Wipro Q2 FY27 Results (NSE: WIPRO)
Signal: Margin expansion
The read
The key inflection is standalone EBIT margin rising to 18.8% from 16.4% a year ago and 17.1% in the prior quarter, while revenue growth reached 6.6% YoY; employee costs grew only 1.1% but subcontracting grew 14.4%, so margin durability depends on whether the delivery-cost increase moderates.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹18,941.6 Cr | 6.6% | 2.8% |
| EBIT | ₹3,553 Cr | 22.3% | |
| Net profit | ₹2,862.7 Cr | 9.5% | |
| EPS | ₹2.89 | 15.6% | |
| EBIT margin | 18.8% |
P&L walk
Standalone revenue increased to 189,416 million, +6.6% YoY and +2.8% QoQ; derived EBIT rose 22.3% YoY to 35,530 million as employee costs grew only 1.1%, although subcontracting grew 14.4% and finance costs grew 28.9%.
Key positives
- Standalone revenue reached 189,416 million, up 6.6% YoY and 2.8% QoQ, extending the recovery from the 177,700 million year-ago base.
- Derived EBIT rose 22.3% YoY to 35,530 million and EBIT margin expanded 241bps to 18.8%; employee costs increased only 1.1% against revenue growth of 6.6%.
- Operating cash flow rose 38.9% YoY to 60,687 million in H1FY27, exceeding reported H1 PAT of 57,284 million.
- Basic EPS rose 15.6% YoY to ₹2.89, ahead of PAT growth because the 600 million-share buyback reduced the equity base.
Key concerns
- Subcontracting and technical fees rose 14.4% YoY to 35,373 million, faster than revenue growth and increasing reliance on external delivery capacity.
- Finance costs increased 28.9% YoY to 3,645 million, materially faster than revenue growth.
- Other income declined 24.9% YoY to 6,705 million, reducing a non-operating support to profit even though PAT still grew.
- The asset-base check is mixed: depreciation increased 7.7% YoY while PP&E declined from 68,146 million to 66,994 million, with CWIP rising to 5,913 million.
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