The company reported consolidated revenue of ₹24,479 crore for the first quarter, marking a 10.6% year-over-year increase. However, the figure came in below market estimates. Net profit rose marginally by 0.6% year-over-year to ₹3,352 crore, reflecting continued pressure on profitability despite higher revenue.
Wipro's core IT services business generated revenue of $2.615 billion during the quarter, representing a 0.9% increase compared with the same period last year. On a sequential basis, however, IT services revenue declined, highlighting the challenging demand environment facing the technology sector.
Operating margins dropped to 16%, the lowest level in 15 quarters. The decline was primarily driven by salary hikes, the execution of low-margin contracts, and continued investments in artificial intelligence capabilities, all of which weighed on the company's profitability.
Chief Executive Officer Srini Pallia acknowledged that the business environment remains soft as clients continue to focus on cost reductions and spending discipline. Despite these challenges, he emphasized that the company secured 13 large deals with a combined value of .626 billion, providing optimism for future business growth.
Looking ahead, Wipro issued guidance indicating that revenue in the next quarter is expected to remain flat or record only slight growth. The company also stated that it intends to rebuild operating margins gradually while navigating the current market conditions and maintaining investments in strategic growth areas.
The quarterly results underscore the continued challenges facing the global information technology services industry, where cautious client spending, margin pressure, and investment in emerging technologies are shaping financial performance. While Wipro's strong deal wins offer a positive long-term signal, subdued near-term growth expectations and weaker margins have raised investor concerns, leading to a decline in the company's share price.
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