Wipro margin rebounds sequentially, but lower other income cuts annual profit
Operating margin rose 2.02 percentage points sequentially, while a 29.61% fall in other income pushed year-on-year net profit down 1.85%.
Filed 16 Apr 2026, 16:26 IST · after market close · Wipro Ltd (WIPRO)
Key takeaways
- Consolidated operating margin recovered 2.02 percentage points sequentially to 20.26% as revenue grew +2.89% while expenses rose only +0.35%.
- Year-on-year net profit fell -1.85% despite operating profit growth of +6.17%, because other income declined -29.61% and contributed 18.36% of pre-tax profit.
- The stock fell -2.83% on the first session after the results, a smaller move than its 5.09% median absolute reaction across the last eight results.
Price around the results
Sequential margin recovery offsets weaker profit conversion
Wipro's consolidated revenue increased +2.89% sequentially, while expenses grew only +0.35%, lifting operating margin by 2.02 percentage points. Net profit rose +11.97% sequentially, helped by the operating recovery and lower depreciation, although other income fell -15.00%. Other income still accounted for 18.36% of pre-tax profit, making reported profit meaningfully reliant on non-operating income.
Annual growth did not translate into higher net profit
Year-on-year revenue grew +7.70%, but expenses increased faster at +8.09%, narrowing operating margin by 0.29 percentage points. Operating profit nevertheless rose +6.17%, while lower other income pulled pre-tax profit down -1.59% and net profit down -1.85%. The tax rate was also 0.20 percentage points higher year on year, adding to the pressure on net profit.
Margin rebounds after a three-quarter slide
Operating margin fell from 20.55% in Q4FY25 to 19.12% in Q1FY26, 19.26% in Q2FY26 and 18.24% in Q3FY26 before recovering to 20.26% in Q4FY26. The latest margin was 0.57 percentage points above the 19.69% median for the 19 Information Technology peers that had reported the quarter.
Initial market reaction was negative but not unusual
The stock declined -2.83% on the first session after the results, with volume at 3.67 times the reference level, and was down -5.18% after five sessions. The first-session move was smaller than Wipro's 5.09% median absolute reaction across its last eight results, when four reactions were positive and four were negative. The results were filed after market close on 16 Apr 2026.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹24,236 cr | ₹23,556 cr | +2.89% | +7.70% |
| Other income | ₹857 cr | ₹1,008 cr | -15.00% | -29.61% |
| Expenses | ₹19,327 cr | ₹19,259 cr | +0.35% | +8.09% |
| Operating profit | ₹4,909 cr | ₹4,296 cr | +14.27% | +6.17% |
| Operating margin (%) | 20.26% | 18.24% | — | — |
| Interest | ₹370 cr | ₹366 cr | +1.23% | -1.75% |
| Depreciation | ₹729 cr | ₹805 cr | -9.50% | +0.94% |
| Profit before tax | ₹4,668 cr | ₹4,134 cr | +12.91% | -1.59% |
| Tax | ₹1,146 cr | ₹989 cr | +15.89% | -0.77% |
| Net profit | ₹3,522 cr | ₹3,145 cr | +11.97% | -1.85% |
| EPS (₹) | ₹3.34 | ₹2.98 | +12.08% | -2.05% |
Operating margin of 20.26% compares with a Information Technology sector median of 19.69% across 19 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.83% | -3.47% |
| Next session | -3.70% | — |
| 5 sessions | -5.18% | -3.95% |
| 15 sessions | -6.46% | — |
| 30 sessions | -0.20% | — |
Volume on the results session was 3.67× its 20-day average.
What to watch
- Whether operating margin holds above 20.26% after the sequential recovery.
- Whether expenses remain below the pace of revenue growth seen at +2.89% sequentially.
- Whether other income's contribution to pre-tax profit moves below 18.36%.