WIPRO LTD earnings calls

TCV deals, GCC sales, salary hike timing

Q (Girish Pai · BOB): Analyst asked why total contract value (TCV) fell quarter on quarter, whether many customers are selling GCCs to vendors, and when the next salary increase will happen.

A: Management said a few Q2 contracts could not be signed on time and slipped to the next quarter, and they expect those deals to be signed. They described four types of GCC opportunities (greenfield, brownfield, monetization) and said they partner across all of them. On salary hikes, they said a hike was just rolled out effective March 2026 so a new increase is not under consideration now.

"As far as our TCV of Q2 is concerned, we had few deals where the contract could not be signed on time." — Srinivas Pallia (CEO)

AI diffusion question (audio cut)

Q (Sudheer Guntupalli · Kotak Mahindra AMC): Analyst began asking about AI technology moving from hardware into services and consulting, but the audio cut off.

A: There was no management answer in this exchange; the analyst's question was interrupted and not heard clearly. The analyst tries again in the next exchange.

Use cash for big M&A moves?

Q (Sudheer Guntupalli · Kotak Mahindra AMC): Analyst asked whether the company might use its cash-rich balance sheet to make large acquisitions to gain advantage as AI diffuses through the ecosystem.

A: Management said their growth strategy is both organic and inorganic and they pursue acquisitions that enhance a consulting-led, AI-powered strategy in priority sectors and markets. They gave examples: HARMAN DTS added design-to-manufacture and connected services capabilities; MindSprint added food and agribusiness, supply chain and farm-to-fork capabilities.

"Today, you know, if you look at broadly, our growth strategy is both organic and inorganic." — Srinivas Pallia (CEO)

Banking (BFSI) demand and growth

Q (Ravi Menon · Axis Capital): Analyst asked why Wipro is not seeing the full benefit from improving BFSI spending, whether client issues are holding growth back, and if BFSI will lead growth next year.

A: Management said BFSI grew 1% sequentially and 1.3% year on year, with good wins and a previously delayed mega-deal now starting to ramp. They noted a European customer had moved work to a captive earlier but momentum is returning, Capco is performing well, and AI and data investments in BFSI are growing, leaving a strong pipeline; they said growth leadership will be contested between BFSI and tech.

"So, Ravi, if you look at BFSI from a Wipro perspective, we grew 1% sequentially and 1.3% on a year on year basis." — Srinivas Pallia (CEO)

Client issues, acquisitions, margin guidance

Q (Sandeep Shah · Equirus): Analyst asked for updates on client-specific issues, the inorganic growth from AlphaNet/MindStreet and what part of revenue was organic in 2Q, and whether margins can return to 17-17.5% by Q4.

A: Management said a large part of the client-specific issues is behind them and should be largely done by Q3. They said MindSprint gave one month of revenue as part of a structured deal and AlphaNet is a small tuck-in within a large client and not material. On margins, they aim to continuously improve margins despite investments, will invest in AI and clients, and want to get back to the target band but offered no timeline.

"A large part is behind us and, you know, effective Q3, we should be--a large part of it should be done." — Aparna C. Iyer (CFO)

Demand outlook and deflation stage

Q (Girish Pai · BOB): Analyst asked if demand over the next 12 months is better than the last 12 months, and where we are in the deflationary cycle.

A: Management said the demand environment is unchanged but client conversations are increasingly about accelerating AI adoption and innovation, and they see a strong pipeline for Q3 and Q4 across sectors like BFSI, tech, energy and physical AI initiatives. On deflation, they said typical contracts run about 2 to 2.5 years and that they have been in the deflationary cycle for about 1.5 to 2 years, so they expect an inflection in a few quarters.

"So, you know, we have spoken about this in the past, Girish. You know, typically, our contracts are about 2 to 2.5 years in terms of the average tenure." — Aparna C. Iyer (CFO)

Healthcare weakness and deal slippages

Q (Vibhor Singhal · Nuvama Equities): Analyst asked why healthcare was weak and how the vertical will perform, and whether Q2 deal slippages were due to client pullbacks or will come in next quarter.

A: Management said US healthcare is affected by policy changes and large payers are focused on cost takeout, tightening discretionary spend, and prioritizing AI automation and productivity; Wipro has end-to-end platforms combining ACA, Medicare and Medicaid and expects some seasonal benefit in Q3 though smaller than prior years. On deals, they said some Q2 paperwork did not get signed but those deals are being picked up in Q3 and the pipeline is robust and positive.

"We expect health to benefit on account of seasonality in quarter 3, though not to the extent seen in previous years." — Srinivas Pallia (CEO)

Health enrollments and headcount changes

Q (Ashwin Mehta · Ambit Capital): Analyst asked how big the health exchange enrollment drop impact is and outlook for December quarter, and asked about the large headcount cuts and hiring given improved deal flow.

A: Management said they do not disclose the specific health enrollment number but noted policy-driven impacts and that the health deal pipeline is building with first-time outsourcers; bookings and the pipeline give confidence for a better Q4 outlook. On headcount, management said year-on-year headcount is flattish, they did not go to campuses in the first half, hiring should even out and AI-driven productivity is helping.

"From the headcount, if you look at it, year on year, it is flattish." — Saurabh Govil

Furloughs, delayed deals, growth outlook

Q (Dipesh Mehta · MK Global): Analyst asked how furloughs will play out this year, whether the two delayed deals will be signed this quarter, and when sequential growth might resume.

A: Management said furloughs are seasonal and occur every Q3 and are expected to be broadly in line with last year and are baked into guidance. They said the large delayed deals are in progress of being signed and they are confident of securing both, and they are endeavouring to drive consistent organic sequential growth but provide quarterly guidance only and will update further in January.

"They are expected to be broadly in line with what we saw last year." — Aparna C. Iyer (CFO)

How AI is used across services; guidance impact

Q (Gaurav Rateria · Morgan Stanley): Analyst asked which service lines are at what stage of AI adoption and whether Q3 guidance reflects pushed-out deals and how Q4 would benefit if deals cluster in Q3.

A: Management outlined a three-category AI approach: Build AI (supported by WeGA platform for product and software lifecycle), Run AI (WINGS for run and operate productivity) and Reimagine AI (AI consulting, new AI services, and AI-native industry platforms), and said this is driving pipeline and wins. They confirmed that deals signing in Q3 would have a positive impact on Q4 revenue and said Q3 guidance mainly factors furloughs and lower working days.

"It will have a positive impact on the quarter 4, outlook for revenue." — Aparna C. Iyer (CFO)