Wipro to Announce Q4 Earnings, Share Buyback Focus Expected
Wipro Set to Announce Q4 FY26 Results Amid Broader Uncertainty in IT Sector
Wipro Ltd is scheduled to announce its Q4 FY26 results on April 16 after market hours, marking the next major milestone in the earnings season. A recent CNBC-TV18 poll has projected dollar revenue to rise 1.1% sequentially to $2,666 million, while rupee revenue is seen increasing 4.1% quarter-on-quarter to Rs 24,343 crore.
According to the poll, Wipro's EBIT is projected at Rs 4,158 crore, with margins likely to decline to 17.1% from 17.6%, indicating continued pressure on profitability. Constant currency growth is expected to remain muted at around 0.4-0.5%, supported by the Harman DTS acquisition, which may contribute 1.5-2%. On an organic basis, revenue is likely to decline by about 1%, with margins seen contracting by roughly 50 basis points.
| Brokerage | Constant Currency Growth (QoQ) |
|---|---|
| CLSA | -2.0% |
| JPMorgan | -2.0% |
| Morgan Stanley | -1.0% |
| UBS | -1.0% to 0.0% |
| Nomura | -1.0% to 1.0% |
| Citi | -1.0% to 1.0% |
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Brokerages remain cautious on near-term growth, with firms such as CLSA, JPMorgan, Morgan Stanley, and UBS expecting constant currency growth between -2.0% and 0.0% quarter-on-quarter. Nomura and Citi project a range of -1.0% to +1.0%.
The key monitorable for investors will be Wipro's guidance for Q1 FY27, especially amid a still-uncertain demand environment. The company will also consider a share buyback proposal at its April 16 board meeting, its first in three years, with expectations pegged at Rs 16,000-18,000 crore. No announcement has been made regarding any interim or final dividend; the total interim dividend payout for FY26 currently stands at Rs 11 per equity share.
In recent developments, Wipro had secured a $1 billion, eight-year strategic transformation deal with Olam Group, including a committed spend of $800 million, aimed at strengthening its presence in the food and agri-business segment. Brokerage estimates also suggest steady year-on-year growth, with HDFC Securities expecting revenue growth of around 8.7% YoY and 3.9% QoQ, with stable margins and double-digit growth in adjusted profit after tax.
Investor Takeaway
Investors should be cautious of Wipro's near-term growth prospects due to declining profitability and muted constant currency growth.
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