Wipro Q2 Results: PAT Drops 4.5% QoQ, Revenue Up 9% YoY; Wipro ADR Crashes 3% On Q3 Guidance

Azim Premji-backed Wipro has declared its Q2 results for FY27, missing street estimates broadly in terms of profitability, guidance, and revenue. In Q2FY27, Wipro reported a 1.4% YoY and 4.5% QoQ decline in consolidated net profit to Rs 3,200.6 crore. After the Q2 earnings, Wipro's American depository receipts (ADR) following Q3 revenue guidance.

Meanwhile, Wipro's revenue surged over 9% YoY and 1.1% QoQ to Rs 24,752.7 crore in the quarter.

The company posted a consolidated net profit of Rs 3,352 crore in Q1FY27 and Rs 3,246.2 crore in Q2FY26. Also, Wipro's revenue stood at Rs 22,697.3 crore in Q2FY27 and Rs 24,478.6 crore in Q1FY27.

In dollar terms, Wipro reported IT services segment revenue of $2611.5 million, a decrease of 0.1% QoQ but an increase of 0.3% YoY. Additionally, non-GAAP constant currency IT Services segment revenue was flat sequentially and increased by 0.6% YoY.

Furthermore, Wipro bagged total bookings of $$2,595 million, down 22.9% QoQ in constant currency. Of the total, the large deals stood at $674 million, a decrease of 58.6% QoQ in constant currency.

Srini Pallia, CEO and Managing Director, said, "The strategic investments we have been making are beginning to deliver results. They are enhancing our ability to win in new markets, add new clients, and grow existing relationships. At the same time, our consulting-led, AIpowered strategy is helping us create larger transformation opportunities. We see AI as a long-term growth driver that will expand the addressable market for technology and business transformation. We are already seeing its potential reflected in the momentum across our AINative Unit and AI offerings portfolio".

Moreover, IT services operating margin for Q2FY27 was at 16.5%, up by 0.5% QoQ and down by 0.2% YoY. Earnings per share for the quarter was Rs 3.23 ($0.03 ), an increase of 0.9% QoQ and an increase of 4.2% YoY. Also, operating cash flows were Rs 53.0 billion ($553.6 million), an increase of 61.3% QoQ and at 165.8% of net income for the quarter.

Also, Aparna Iyer, Chief Financial Officer, said, "Our operating margin for the quarter was 16.5%, an expansion of 0.5% sequentially. We have delivered this improvement even while continuing to invest in our business and people. We remain relentless in driving cash flow conversion. Q2 is yet another quarter where our operating cash flow has been robust and stood at 166% of net income."

Wipro ADR Crashes

In the pre-market at NYSE, Wipro's ADR dropped by nearly 3%. However, when market opened, the ADR recovered some losses but still traded in deep red. At the time of writing, Wipro's ADR performed at $1.7795, down by 1.14%.

Wipro Q3 Guidance

Wipro expects IT services business revenue to decline at the lower end of -1.5%, but the upper end of the growth guidance stood at 0.5%, signalling that woes still persist. The -1.5% and 0.5% revenue guidance translates to $2,571 million to $2,625 million for the December 2026 quarter.

Wipro's shares will react to Q2 results on Friday. On earnings day, the stock surged by 1.6% on BSE to Rs 173.70 apiece with a market cap of Rs 1,72,055.81 crore.