Wipro: revenue accelerates to +10.6%, but profit barely grows as margins compress

10 августа Wipro раскрыла результаты за первый квартал 2026 финансового года (апрель–июнь 2025 календарного). Выручка выросла на 10,6% год к году, до 244 786 млн INR, EBITDA – на 9,6%, до 46 471 млн INR, но чистая прибыль прибавила лишь 0,6%, до 33 520 млн INR, так как маржа сократилась. При текущей цене акция выглядит скорее привлекательно: мультипликатор EV/EBITDA (9,55) заметно ниже собственного трёхлетнего среднего (12,9), а дивидендная доходность 4,79% обеспечивает весомую поддержку.

Key takeaways

— Wipro's revenue accelerated to +10.6% YoY – the fastest pace in five quarters

— EBITDA margin fell to 19.0% from 19.2% a year earlier, limiting profit growth

— Net profit rose only 0.6% due to higher costs and base effects

— Leverage remains low: net debt / EBITDA LTM – 0.35

— Dividend yield of 4.79% – above the average of recent years, making the share attractive for income investors

— The portal's model implies +5% upside to the current price

Attractiveness

Key figures, INR bn

Wipro's revenue accelerated to +10.6% YoY – the fastest pace in five quarters

In the first quarter of fiscal 2026 (April–June 2025), Wipro's revenue reached 244,786 million INR, up 10.6% year-on-year. This is the best result in five quarters: previous growth rates were more modest, ranging from +0.8% to +7.7%.

The acceleration is driven by recovering demand for IT services, particularly in digital transformation and cloud solutions. The company continues to benefit from clients' cost optimization and growing automation projects.

EBITDA margin fell to 19.0% from 19.2% a year earlier, limiting profit growth

EBITDA in the reported quarter grew 9.6% year-on-year to 46,471 million INR, but the margin declined from 19.2% to 19.0%. Margin pressure stems from higher employee costs and investments in new areas.

The margin decline signals that the company cannot yet fully offset rising costs through pricing or better project mix. This limits profit growth even with accelerating revenue.

Net profit rose only 0.6% due to higher costs and base effects

Net profit for the quarter was 33,520 million INR, only 0.6% higher than a year ago. Revenue and EBITDA growth did not translate into comparable profit growth due to lower operating margin and, likely, higher tax charges.

On a trailing twelve-month basis, net profit reached 132,190 million INR, implying a net margin of about 13.9% (calculated). However, in the reported quarter, net margin was 13.7% versus 15.0% a year earlier – a notable deterioration.

Leverage remains low: net debt / EBITDA LTM – 0.35

At the end of the quarter, Wipro's net debt stood at 62,319 million INR, corresponding to a net debt / EBITDA LTM ratio of 0.35. This is a low level of leverage, leaving room for higher dividends or share buybacks.

Net debt increased by 26.9 billion INR during the quarter and by 88.2 billion INR over the last 12 months. Nevertheless, given the scale of EBITDA (179,491.8 million INR on an LTM basis), leverage remains comfortable.

Dividend yield of 4.79% – above the average of recent years, making the share attractive for income investors

Over the last 12 months, Wipro paid dividends providing a yield of 4.79% at the current price. This is above the company's historical average dividend yield, making the share attractive for income-oriented investors.

The company consistently generates operating cash flow (149,300 million INR on an LTM basis), which comfortably covers capital expenditures (about 15,000 million INR on an LTM basis, calculated). This allows maintaining a generous dividend policy without harming the balance sheet.

In the next reporting period, attention should be paid to margin dynamics and the company's ability to sustain revenue growth – these determine the sustainability of dividend payments.

The portal's model implies +5% upside to the current price

Our value-creation model, based on EBITDA growth and target multiple, shows the share trades 5% below fair value. This is moderate upside potential, which combined with dividend yield gives overall attractiveness.

The current EV/EBITDA LTM multiple is 9.55, significantly below the three-year average (12.9). P/E LTM is 12.5, which also looks moderate for a company with accelerating revenue growth.

If Wipro manages to stabilize margins and sustain growth rates, the share has potential for re-rating towards its own historical average.

Valuation on the latest reported figures

Bottom line

Wipro's Q1 FY2026 report highlights a key achievement – revenue acceleration to +10.6% YoY, the fastest pace in five quarters. However, profit growth nearly stalled (+0.6%) due to margin compression, which is the key challenge for the company. At the same time, leverage remains low, and a dividend yield of 4.79% provides solid support for the share. The portal's model (+5% upside) and a multiple below its own history make the share rather attractive, but confirming this trend requires margin stabilization in the coming quarters.