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Wipro posted another quarter of weak revenue performance in Q4, due to delayed ramp?ups in select large deals and continued softness in specific BFSI accounts. IT Services revenue grew 0.6% QoQ to USD2.6bn (0.2% CC), below our expectations. IT Services EBITM declined by 30bps sequentially to 17.3%. Deal intake stood at ~USD3.5bn in Q4 (including 14 large-deal bookings worth ~USD1.4bn in total), with book-to-bill of 1.3x. The management gave guidance for -2% to flat QoQ CC revenue growth in Q1, slightly below our estimate. The midpoint of guidance assumes contribution from the OLAM Group and customer contracts of Alpha Net Group transactions for around half of Q1FY26. EBITM in Q1 is likely to face headwinds from 2 incremental months of salary hike (Mar-26 rollout), lower margin owing to competitively won large deals in the initial phase, integration of low-margin M&As, and investments in Wipro Intelligence. Even so, Wipro aspires to maintain margins in a narrow band over the medium term through operational efficiencies, cost takeout, and AI-driven productivity. We largely retain our estimates after factoring in the Q4 performance, M&As, and buyback; retain REDUCE and TP of Rs210 at 15x Mar-28E EPS.

Results summary

Wipro’s IT Services revenue grew 0.6% QoQ (0.2% CC) to USD2.6bn. IT Services EBITM declined by 30bps QoQ to 17.3% due to 2 incremental months of integration of Harman DTS and wage hike (effective Mar-26) partly offset by rupee depreciation gain. Overall EBITM expanded by 90bps QoQ to 17.3%, driven by absence of one-offs (labor code and restructuring costs). Total headcount was largely flat QoQ at 242,156. Attrition (TTM) fell by 40bps QoQ to 13.8%. Wipro has announced a buyback of up to 600mn shares at Rs250 per share, amounting to Rs150bn. What we like: EBITM beat, healthy deal intake. What we do not like: Revenue miss, softness in BFSI and Healthcare.

BFSI and Healthcare constrain growth

Revenue growth was led by Technology and Communications (5.3% QoQ CC), Consumer (1.7%), and EMR (1.1%), while Financial Services and Healthcare declined 1.3% and 4.4% QoQ, respectively. BFSI was impacted by delayed ramp-ups and client-specific headwinds; Healthcare was affected by seasonality and policy changes, dragging the overall growth.

APMEA emerges strongest, while Americas 2 remains under pressure

Among strategic market units, APMEA, Europe, and Americas 1 grew sequentially by 3.1%, 2.0%, and 0.3% CC QoQ, respectively, while Americas 2 fell 2.6%. Americas 1 growth was led by the Consumer as well as the Technology and Communications sectors.  Americas 2 declined, owing to BFSI?specific issues, including one large client?related challenge and delayed ramp?up in a previously won large deal. APMEA growth was largely driven by Southeast Asia. Europe’s growth was supported by the UK BFSI market and strong deal momentum in Germany.

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