Wipro’s growth, margin trade-off keeps investors on edge

Wipro Ltd shares fell a little over 8% on Monday after Q3FY26 results and management comments signalled subdued revenue growth and margin pressure.

- Harsha Jethmalani [e-mail]

Despite furloughs, Q3 revenue growth came closer to the upper end of the guidance range of -0.5% to +1.5%. Sequential constant currency (CC) revenue grew 1.4%, aided by 80 basis points (bps) contribution from the recent DTS Harman acquisition. However, other shortfalls prompted earnings downgrades. Total contract value of deals declined 29% sequentially and 6% year-on-year (yo-y) to $3.34 billion, compared with $4.5 billion in each of the previous two quarters. Large deal bookings in Q3 fell 69.5% yo-y and 9.4% sequentially to $871 million. While the deal pipeline remains healthy, management flagged delays in the ramp-up of large d