Wipro Q4 Preview: Analysts Expect Inorganic Growth to Boost Topline Amid Weaker Margins
Wipro Q4FY26 Earnings in Focus as Investors Await Results
India's fourth-largest IT services firm, Wipro, is expected to remain on investors' radar this week as the company prepares to announce its January-March quarter (Q4FY26) earnings on Thursday, 16 April. The company will also consider a proposal to buy back equity shares on the same day.
Brokerages have expressed mixed expectations for Wipro's Q4FY26 performance, with many anticipating weak and mixed results. The company's modest growth is largely driven by acquisitions, while organic performance remains subdued, and margins face pressure from wage hikes and low-margin businesses. Additionally, near-term guidance is likely to stay cautious despite a stable deal pipeline and support from currency tailwinds.
Wipro Q4FY26 Results Preview
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The following table provides a comparison of brokerages' expectations for Wipro's Q4FY26 performance:
| Brokerage | Revenue Growth (QoQ) | Organic Revenue Decline (QoQ) | EBIT Margin |
|---|---|---|---|
| Kotak Securities | 0.9% (CC) | 0.7% | Stable |
| Equiris Securities | 0.8% (CC) | 0.8% (CC) | Dips 35 bps QoQ |
| Axis Securities | 3% | N/A | Improves 138 bps QoQ |
| Motilal Oswal | 1% (CC) | 0.5% QoQ | Contracts 50 bps QoQ |
Brokerages expect Wipro's revenue to grow modestly, driven largely by acquisitions, while organic growth remains subdued. Kotak Securities expects revenue to grow 0.9% quarter-on-quarter (QoQ) in constant currency (CC) terms, with a 160-bps contribution from the DTS acquisition. Equiris Securities expects 0.8% QoQ growth in IT services US dollar sales in CC terms, with an organic decline of 0.8% QoQ in CC terms.
Wipro's Share Price Performance
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Wipro shares have dropped about 23% this year so far, declining from ₹264 apiece to ₹203, while eroding ₹64,311 crore in market value and bringing its total market capitalisation down to ₹2.12 lakh crore. The decline reflects significant underperformance compared to the 9% fall in the benchmark NSE Nifty 50 Index. Sentiment around the tech services giant has been weighed down by AI developments, including Meta Platforms Inc's latest model launch and Anthropic's new tools for building AI agents.
Investor Takeaway
Wipro's Q4FY26 earnings are expected to be driven by inorganic growth, but margins may face pressure due to wage hikes and low-margin businesses.
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