Wipro reported a 1.2% sequential decline in constant currency revenue for the first quarter of FY27. Despite a strong rise in large deal wins, the company faced margin pressure, leading analysts at Motilal Oswal to trim their FY27 earnings estimates.
Wipro Limited has released its financial results for the first quarter of the fiscal year 2027, reporting an IT services revenue of USD 2.6 billion. This reflects a 1.2% decline on a sequential basis when measured in constant currency terms, a metric used to strip out the impact of currency fluctuations to show real operational growth. This performance was largely in line with earlier market expectations.
While top-line growth faced pressure, the company’s ability to secure large contracts remained a point of focus. The total value of large deals signed during the quarter reached USD 1.6 billion, marking a 12.9% increase compared to the previous quarter. However, the overall order intake, which includes smaller projects, dipped by 2.4% quarter-on-quarter in constant currency, indicating a mixed demand environment for the IT major.
Profitability metrics also drew attention as the adjusted EBIT (Earnings Before Interest and Taxes) margin settled at 16%. This fell slightly short of the 16.1% margin anticipated by Motilal Oswal. For the quarter, the company reported an adjusted Profit After Tax (PAT) of INR 34 billion, which reflected a 4.7% increase from the preceding quarter, matching consensus estimates.
Looking at the broader financial context, Wipro achieved year-on-year growth in revenue, adjusted EBIT, and adjusted PAT at 10.6%, 9.7%, and 0.6% respectively. In response to the margins observed in the first quarter and the weaker organic growth trends identified for the first half of the year, Motilal Oswal has lowered its FY27 earnings per share (EPS) forecast by approximately 3.5%. The brokerage continues to maintain a Neutral stance on the stock, valuing it at 11 times its estimated FY28 earnings.
For investors, the immediate monitorable will be the company's ability to convert the reported large deal wins into actual revenue growth in the coming quarters. The IT sector is currently navigating a period where clients are cautious with discretionary spending, making execution speed and margin protection critical. Investors may track future management commentary for updates on demand visibility, potential improvements in utilization rates, and the impact of the ongoing restructuring efforts on long-term operating margins.