Wipro Ltd

RSU grant details

• Grant: 84,656 ADS RSUs and 27,656 RSUs under RSU Scheme 2024.
• Effective date: August 24, 2026.
• Vesting per schedule approved by Nomination and Remuneration Committee; exercise period as approved.
• Identified employees of the company or subsidiary are eligible.

Partnership details

• Wipro and Databricks expand partnership to modernize data foundations and accelerate AI adoption.
• A self-contained Databricks business practice will deliver industry-specific AI solutions.
• The collaboration integrates Databricks capabilities with Wipro Intelligence and WEGA to support enterprise-scale AI.
• 300+ agentic AI and data use cases delivered across multiple industries.
• Recognitions: 2025 Banking Partner of the Year and 2026 Innovation Partner of the Year from Databricks.

Impact and outlook

• The practice aims to move clients from AI pilots to governed, enterprise-scale AI implementations.
• Context-aware solutions apply AI to core business challenges such as banking, manufacturing, telecom, and energy.
• Enterprise governance and security by design with trusted data foundations.

Financial Performance

• IT services revenue for Q1: $2.61 billion, up 0.9% YoY, down 1.2% sequential.
• IT services margin: 16%, down 1.2 percentage points YoY.
• Net income for the quarter: INR 33.6 billion; EPS: INR 3.2; +0.6% YoY.
• Operating cash flows were 98% of net income.
• Gross cash including investments stood at $4.3 billion.
• ETR for Q1 was 22.6% vs 21.6% year-ago.
• Rupee depreciation benefits supported margins.
• Mindsprint acquisition completed; revenues to be consolidated from Q2.

Segment Trends

• Americas 1 flat YoY, down 2.3% sequential.
• Americas 2 down 7.3% YoY, down 2.5% sequential.
• Europe grew 6% YoY, but down 0.9% sequential.
• APMEA grew 13.5% YoY and 4.4% sequential.
• BFSI grew 2.6% YoY, down 1.2% sequential.
• Consumer grew 1.9% YoY, up 0.7% sequential.
• Technology and communications grew 10.8% YoY, up 0.2% sequential.
• Health declined 3.0% YoY, down 2.6% sequential.
• EMR declined 8.9% YoY, down 3.6% sequential.
• Order bookings totaled $3.4 billion; large deals $1.6 billion; 13 large deals.

Cash Flow and Liquidity

• Operating cash flows were 98% of net income.
• Gross cash including investments stood at $4.3 billion.
• Accounting yield on average investments in India was 7.2%.
• ETR for Q1 was 22.6% vs 21.6% year-ago.
• Rupee depreciation benefits supported margins.

Guidance and AI Strategy

• Q2 IT services revenue guidance: $2.574b to $2.627b.
• Sequential CC guidance: -1.5% to +0.5%.
• Board declared interim dividend of INR 2; payouts exceed $3 billion in 12 months.
• Mindsprint revenues are included in Q2 guidance.
• AI-native unit launched; building industry platforms and partnerships.
• Applied AI Center of Excellence for Claude models powered by Anthropic launched.
• WINGS platform gaining traction for AI-enabled operations.
• Capco AI Governance and Risk Excellence Award; UK AI Lab OpenAI Codex Hackathon win.
• Margin recovery targeted at 17%–17.5%; timing is uncertain.

Q&A Highlights

• Headcount rose due to Mindsprint; excluding Mindsprint, headcount down 2,500.
• Margins expected to revert to 17%–17.5%; timing uncertain.
• Guidance not broken out into organic vs inorganic components.
• Healthcare recovery timeline not forecast beyond Q2.
• Pipeline remains healthy; AI-driven deals create longer-term opportunities.
• Competition rising as AI budgets compress traditional IT spend.
• Large AI deals may improve productivity but can pressure margins in some cases.
• AI-native Wings and services are core to future growth.