Wipro Q1 FY27 Results Analysis: Margin Misses Guidance, PAT Growth Stalls at 0.65%

CompoundingAI Research Updated July 16, 2026 2 min read

Negative

Wipro Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 24,478.60 Cr (+10.59% YoY) and PAT growth of +0.59% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	July 16, 2026
Quarter	Q1 FY 2026-2027
Revenue (Q1)	Rs. 24,478.60 Cr (+10.59% YoY)
PAT (Q1)	Rs. 3,356.30 Cr (+0.59% YoY)
EBITDA margin	18.93% (-22 bps YoY)
EPS (Q1)	Rs. 3.20 (+0.63% YoY)
Market cap	Rs. 176,082.04 Cr
CMP	Rs. 177.74

Key Investment Insights

Key Positives

IT Services revenue grew 10.75% YoY to Rs.24,452.9 Cr, led by APMEA (24.93% YoY) and Europe (17.16% YoY).
Subsidiary contribution turned positive from -Rs.365.7 Cr to +Rs.486.3 Cr, driven by Mindsprint and Aggne acquisitions.
No restructuring charges in Q1FY27, confirming management's commitment that the prior restructuring was the last.
Mindsprint and Aggne acquisitions contributed ~1.5 months of revenue and are expected to provide full-quarter benefit in Q2.

Risk Factors

IT Services Operating Margin fell to 16.03%, 97 bps below the 17% floor of the guided 17–17.5% band.
Total expenses grew 11.48% YoY, outpacing revenue growth of 10.59%, compressing margins.
PAT to owners grew only 0.65% YoY despite 10.6% revenue growth, highlighting margin pressure.
Americas 2 (BFSI-heavy) margin collapsed 383 bps YoY to 15.90%, indicating pricing pressure or deal ramp-up costs.
Finance costs jumped 31.04% YoY to Rs.472.8 Cr due to debt taken for the Mindsprint acquisition.