Wipro's Profitability Squeeze Masks Steady Revenue Growth
Wipro's Q1 revenue grew 10.6% year-on-year, but profit was nearly flat and margins contracted, highlighting a profitability challenge.
Wipro reported a 10.6% YoY revenue increase for Q1 FY27, yet profit grew just 0.6%. The net profit margin fell to 13.7%, down 140 basis points from the same quarter last year.
Wipro's first-quarter results for FY27 present a story of resilient top-line growth overshadowed by a clear squeeze on profitability. While revenue continued its steady climb, profit growth stalled and net margins contracted significantly compared to last year.
The company's revenue for the quarter ended June 2026 reached ₹24,478.6 crore, marking a solid 10.6% increase year-on-year and a 1.0% sequential rise. However, profit after tax (PAT) of ₹3,356.3 crore was nearly flat, growing just 0.6% from Q1 FY26 and declining 4.7% from the previous quarter. This divergence pulled the net profit margin down to 13.7%, a 140-basis-point drop from the 15.1% margin recorded in the same period last year.
A look at the last five quarters shows the trajectory of this margin pressure.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 24,478.6YoY +11% | 24,236.3 | 22,134.6 |
| Profit (₹ Cr) | 3,356.3YoY +0.6% | 3,521.6 | 3,336.5 |
| Net Profit Margin (%) | 13.7YoY -9.3% | 14.5 | 15.1 |
Despite the quarterly profit dip, the trailing twelve-month (TTM) profit stands at ₹13,285.3 crore on revenue of ₹94,968 crore, yielding a TTM net profit margin of 14.0%.
Key Points
- The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.19.
- Return on Equity (ROE) for the period was a healthy 15.71%.
- The stock trades at a P/E of 14.9, a discount of over 23% to the industry average P/E of 19.5.
Wipro's challenge is clear: translating its consistent revenue momentum into stronger bottom-line growth. The coming quarters will reveal if this margin compression is a temporary phase or a persistent trend requiring strategic adjustment.
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· WIPRO
(BSE)
ISIN: INE075A01022
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