Profitability: Margins Under Pressure
Quarterly EBIT is estimated at ₹4,158 crore, slightly up from ₹4,115 crore seen in Q3. EBIT margins, however, are likely to narrow by 50 basis points from 17.6% to 17.1%.
Margins on recurring IT services EBIT are likely to fall. This will be due to rising wage costs from March 1, 2026, costs from acquisitions, and those from ramping up on big-ticket deals.
Although a weaker currency is likely to provide a boost of 50–60 basis points, this is expected to be negated by higher operating costs and the impact of consolidating lower-margin acquisitions such as Harman DTS.
Source: CNBC
Profit After Tax Outlook
The profit after tax is estimated to be between ₹3,569–3,791 crore, which is higher by 17.6-21.6% on a quarter-on-quarter basis and by 2.7-6.2% from last year in the same quarter. Though there is a sequential rise, margins are likely to remain tight for this company.
Source: CNBC
Deal Wins and Strategic Moves
Wipro continues to exhibit strong performance in large contracts. Wipro received a contract valued at $1 billion with an eight-year tenure from the Olam Group.
In this deal, Wipro will acquire a 100% stake in Mindsprint Pte. Ltd at $375 million. The total value of the deal should remain steady with previous quarters, although the scale-up of megadeals would be slow.
Segment Trends and Demand Outlook
The BFSI and healthcare verticals are likely to be stable, but the consumer and EMR verticals will likely continue to face challenges because of tariff uncertainty and prolonged customer decision-making processes.
While there have been strong deal closures, longer ramp-up times, and conservative customer spending are affecting the company’s short-term visibility.
AI Strategy Driving Growth Outlook
Wipro Ltd is positioning itself for an “AI-first world,” making AI a board-level priority for clients and a core driver of its deal pipeline. The company is witnessing a shift toward AI-led transformation deals, supported by its Wipro Intelligence Framework spanning industry platforms, delivery platforms like WINGS and WeGA, and a global innovation network. The Harman DTS acquisition further strengthens AI capabilities, though it may dilute margins. AI is also embedded in large deal executions, with Q4 IT services revenue growth guided at 0–2% QoQ in constant currency.
Share Buyback: Key Trigger
An important item on the agenda for the investors would be the deliberations that the board will have about the proposed stock repurchase, scheduled for April 16. The amount for this repurchase is projected to fall within the range of ₹16,000-18,000 crores.
Wipro Share Buyback History (2016–2023)
Year
| Buyback Size (₹ crore)
| Buyback Price (₹)
| Record Date / Completion
| Promoter Holding Change
|
2016
| 2,500
| 625
| May 2016 (Completion)
| 73.39% → 74.01%
|
2017
| 11,000
| 320
| Sep 15, 2017
| 74.32% → 73.23%
|
2019
| 10,500
| 325
| Jun 21, 2019
| 74.05% → 73.85%
|
2020
| 9,500
| 400
| Dec 11, 2020
| 73.85% → 73.02%
|
2023
| 12,000
| 445
| Jun 16, 2023
| 72.92% → 72.16%
|
Source: Finology
Wipro’s Guidance for Q1 FY27
However, the most significant guidance is expected from Wipro for its Q1 FY27. In general, guidance is expected to suggest a weak beginning for FY27, with IT services revenues expected to be in the range of -1.5% to +0.5%.
Leadership and Execution Strategy
Wipro is displaying better momentum in closing large deals and executing strategies under the leadership of its CEO, Srini Palia. The turnaround strategy adopted by Wipro includes speeding up large deals, improving client relationship management, creating consulting capability in AI solutions, readying people for AI, and making itself simpler.
Despite all this, the problem of sustained revenue and market share growth seems difficult to achieve.
Valuations of Wipro
The valuation of Wipro continues to be compelling based on its lower trailing P/E of 16 versus an industry average of 22.6. Other companies in its industry include Infosys, which has a PE multiple of 17.94, and TCS, which operates at PE multiple of 17.01.
Even still, investors continue to maintain a cautious outlook on the company, which currently trades at ₹203.06 after declining by 0.89% in Monday's trade.
Conclusion: Growth vs Execution Challenge
Wipro Ltd is expected to deliver a mixed Q4 FY26 performance, where strong deal wins and acquisition-led growth provide support, but execution challenges and weak underlying demand continue to weigh on overall performance. While the company is building a solid pipeline, translating these wins into consistent revenue growth remains a key hurdle.
Looking ahead, the Q1 FY27 guidance and the outcome of the proposed share buyback will be crucial triggers. These factors will shape investor sentiment and determine the near-term direction of Wipro’s stock, as markets seek clearer signs of sustainable growth and margin stability.
