Shares of Indian IT giants Wipro Ltd and Tech Mahindra Ltd (TechM) saw gains in early Thursday trade, July 16, 2026, as the market awaited their first-quarter financial results for the June quarter. At 10:10 am IST, Wipro shares were up 1.58 percent, trading at Rs 177.35 apiece on the BSE, while TechM rose 1.68 percent to Rs 1523.90 per share.
Wipro's Q1 Outlook: Headwinds and Flat Profit
Analysts generally anticipate a challenging quarter for Wipro. Projections suggest a sequential decline in constant currency (CC) revenue, ranging from 0.2 to 1.3 percent. This decline is expected despite an inorganic contribution of about 0.7-1 percent from Mindsprint, largely due to delayed project ramp-ups, weakness with a major client, and a softer US BFSI (Banking, Financial Services, and Insurance) sector.
- Sales Growth: Wipro is forecast to report 12-14 percent year-on-year (YoY) growth in sales.
- Profitability: Despite sales growth, profit is expected to remain largely flat. Centrum Broking specifically projects a 1.4 percent YoY drop in net profit to Rs 3,285.30 crore, on net sales of Rs 25,257 crore, with a margin of 15.4 percent.
- Deal Wins: Total contract value for deals is estimated around $1.8 billion, slightly below the four-quarter average of $2 billion.
- Sectoral Impact: The Healthcare vertical continues to be affected by policy-related headwinds, and the Consumer and BFSI sectors are also likely to remain soft.
- Q2FY27 Guidance: Wipro is expected to guide for Q2FY27 revenue growth in CC terms between -1 percent and 1 percent quarter-on-quarter.
Tech Mahindra's Q1 Outlook: Growth Drivers and Margin Improvement
In contrast, Tech Mahindra is poised for a more positive quarter, driven by specific growth areas and strategic initiatives.
- Revenue Growth: TechM is expected to achieve approximately 1 percent quarter-on-quarter CC revenue growth. This is primarily attributed to the continued ramp-up of large telecom deals and healthy momentum within its BFSI segment.
- Profitability: The company is seen reporting significant profit growth, with projections ranging from 39-40 percent YoY. Centrum Broking forecasts Q1 profit to rise 39 percent YoY to Rs 1,585 crore, on a 15.7 percent YoY increase in sales to Rs 15,449 crore.
- Margins: Ebit (Earnings Before Interest and Taxes) margin for TechM is estimated at 14.2 percent. Analysts anticipate sequential margin improvement, boosted by efforts focused on high-margin segments, favorable currency tailwinds, and benefits from 'Project Fortius'.
- Deal Wins: Deal wins are expected to be around $950 million, consistent with the previous four-quarter average.
Overall, the Q1 results for these IT majors will provide crucial insights into the broader trends affecting the technology services sector, particularly in light of global economic conditions and client spending patterns.