Wipro Q2 Profit Slips 1.4% as Large-Deal Bookings Drop 58%; Q3 Guide Points to Flat Revenue

Wipro's September-quarter numbers, released after market hours on Thursday, showed a company that is holding its margins but struggling to refill its order book. Consolidated net profit came in at ₹3,200.6 crore for the second quarter of FY27, down 1.4% from ₹3,246.2 crore a year earlier and about 4.5% lower than the ₹3,352 crore it earned in the June quarter.

Reported revenue rose 9.1% year-on-year to about ₹24,750 crore, and 1.1% over the previous quarter. Much of that rupee growth reflects currency rather than volume: in constant currency, revenue from the core IT services business was flat sequentially and up just 0.6% from a year ago.

Bookings are the number to watch

The figure most likely to shape how investors react on Friday is not profit but bookings. Total bookings stood at $2,595 million, down 22.9% from the June quarter in constant currency. Large deals, which typically lock in revenue for several years, fell much harder, to $674 million, a 58.6% drop quarter-on-quarter.

Large-deal wins tend to be lumpy, so one soft quarter does not by itself signal a trend. But for a company whose revenue is barely growing in constant-currency terms, a thinner pipeline makes it harder to argue that growth will pick up in the next two to three quarters.

Margins and cash held up

On profitability, the picture was steadier. The IT services operating margin was 16.5%, an improvement of 0.5 percentage points from the June quarter, though 0.2 points below the same period last year.

Cash generation was strong. Operating cash flow rose 61.3% sequentially to about ₹5,300 crore, equal to roughly 166% of net income for the quarter. Earnings per share were ₹3.23, up 4.2% from a year ago, helped by a lower share count. Voluntary attrition on a trailing twelve-month basis stood at 13.8%.

A cautious outlook for the December quarter

Wipro expects IT services revenue of $2,571 million to $2,625 million for the October-December quarter. In constant currency, that translates to anything from a 1.5% decline to a 0.5% increase over the September quarter. The December quarter usually carries fewer working days and client furloughs, which is part of why the range dips below zero at the lower end.

Chief Executive Srini Pallia said the company's investments were beginning to deliver results, pointing to new client wins and momentum in its AI-focused unit and offerings, which he described as a long-term growth driver for the business.

How it fits the sector picture

The results arrive in the middle of a strong week for Indian IT stocks, which have rallied on a rotation into large-cap technology names. Wipro's shares rose 1.58% to close at ₹173.70 on Thursday before the numbers came out. Tech Mahindra, which reported on the same evening, posted sharply higher profit and deal wins, which will make the contrast between the two companies' order books a talking point when trading resumes.

For investors, the key question from this quarter is whether the drop in large-deal bookings is a timing issue or an early sign of weaker demand. Management commentary on the deal pipeline over the coming weeks will matter more than the headline profit figure.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.