Sequentially, growth is expected to remain muted. Most brokerages estimate low single-digit growth in constant currency (CC) terms, largely supported by the integration of the Harman Digital Transformation Services (DTS) business. Emkay Global expects about 1.4% sequential growth in USD revenue, factoring in roughly 2% contribution from the acquisition, partially offset by cross-currency headwinds.
ICICI Securities pegs constant currency growth slightly higher at 1.7% quarter-on-quarter, although it notes that organic growth remains largely flat, indicating limited underlying demand momentum. Jefferies, on the other hand, expects growth to come in at the lower end of Wipro’s guidance range of 0-2%, citing the slower ramp-up of large deals.
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 broadly expect EBIT margins to contract in the range of 40-70 basis points sequentially in the IT services segment.
While rupee depreciation and operational efficiencies may provide some support, they are unlikely to fully offset these headwinds. Kotak Equities expects broadly stable margins as currency benefits offset cost pressures, but flags continued pricing pressure and the loss of a large deal as key concerns for the quarter.
Demand trends remain mixed across verticals. BFSI is expected to show relatively healthy growth, while technology, communication and consumer segments are likely to remain stable. However, healthcare is expected to remain weak due to lower spending from payer and provider clients, impacted by reduced US federal support for programmes like Medicaid and Medicare.
The energy and resources vertical is also expected to remain subdued, with analysts noting the absence of large deal wins in this segment over the past year. At the same time, macro uncertainties, including geopolitical tensions, continue to cloud visibility on discretionary IT spending, although there are no clear signs yet of a sharp slowdown in decision-making.Deal wins, and pipeline conversion will be a key area of focus. ICICI Securities expects total contract value (TCV) for the quarter to come in at around $3.5 billion, with large deals contributing about $1 billion. However, analysts remain cautious about the pace of ramp-up, particularly for mega deals signed in previous quarters.
Management commentary on FY27 guidance will be closely tracked. Most brokerages expect Wipro to guide for flat to marginally negative growth in the June quarter, with estimates ranging from -2% to +0.5% in constant currency terms. This reflects ongoing uncertainty in the demand environment and continued pressure on discretionary spending.
Another key monitorable will be the company’s outlook on AI adoption. While artificial intelligence is increasingly seen as a structural growth driver, there are concerns about its deflationary impact on traditional IT services revenues. Analysts expect management to provide clarity on how Wipro plans to capture emerging opportunities while mitigating potential pricing pressures.
Capital allocation is also likely to be in focus. With a history of returning excess cash to shareholders through buybacks and dividends, investors will also eye buyback announcements, particularly given the company’s relatively conservative growth trajectory compared to peers.
Overall, Wipro’s Q4 performance is expected to reflect a familiar pattern with modest revenue growth supported by acquisitions and stable verticals, offset by margin pressures and subdued organic momentum.
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