Wipro Q4 Results Preview: Profit may rise despite deal loss; buyback buzz, guidance in focus

Wipro Q4 Results Preview: Wipro Ltd will announce its March quarter (Q4FY26) and full-year results this week. The company said in an exchange filing that its Board of Directors will meet on April 15–16 to consider and approve audited standalone and consolidated financial results. The results will be finalised on April 16.

The board will also consider a proposal for a share buyback.

Q4 expectations: Margins seen improving, profit may jump

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Zee Business estimates indicate a modest sequential growth in revenue but a sharper improvement in margins and profit.

Revenue is expected at about $267.6 crores versus $263.5 crores in the previous quarter, up 1.6 per cent sequentially. In rupee terms, revenue may come in at around Rs 24,399 crore, up 3.6 per cent quarter-on-quarter.

EBIT is likely to rise 17.6 per cent to about Rs 4,105 crore, with margins expanding to 16.8 per cent from 14.8 per cent. Net profit is estimated at Rs 3,516 crore, up 11.8 per cent sequentially. The previous quarter base was impacted by labour code-related costs, aiding the comparison.

Deal momentum is expected to remain steady, with total contract value (TCV) seen at around $3.5 billion. Large deal wins may range between $850 million and $1 billion.

Key drivers: BFSI strength, but deal loss and pricing pressure weigh

The banking, financial services and insurance (BFSI) segment is expected to support growth. This remains the company’s largest vertical and is likely to show steady momentum.

However, the loss of a large deal from Estée Lauder and ongoing pricing pressure may cap overall growth.

The acquisition of Harman International is expected to support revenue. But its consolidation may also lead to higher depreciation and amortisation costs, which could partly offset margin gains.

A wage revision effective March 1 may have a one-month impact on margins. However, analysts expect this to be largely offset by rupee depreciation benefits.

Guidance outlook: Weak start to FY27 likely

Wipro is expected to guide for a weak start to FY27. Street estimates suggest Q1FY27 constant currency revenue growth guidance in the range of -2 per cent to 0 per cent quarter-on-quarter.

This reflects continued macro uncertainty and cautious client spending, especially in Europe.

What to watch in management commentary

Investors will track four key areas closely:

• Buyback announcement and capital allocation strategy
• Outlook on European business demand
• Commentary on artificial intelligence (AI) deals and pipeline
• Revenue growth guidance for Q1FY27

Q3 snapshot: Revenue up, profit impacted by one-off cost

In Q3FY26, Wipro reported revenue of Rs 23,555 crore, slightly above estimates. This marked a 5.5 per cent year-on-year increase and a 4 per cent sequential rise.

IT services revenue came in at Rs 23,378 crore. In constant currency terms, it grew 1.4 per cent quarter-on-quarter but declined 1.2 per cent year-on-year.

Net profit stood at Rs 3,119 crore, down 7.1 per cent year-on-year, impacted by a one-time Rs 300 crore charge linked to new labour codes. Adjusted profit came in at Rs 3,360 crore, showing modest growth.

The company also declared an interim dividend of Rs 6 per share.