Wipro (WIT): Profit slips but profit per share rises 4.2% as new orders fall
Wipro, the Indian technology services company, reported sales of ₹247.5bn for the three months to 30 September 2026, up 9.1% on a year earlier. Profit slipped 1.4% to ₹32.0bn, but profit per share rose 4.2% to ₹3.23 because fewer shares are outstanding. Sales in dollars were almost flat, and new orders signed in the quarter fell 22.9% from the previous quarter.
What happened
On Thursday 15 October 2026, Wipro published its results for the second quarter of its 2027 financial year, covering July to September 2026. The company, which is listed in Mumbai and on the New York Stock Exchange, builds and runs software and technology systems for large clients such as banks, insurers and manufacturers. The figures are reported under IFRS, the international accounting rules. Chief executive Srini Pallia said the company's investments "are beginning to deliver results" and called artificial intelligence "a long-term growth driver". Chief financial officer Aparna Iyer highlighted a 16.5% operating margin and strong cash generation. Wipro also gave a forecast for the next quarter: technology services sales of $2,571m to $2,625m, which means a change of between a 1.5% fall and a 0.5% rise from this quarter once currency effects are removed.
The numbers, explained
Start with sales. Total revenue was ₹247,527m, against ₹226,973m a year earlier. Our working: 247,527 minus 226,973 is 20,554, and 20,554 divided by 226,973 is 9.1%. Against the previous quarter (₹244,786m, which we derived by subtracting the first-quarter figure from the six-month total of ₹492,313m) it is up 1.1%. The headline looks strong, but Wipro earns most of its money in dollars, euros and pounds and reports in rupees. A weaker rupee therefore inflates the rupee figure. The core technology services business made $2,611.5m, up only 0.3% on a year ago and down 0.1% on the quarter. In "constant currency", which strips out exchange-rate moves, it was flat on the quarter and up 0.6% on the year. That is the better guide to underlying demand.
Now profit. Profit for the period was ₹31,997m against ₹32,624m a year ago, a fall of 1.9% (the release's figure). The part belonging to Wipro's shareholders, ₹32,006m, is down 1.4% from ₹32,462m, and down 4.5% from the first quarter's ₹33,520m (our working from the six-month total of ₹65,526m). Yet earnings per share, profit divided by the number of shares, rose from ₹3.10 to ₹3.23 (basic), up 4.2%. The reason is the share count: the average number of shares fell from 10,475.7m to 9,898.1m, which is 5.5% fewer. The release does not say why; the balance sheet shows share capital down from ₹20,977m in March to ₹19,810m, which fits with shares having been cancelled, though we have not confirmed the cause. Margins: the technology services operating margin, profit as a share of segment sales, was 16.5% (₹40,726m divided by ₹246,670m), up from 16.0% last quarter and 16.7% a year ago.
Two further figures matter. Total bookings, the value of contracts signed in the quarter, were $2,595m, down 22.9% from the previous quarter in constant currency. Large deals, those worth $30m or more, were $674m, down 58.6%, and made up 26% of the total (674 divided by 2,595). Bookings are lumpy because a few big contracts can swing a single quarter, so one quarter is not a trend. Cash was strong: operating cash flow was ₹53.0bn, 165.8% of profit (53,048 divided by 31,997). After spending ₹4.3bn on equipment, free cash flow, the cash left over, was ₹48.9bn, or 152.8% of profit.
Why it matters
Wipro makes money by charging clients for teams of engineers and consultants who build, run and modernise their technology. Revenue grows when clients sign new projects or expand existing ones, and profit depends on how much it costs to staff them. For customers, the company is pitching AI-based tools that automate work such as lending, procurement and software testing; the release lists a dozen deal wins in banking, health insurance, energy and life sciences. Its rivals include Tata Consultancy Services, Infosys and HCLTech, which sell similar services; Wipro's near-flat dollar sales are one company's result, and we make no claim here about the whole sector.
The picture is mixed rather than weak. Margins and cash generation improved, and per-share profit rose. But sales growth in dollars is close to zero, new large-deal wins fell sharply, and the company's own forecast for the next quarter spans a small decline to a small rise. These are reported facts and the company's own forecast; any view on what they mean for the shares is outside this note. One outlet, Goodreturns, reported that Wipro's US-listed shares dropped nearly 3% before the market opened in New York and recovered part of that, while the Mumbai shares rose 1.6% on results day.
What to watch next
Wipro's forecast covers the quarter ending 31 December 2026: technology services revenue of $2,571m to $2,625m, based on stated exchange rates including ₹95.76 to the dollar. The results for that quarter will show whether sales land inside that range; the date was not given in the release or the sources we read. Wipro files its detailed annual report with the US Securities and Exchange Commission on Form 20-F, and the company's own interim statements for the quarter are on its investor website. We make no prediction about any of these.
- Constant currency: sales restated at fixed exchange rates, so currency moves do not hide real growth.
- Bookings: the total value of contracts signed in a period; revenue from them arrives over several years.
- Operating margin: operating profit as a share of sales.
- Free cash flow: cash from operations minus spending on equipment and buildings.
Sources
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