Wipro’s margin recovers, but lower other income keeps profit under pressure
Costs grew slower than revenue, but a -21.91% QoQ fall in other income and +15.36% rise in interest dragged pre-tax profit down -2.99%.
Filed 15 Oct 2026, 15:47 IST · after market close · Wipro Ltd (WIPRO)
Key takeaways
- Consolidated revenue grew +9.06% YoY as expenses rose +8.54%, lifting operating margin by 0.39 percentage points to 19.65%.
- Net profit fell -1.92% YoY to Rs 3,199.7 cr despite operating profit growth, as other income declined -20.65% and interest expense rose +51.00%.
- Operating margin recovered 0.72 percentage points QoQ from 18.93%, but remained below Q4FY26’s 20.26%.
Price around the results
Operating recovery did not reach consolidated net profit
Wipro’s consolidated revenue rose +1.12% QoQ and +9.06% YoY, while expenses increased only +0.22% QoQ and +8.54% YoY. That lifted operating profit by +4.95% QoQ and +11.21% YoY. Pre-tax profit still fell -2.99% QoQ and -1.81% YoY as other income declined and financing and depreciation costs increased.
Other income and financing costs weakened profit quality
Other income contributed 18.17% of pre-tax profit but fell -21.91% QoQ and -20.65% YoY. Interest expense rose +15.36% QoQ and +51.00% YoY, while depreciation increased +8.99% QoQ and +26.75% YoY. The QoQ tax-rate increase of 1.33 percentage points to 23.90% added to the squeeze on net profit.
Margin is above peers but below Wipro’s recent peak
Wipro’s 19.65% operating margin was 0.93 percentage points above the 18.72% median for six reported IT peers, placing it fifth from the bottom in that group. The margin moved from 19.12% in Q1FY26 to 19.26% in Q2FY26, fell to 18.24% in Q3, peaked at 20.26% in Q4, and then recovered from 18.93% in Q1FY27.
No immediate market reaction after the filing
The consolidated results were filed after market close, so there is no post-results market move to assess yet. Across the last eight results, Wipro rose after three and fell after five, with a median absolute move of 4.34%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹24,753 cr | ₹24,479 cr | +1.12% | +9.06% |
| Other income | ₹764 cr | ₹979 cr | -21.91% | -20.65% |
| Expenses | ₹19,890 cr | ₹19,845 cr | +0.22% | +8.54% |
| Operating profit | ₹4,863 cr | ₹4,633 cr | +4.95% | +11.21% |
| Operating margin (%) | 19.65% | 18.93% | — | — |
| Interest | ₹545 cr | ₹473 cr | +15.36% | +51.00% |
| Depreciation | ₹877 cr | ₹804 cr | +8.99% | +26.75% |
| Profit before tax | ₹4,205 cr | ₹4,335 cr | -2.99% | -1.81% |
| Tax | ₹1,005 cr | ₹978 cr | +2.74% | -1.47% |
| Net profit | ₹3,200 cr | ₹3,356 cr | -4.67% | -1.92% |
| EPS (₹) | ₹3.23 | ₹3.20 | +0.94% | +4.19% |
Operating margin of 19.65% compares with a Information Technology sector median of 18.72% across 6 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 19.65% after the 0.72-percentage-point QoQ recovery.
- Whether other income’s 18.17% share of pre-tax profit reduces.
- Whether expense growth remains below revenue growth after +0.22% versus +1.12% QoQ.