Wipro shares fell 2% on 17 July, hitting a day’s low of Rs 173.55 after Q1 FY27 margins slipped to a 15-quarter low despite revenue growth.

The numbers tell a mixed story. For Q1 FY27, Wipro posted a consolidated net profit of Rs 3,352 crore, up just 0.6% from Rs 3,330 crore in the same quarter last year.

Revenue climbed 10.6% year-on-year to Rs 24,479 crore, though it came in a touch below what analysts had been expecting. Margins were the real sore point.

IT services operating margin fell to 16%, down 130 basis points sequentially and 120 basis points on-year. EBIT dropped 8.4% to Rs 3,829 crore, with EBIT margin contracting to 15.6% from 17.2% a year ago.

CFO Aparna Iyer pointed to wage hikes and fresh spending ahead of expected growth as the main drags, and said a full recovery could take a few quarters to play out.

There was better news buried in the order book. Large deal bookings rose 12.9% quarter-on-quarter to $1.63 billion, even as total bookings eased 2.4% to $3.37 billion. Wipro signed 13 large deals over the quarter.

For the September quarter, the company guided for IT services revenue between $2.57 billion and $2.63 billion, working out to sequential growth of anywhere from a 1.5% decline to a 0.5% rise in constant currency terms.

That range fell short of Street hopes. The board also declared an interim dividend of Rs 2 per equity share. Shareholders on record as of 27 July will be eligible, with the payout due on or before 14 August.

At 10:18 am, Wipro was trading at Rs 175.40 on the NSE, down 1.32% or Rs 2.34, having clawed back a bit from the day’s low.

It’s a stock that’s had a rough run lately: down 3.7% over the past month and off nearly 28% over six months, well below its 52-week high of Rs 273.10 hit in December.

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