Wipro/TechM Earnings Review: Strong quarter from TechM in a subdued growth environment; Wipro weakness persists

Research evidence excerpt

Wipro/TechM Earnings Review: Strong quarter from TechM in a subdued growth environment; Wipro weakness persists

Equity Research

17 July 2026 | 1:04AM IST

INDIA IT SERVICES

Wipro/TechM Earnings Review: Strong quarter from TechM in a

subdued growth environment; Wipro weakness persists

Wipro and TechM had divergent 1QFY27 (June ‘26) results across both growth and Manish Adukia, CFA

+91(22)6616-9049 |

margins. Wipro’s print and outlook suggests continued pressure on industry revenue manish.adukia@gs.com

Goldman Sachs India SPL

growth, with key themes being (i) A persistently weak discretionary spend

Raghav Vashishthenvironment; (ii) Slow decision-making with delayed deal ramp ups; and (iii) pressure +91(22)6616-9743 |

on margins, a function of market competition and reinvestments in the business raghav.vashishth@gs.comGoldman Sachs India SPL

despite Fx tailwinds. In our view, there is limited visibility on any of these changing in Sumangala Lnu

the foreseeable future, though Wipro’s guidance implies sequential revenue growth +91(22)6616-9045sumangala.lnu@gs.com|

could be better for the sector in Sep ‘26. On the other hand, TechM’s strong deal win Goldman Sachs India SPL

momentum has translated into the company’s revenue growth now highest within

our coverage on a sequential basis, and on track to be at the higher end of our

coverage in FY27. Additionally, TechM continues to optimise costs and improve

margins, a trend that could continue and drive sector leading EBIT growth in FY27.

TechM reported 2.5% qoq constant Fx revenue growth in 1QFY27 (organic; vs.

+0.6% in 4Q), 140 bps higher than GSe, with YoY growth at +6.6% (vs. +2.4% in 4Q).

We note that this meaningfully better vs the +0.2% qoq (+3.3% YoY) revenue growth

our India IT Services coverage in 1Q.