Wipro Q1 results preview: Revenue, profit may see a sequential decline; guidance, deal wins to be in focus
Wipro Q1 results preview: Wipro’s Q1 results are likely to reflect subdued revenue and profit growth sequentially, as demand weakness persists. Nonetheless, margins could see some relief from effective cost controls and currency tailwinds.
Wipro is set to announce its June quarter (Q1) earnings on Thursday, July 17.
Experts expect the IT player’s key numbers to be weaker sequentially. The Street will focus on management commentary on the demand scenario, particularly in Europe, Q2FY26 guidance, deal wins, and margin outlook.
Wipro Q1: What top brokerages expect
According to Motilal Oswal Financial Services’ estimates, Wipro may report a 2.5 per cent constant currency (CC) decline in revenue in the IT service business as deterioration in client spending was observed as of Q4-end.
In INR, Wipro’s revenue may decline 2 per cent QoQ (quarter-on-quarter) and may remain flat YoY. Profit after tax (PAT) may fall 10 per cent QoQ but rise 7 per cent YoY, said Motilal Oswal.
Motilal expects Wipro’s margins to stay in a tight range of nearly 17.5 per cent. This could be due to the challenging revenue environment and pricing constraints in vendor consolidation engagements.
The brokerage firm further said that ongoing client-specific challenges and project ramp-downs may keep Europe under pressure. However, new leadership execution and a major deal ramp-up in the second half may offer some respite.
“Any change in client stance on transformation projects should be monitored, as the company indicated that some projects are being paused or timelines are being realigned,” Motilal said.
Brokerage firm Phillip Capital expects Wipro’s IT services CC revenue to decline by 2.7 per cent QoQ, while margins may moderate slightly due to a weak topline and largely optimised levers.
The brokerage firm expects Wipro to report an 11.3 per cent QoQ decline in profit but a 5.4 per cent YoY rise.
“We expect Wipro to guide for 0.5 per cent to 1.5 per cent QoQ CC growth for Q2FY26. Watch out for Q2FY26 guidance, consulting outlook, deal win to revenue conversion comments, vertical outlook, and margins outlook,” said Phillip Capital.
Kotak Institutional Equities also forecasts revenue decline of 2.7 per cent. Adjusted PAT may rise 10.2 per cent YoY, but fall 7.3 per cent QoQ, Kotak said.
Kotak believes weak demand, combined with company-specific factors in Europe, will contribute to the weak quarter.
“We forecast a stable EBIT margin despite weak growth. Aggressive cost management combined with currency tailwinds will aid margins. We expect large deal TCV to be in $1.2-1.3 billion range, a strong outcome, noting the recent aggression on large deal pursuits,” said Kotak.
“Revenue growth guidance for the September 2025 quarter will likely range from (-)1 to 1 per cent. We expect investor focus on—(1) reasons for weak Europe revenues, (2) positioning in vendor consolidation deals, where Wipro has mixed track record, (3) large deal pipeline and win rates, (4) turnaround progress, i.e. catching up with peers on growth, (5) GCC growth strategy, and (6) catch-up timeframe on growth with peers,” said Kotak.
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