Why Did Wipro (NSE:WIPRO) Report Strong Cash Flow Despite Lower Profit?
Wipro (NSE:WIPRO) reported Q2 FY27 gross revenue of INR 24,750 crore, up 9.1% YoY. Net income was INR 3,200 crore, down 1.9% YoY. IT services operating margin improved to 16.5%. Operating cash flow was INR 5,300 crore, 165.8% of net income. Total bookings were USD 2,595 million. Management guided for a sequential IT services revenue range of -1.5% to +0.5% for the December quarter.
How this was made
The 30-second read
Why it matters
The earnings beat on cash conversion may support short‑term buying, but guidance uncertainty limits upside.
Market read
First earnings release for the quarter; provides fresh data for traders tracking Indian IT stocks.
What to watch
Currency fluctuations and AI-service adoption rates could materially affect future margins.
Background
Wipro reported Q2 FY27 results with revenue up 9.1% YoY, operating margin improvement, and cash flow at 165.8% of net income.
Market effects
IT services sector may see modest confidence from strong cash conversion, but revenue growth remains gradual.
Indian market could react positively to robust cash flow, though broader sentiment tempered by cautious guidance.
Limited; primarily affects investors with exposure to Indian IT services.
Counterpoint
Despite strong cash flow, the slowdown in bookings and cautious guidance could pressure the stock.
Key entities
- companyWipro
Indian IT services firm reporting Q2 FY27 results.
