IT services company Wipro will announce its Q1 FY26 earnings on Thursday, July 17. The company is expected to post soft revenue growth due to continued demand weakness in key markets like Europe and challenges in client budgets.
According to the Zee Business Research Team, Wipro’s revenues are likely to decline 2.9 per cent quarter-on-quarter to Rs 21,858 crore from Rs 22,504 crore in the previous quarter. On a constant currency basis, revenue is expected to fall about 2.5 per cent, which remains within the company’s earlier guidance of a 3.5 per cent to 1.5 per cent decline. This performance reflects the ongoing headwinds faced by IT service providers amid cautious spending by clients, especially in sectors like BFSI (Banking, Financial Services, and Insurance) and retail.
Earnings before interest and tax (EBIT) are forecasted to drop 4.5 per cent to Rs 3,732 crore, with margins contracting 30 basis points to 17.1 per cent. The margin pressure is primarily attributed to higher provisions related to client-specific issues, including doubtful debts. Despite these challenges, Wipro’s efforts on cost management and operational efficiency are expected to provide some cushion against further margin erosion.
Profit after tax (PAT) is anticipated to decline 13.8 per cent to Rs 3,076 crore compared to the previous quarter.
Looking ahead, Wipro may guide revenue growth between -2 per cent and flat in constant currency terms for Q2FY26. Investors and analysts will keenly observe the management’s commentary on the consulting business, particularly in the BFSI vertical, updates on client-specific challenges, and the health of the large deal pipeline. The outlook on discretionary client spending will also be a key focus area as it signals potential recovery or further slowdown in demand.
Additionally, the company’s guidance on FY27 revenue growth and margin trajectory will be closely monitored to gauge its long-term growth prospects.
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