressure despite competitive intensity and AI-driven productivity gains.

The IT major reported a consolidated profit to ₹1,356 crore in the March quarter. In the same quarter last year, the company's profit was ₹1142 crore. Sequentially, or on a quarter-on-quarter (QoQ) basis, the company's profit rose by 21% from ₹1118 crore in Q3FY26.

Tech Mahindra's consolidated revenue from operations for the quarter under review grew by 12.6% YoY to ₹15,076 crore from ₹13,384 crore in Q4FY25. On a QoQ basis, the revenue advanced 5% from ₹14,393 crore in Q3FY26.

At the operating level, Tech Mahindra reported an EBIT of ₹2,084 crore for the quarter, registering a 10.2% sequential rise and a sharp 48.3% YoY growth. EBIT margin expanded to 13.8%. Earnings per share came in at ₹15.24.

For the March quarter ending, the company reported a net profit attributable to equity holders of ₹3,502 crore, down from ₹3,569 crore in the corresponding period last year, marking a marginal decline of 1.85%. However, net profit increased 12.27% sequentially from ₹3,119 crore reported in the December quarter.

The IT major reported revenue of ₹24,236 crore in Q4, registering a 9.77% year-on-year (YoY) increase from ₹22,504.2 crore in the corresponding quarter last year. Sequentially, revenue also grew 3% from ₹23,555.8 crore reported in Q3 FY26.

For the full financial year FY26, Wipro posted a net profit of ₹13,197.4 crore, reflecting a marginal 0.47% increase over FY25. Revenue for the year rose 3.96% to ₹92,624 crore.

The Bengaluru-based IT firm had guided for Q1FY27 revenue to be in the range of flat to a 2% decline sequentially in constant currency terms. This translates into a revenue range of $2,597 million to $2,651 million.

Management attributed the subdued outlook to delays in ramping up a large client engagement and slower growth from an existing banking client. The company does not provide full-year revenue guidance.

The company's shares have been under sustained selling pressure since the start of the year amid fears of AI-led disruption, which were later compounded by geopolitical tensions and growing expectations of a US Federal Reserve rate hike this year.

Although the stock attempted a recovery on a few occasions, each rebound was met with renewed selling.

Over the last six months, the stock ended four months in the red, with June recording the steepest monthly decline of 16.5%, followed by a 15% drop in March.

So far this year, the stock has lost 32% of its value, falling to levels last seen in 2020. The sharp decline has also pushed the company's market capitalisation below ₹2 lakh crore.

The last time Wipro witnessed a comparable annual decline was in 2008 and 2022, when the stock plunged 55% and 45%, respectively.

Axis Securities expects Tech Mahindra’s revenue growth of 2.4% QoQ to ₹15,441 crore, driven by the ramp up of a large telecom deal and resilient demand from the BFSI and Manufacturing verticals. Net profit is expected to rise 13.9% QoQ to ₹1,545 crore. EBIT growth is seen at 1.7% QoQ to ₹2,120 crore, while EBIT margins are expected to remain broadly flat QoQ at 13.7%, as higher investments are likely to be offset by cost optimisation initiatives and currency tailwinds.

Kotak Institutional Equities forecasts net new deal wins of $0.9-1 billion for Tech Mahindra, lower than the preceding two quarter but a healthy growth on YoY comparison.

Key things to look for in Tech Mahindra Q1 results include FY27 and beyond outlook for sales growth and margin, impact of ongoing geopolitical and macro concerns on the company and its clients, Telecom and Enterprise segment’s demand outlook, demand commentary related to 5G technology, new business TCV wins, deal pipeline and client decision making for same. Update on capital allocation policy, any further update on growth strategy will also be monitored.

In Wipro Q1 results, investors are expected to focus on AI strategy and the measures taken to offset AI deflation on the overall business, pricing pressure in renewal deals, timelines for catch up of growth with peers, GCC growth strategy and integration plans and synergies from recent acquisitions.

Tech Mahindra is expected to report 1% QoQ growth in revenue in CC terms, led by continued ramp-up of large telecom deals, while BFSI should remain healthy, analysts said. Deal momentum is estimated to remain healthy. Hi-Tech segment may stay soft due to cautious discretionary spending, while Manufacturing is likely to remain stable despite weakness in US auto.

Wipro is expected to report 1.5% QoQ dip in IT Services revenue, weighed down by delayed ramp-ups, weakness in a large client, and softer US BFSI segment.

Recurring IT Services EBIT margins are expected to dip 30 bps QoQ given balance wage hikes, investment and large deal ramp up cost which will be partly compensated by tailwinds from currency and cost efficiencies, according to brokerage firm Equirus Securities.

Tech Mahindra share price rallied over 2% ahead of the Q1 results today. The stock opened higher at ₹1,515.10 apiece as against its previous close of ₹1,498.65 on the BSE. Tech Mahindra shares gained as much as 2.62% to ₹1,538.00 apiece.

Wipro share price traded higher ahead of the announcement of Q1 results today. The IT stock opened higher at ₹176 apiece as against its previous close of ₹174.60 on BSE. Wipro shares gained as much as 1.94% to ₹178.00 apiece.

Indian IT companies are expected to report muted June-quarter earnings amid volatile macroeconomic conditions, geopolitical tensions and rising pressure from clients to pass on AI-led productivity gains. These factors are likely to weigh on revenue growth for several companies.

IT stocks are in focus on Thursday, with two major IT companies set to announce their Q1 results today. Wipro, India’s fourth largest IT services company, and Tech Mahindra will declare their Q1 results 2026 today.