Wipro Reports Revenue Growth Amid Plunging Deal Bookings

Wipro reported second-quarter FY27 revenue of 24,752.7 crore rupees ($2.60 billion), a 9.1 per cent year-on-year increase that slightly exceeded analyst expectations. Despite the revenue growth, consolidated net profit fell to approximately 3,200 crore rupees, a decline of 1.4 to 1.9 per cent year-on-year. This dip resulted from higher wage and subcontracting costs and a 68 per cent sequential drop in other income following a 15,050.8 crore rupee share buyback in June 2026.

Total contract value (TCV) bookings plunged 23 per cent sequentially to $2.6 billion, marking a near four-year low. Large deal bookings specifically fell 58.6 per cent to $674 million. CEO Srinivas Pallia attributed the decline to timing, noting that some deals were awarded but not yet signed, and expressed confidence in third-quarter bookings.

Operating margins improved by 50 basis points to 16.5 per cent, driven by efficiency gains, favorable rupee movement, and a lack of salary increments. The company aims for a medium-term operating margin target of 17-17.5 per cent. However, Wipro's recovery continues to lag behind peers Tata Consultancy Services and HCL Technologies, both of which reported sequential revenue growth.

To counter industry disruption, Wipro is pivoting toward an AI-powered strategy through partnerships with Google and Anthropic. For the third quarter, the company forecasts IT services revenue between $2.57 billion and $2.63 billion, though it noted that seasonal furloughs will impact performance.