Wipro Q1 results: Revenue and net profit likely to remain muted sequentially; key focus on guidance

IT giant Wipro will announce its first-quarter results on Thursday, July 16, after market hours. Along with the result, the company is expected to announce an interim dividend for FY27. According to experts, Wipro could report modest single-digit growth in revenue and fall in net profit on a sequential basis.

According to experts, Wipro Q1 revenue could remain in the range of ₹24,850 to ₹25,350 crore, up 12% to 14% YoY. Sequentially, revenue could rise 2 to 3%. The company registered revenues of ₹22,135 crore in Q1FY26 and ₹24,236 crore in the previous quarter.

Meanwhile, its consolidated net profit could fall by 4% to 5% YoY to ₹3,350 to ₹3,490 crore but could fall 1 to 4% lower sequentially. Wipro reported a net profit of ₹3,502 crore in the previous quarter and ₹3,330 crore in the June quarter of FY26. Meanwhile, rupee depreciation could provide some support to revenue.

EBIT margin may contract by 160 to 200 basis points during the quarter to 15 to 15.2%. However, margins could come under pressure due to wage hikes, delay in new deal ramp-ups, and continued investments in AI.

During the result announcement, investors will closely track Wipro's revenue growth guidance for the second quarter, management’s commentary and interim dividend announcement.

Ahead of the Q1 result announcement, Wipro shares are trading over 1% higher at ₹176.7 apiece on the NSE. So far this year, Wipro shares are trading over 33% lower amid a sell-off in broader markets, fear of AI disruption and a slowdown in new deal wins.

Technical outlook

Wipro’s short-term structure remains weak, with the stock trading below both the 20-day EMA and the 50-day EMA. The moving averages are sloping lower, while the recent recovery attempt has faced selling pressure near ₹180. The DMI setup also favours the bears, with the negative DMI above the positive DMI and ADX near 26, suggesting that the prevailing downtrend still has reasonable strength.

Options outlook

Options data for the 28 July expiry indicates strong call writing at the 180 strike, marking this zone as resistance. On the downside, the put activity at 170 suggests a support base. Meanwhile, with an at-the-money (ATM) strike at 172.5 and a combined premium of ₹10.1, the options market is pricing in a move of roughly ±5.8% into expiry. Let’s now look at how Wipro has reacted to its earnings over the past few years.

Options strategy and approach

With the options market implying a move of ±5.8%, traders can look to capitalise on volatility through straddle strategies.

For example, a Long Straddle involves buying both an at-the-money (ATM) call and put option of the same strike and expiry, positioning for a move beyond the expected range (±5.8%) on either side.

On the other hand, a Short Straddle involves selling both the ATM call and put. This is suited for scenarios where the stock is expected to remain within the implied range (±5.8%) post-earnings, allowing traders to benefit from a decline in volatility.

Disclaimer:

Derivatives trading must be done only by traders who fully understand the risks associated with them and strictly apply risk mechanisms like stop-losses. We do not recommend any particular stock, securities, or trading strategies. The securities quoted are exemplary and not recommendatory. The stock names mentioned in this article are purely to show how to do an analysis.