Wipro Q2 FY27 Results: Margin Improvement, but....

Wipro’s Q2 performance presents a mixed picture. Operating margins improved, and cash generation remained strong, but muted IT services growth, declining net income, and a sharp sequential fall in deal bookings highlight ongoing growth challenges. Key Financial Highlights Revenue: ₹24,750 crore, up 1.1% QoQ and 9.1% YoY. IT Services Growth: Flat QoQ and up 0.6% YoY in constant currency, indicating limited underlying growth momentum. Operating Margin: Improved 50 basis points QoQ to 16.5%, supporting profitability. Net Income: ₹3,200 crore, down 4.7% QoQ and 1.9% YoY. Operating Cash Flow: ₹5,300 crore, equivalent to 165.8% of net income, reflecting strong cash conversion. Deal Bookings: The Key Concern Total Bookings: $2.595 billion, down 22.9% QoQ in constant currency. Large Deal Bookings: $674 million, declining 58.6% QoQ in constant currency. Wipro secured strategic engagements across banking, industrial transformation, and AI infrastructure. However, the sharp decline in large deal bookings raises questions about near-term revenue visibility and the sustainability of future growth. Q3 FY27 Outlook Management expects IT Services revenue between $2.571 billion and $2.625 billion, implying sequential constant-currency growth of -1.5% to +0.5%. The guidance points to continued near-term growth pressure, with a meaningful recovery yet to become visible. Investor Takeaway Wipro’s margin expansion and strong cash generation are positives, but weak deal bookings, subdued organic growth, and declining net income temper the overall outlook. Our View: Neutral stance. Investors should monitor large deal conversion, revenue growth, and margin sustainability before drawing stronger conclusions about a potential recovery. What matters next is whether Wipro can convert its strategic wins into consistent revenue growth. Disclaimer: This content is for educational and informational purposes only