Wipro reported a modest increase in its consolidated net profit for the first quarter of FY27, with rising revenue offset by a sharper jump in operating expenses. The IT services major also announced an interim dividend, completed a large share buyback during the quarter, and expanded its portfolio through strategic acquisitions. The company posted a consolidated net profit of Rs 3,356.3 crore for the quarter ended June 30, 2026, marking a 0.6 per cent year-on-year increase from Rs 3,336.5 crore reported in the corresponding quarter last year.
Revenue from operations registered stronger growth, climbing 10.6 per cent to Rs 24,478.6 crore, compared with Rs 22,134.6 crore a year ago. Total income also advanced 9.7 per cent year-on-year to Rs 25,457.6 crore.
On a sequential basis, however, profit slipped 4.7 per cent from Rs 3,521.6 crore in the while revenue edged up 1 per cent from Rs 24,236.3 crore.
Expenses Outpace Revenue Growth
Although Wipro delivered healthy top-line growth, expenses expanded at a faster pace, limiting the improvement in profitability.
Total expenditure during the quarter rose 11.5 per cent year-on-year to Rs 21,122.6 crore, up from Rs 18,947.8 crore.
Employee benefit costs, the company’s biggest expense category, increased 9.9 per cent to Rs 14,753.1 crore. Meanwhile, subcontracting and technical fees grew 12.5 per cent to Rs 2,878.7 crore.
The company also recorded a 31 per cent rise in finance costs, which reached Rs 472.8 crore. Depreciation, amortisation and impairment expenses climbed 17.3 per cent to Rs 804.4 crore.
Despite the higher cost base, profit before tax improved 1.8 per cent year-on-year to Rs 4,334.5 crore, compared with Rs 4,258.3 crore in the same period last year.
Basic and diluted earnings per share came in at Rs 3.20 each, slightly higher than Rs 3.18 and Rs 3.17, respectively, in the year-ago quarter.
IT Services Business Drives Top-Line Growth
Wipro’s core IT services business continued to be the primary growth engine during the quarter.
Revenue from the IT services segment increased 10.7 per cent year-on-year to Rs 24,452.9 crore, while the segment’s operating result rose 2.8 per cent to Rs 3,918.7 crore.
Among geographies, the Americas 1 business recorded 8.9 per cent revenue growth to Rs 8,608.7 crore, with segment earnings rising 2.3 per cent to Rs 1,669.1 crore.
The Americas 2 business delivered a modest 1.6 per cent increase in revenue to Rs 6,211.9 crore, though its segment result declined 18.1 per cent to Rs 987.4 crore.
Europe emerged as a strong performer, with revenue jumping 17.2 per cent to Rs 6,656.9 crore, while segment profit surged 50.1 per cent to Rs 904.7 crore.
The Asia Pacific, Middle East and Africa (APMEA) region also posted robust growth, with revenue rising 24.9 per cent to Rs 2,975.4 crore and segment earnings increasing 46.4 per cent to Rs 436.2 crore.
Wipro said it had realigned customers in Latin America and Canada across its Americas units from April 1, 2026, adding that prior-period figures were revised to ensure comparability following the restructuring.
Share Buyback Completed, Dividend Announced
The company concluded its Rs 15,050 crore share buyback during the quarter by repurchasing 600 million equity shares at Rs 250 per share. The buyback led to a total cash outflow of Rs 15,049.7 crore, including Rs 49.7 crore towards transaction-related costs.
The repurchased shares were extinguished on June 25, resulting in a Rs 120 crore reduction in Wipro’s paid-up equity share capital.
In addition, Wipro completed the acquisition of 100 per cent of Mindsprint Pte Ltd and its subsidiaries with effect from May 15, 2026. It also raised its holding in Aggne Global IT Services Private Limited and Aggne Global Inc to 80 per cent during June.
The company’s board declared an interim dividend of Rs 2 per equity share. July 27 has been fixed as the record date, while dividend payments will be completed on or before August 14.