IT services major Wipro is expected to report steady revenue performance but a decline in profitability for the March quarter. Wage hikes, acquisition-related costs, and weak discretionary spending are likely to weigh on margins despite stable demand in select verticals. According to an average of seven broker estimates, Wipro is likely to post around 9% year-on-year revenue growth, while net profit is expected to decline about 5% from a year ago.
ICICI Securities anticipates constant currency growth slightly higher at 1.7% quarter-on-quarter, although organic growth remains largely flat. A key drag on margins is likely to be wage hikes implemented from March 1, along with integration costs related to the Harman acquisition. Brokerages expect EBIT margins to contract in the range of 40-70 basis points sequentially in the IT services segment.
Demand trends remain mixed across verticals, with BFSI expected to show relatively healthy growth, while healthcare is anticipated to remain weak. Deal wins and pipeline conversion will be a key area of focus, with total contract value for the quarter expected to come in at around $3.5 billion. Management commentary on FY27 guidance will be closely tracked, with estimates reflecting ongoing uncertainty in the demand environment.
