By Dalal Street Investment Journal (DSIJ)
Wipro Ltd posted a steady Q4 FY26 performance with revenue rising 2.9% QoQ and strong growth in large deal bookings. Operating margins saw a slight decline, while net profit improved sequentially. For FY26, growth remained muted amid weak demand. The company expects IT services revenue to be in the range of $2,597 million to $2,651 million. This implies sequential growth guidance of (-)2.0% to 0% in constant currency terms. The company guided flat near-term growth and announced a ₹150 billion buyback alongside its final dividend declaration.
Wipro’s gross revenue for the quarter stood at ₹242.4 billion ($2,583 million), which is an increase of 2.9% QoQ and 7.7% YoY. The IT services segment revenue stood at $2,651 million, rising 0.6% QoQ and 2.1% YoY. In constant currency terms, it also remained largely flat, increasing mere 0.2% QoQ and declining 0.2% YoY. Net income for the quarter was at ₹35 billion ($373.2 million), an increase of 12.3% QoQ and decrease of 1.9% YoY.
In constant currency terms, total bookings for the fourth quarter were $3,455 million, a 3.2% increase from the previous quarter. Large deal bookings rose 65.1% from the previous quarter to $1,440 million.
The operating margin for IT services in Q4 FY26 was 17.3%, which was 0.3% lower than the previous quarter and 0.2% lower than the previous year.
The company's net income for the quarter was ₹35.0 billion ($373.2 million). This was a 12.3% increase from the previous quarter but a 1.9% decrease from the same quarter last year. Earnings per share (EPS) were ₹3.34, which is a 12.1% increase from the previous quarter and a 2.1% decrease from the previous year.
Adjusted for labour code changes, net income stood at ₹34.9 billion ($371.5 million), up 3.7% QoQ, while adjusted EPS was ₹3.33, also rising 3.7% sequentially.
Cash flow generation weakened during the quarter, with operating cash flows at ₹31.7 billion ($338.2 million), down 15.3% YoY, representing 90.1% of net income. On the other hand, voluntary attrition was 13.8% over the past 12 months.
The company said that its gross revenue for the whole year was ₹926.2 billion ($9.9 billion), which was a 4.0% increase from the previous year. IT services revenue for the year stood at $10,478.1 million, declining 0.3% YoY. In constant currency terms, the segment showed a decline of 1.6% YoY. This was because demand was still weak in important markets.
Even so, deal wins stayed positive. Bookings for large deals was at $7.8 billion, up by 45.4% YoY, and total bookings went up 14% from the previous year to $16.4 billion.
Net income for FY26 stood at ₹132.0 billion ($1,406.5 million), registering a marginal increase of 0.5% YoY. EPS for the year was ₹12.6, up 0.3% YoY.
Adjusted for labour code changes, net income rose 2.2% YoY to ₹134.3 billion ($1,430.8 million), while adjusted EPS increased 2.1% YoY to ₹12.8.
Operating cash flows for the year were ₹149.3 billion ($1,591.3 million), down 11.9% YoY, though still strong at 112.6% of net income.
For the quarter ending June 30, 2026, the company expects IT services revenue to be in the range of $2,597 million to $2,651 million. This implies sequential growth guidance of (-)2.0% to 0% in constant currency terms.
Buyback Announcement Worth Up to ₹150 billion
The Board has approved a share buyback proposal worth up to ₹150 billion ($1.6 billion), subject to shareholder approval. The company plans to repurchase up to 60,00,00,000 equity shares (5.7% of total paid-up capital) at ₹250 per share through a tender offer route.
The interim dividend of ₹11 declared during FY26 will be treated as the final dividend for the financial year.
SEBI Registered Research Analyst (INH000006396).
Founded in 1986, Dalal Street Investment Journal (DSIJ) brings decades of experience in India’s equity markets. DSIJ's research combines fundamental analysis with price action, guided by disciplined risk management and capital preservation. They follow a structured, data-driven approach designed to help investors and traders make informed decisions beyond short-term market noise.
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