Q2 2026 Wipro Ltd Earnings Call

Ladies and gentlemen, good day and welcome to the Wipro Limited Q2 FY26 earnings conference call.

As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the conference call, please signal an operator by pressing star and zero on your touchtone phone.

Please note that this conference is being recorded.

I now hand the conference over to Mr. Abishek, Jen vice president, corporate Treasurer and head of investor relations. Thank you and over to you.

Abhishek Jain: Yes, thank you, Yashasrini. Warm welcome to our Q2 FY26 earnings call. We will begin the call with the business highlights and overview by Srinivas Pallia, our Chief Executive Officer and Managing Director, followed by updates on the financial overview by our CFO, Aparna Iyer. We also have CHRO, Saurabh Govil, and our Chief Strategist and Technology Officer, Harish Shetty, on this call. Afterwards, the operator will open the bridge for Q&A with our management team. Before Shrini starts, let me draw your attention to the fact that during this call, we may make certain forward-looking statements within the meaning of Private Securities Litigation Reform Act, 1995. These statements are based on management's current expectation and are associated with uncertainties and risk, which may cause the actual results to differ materially from those expected. The uncertainties and risk factors are explained in our detailed filings with the SEC.

Yeah, thank you. Yes, sir, warm welcome to our Q2 2026 earnings call. We will begin the call with the business highlights and overview by Universal, our Chief Executive Officer and Managing Director, followed by updates on the financial overview by our CFO.

Sort of go and our chief strategist and Technology officer Hari on this call.

Afterwards, the operator will open the bridge for Q&A with our management team.

Before she starts, let me draw your attention to the fact that during this call, we may make certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

These statements are based on Management's current expectation and are associated with uncertainties and risk. Which may cause the actual results to differ materially from those expected.

Abhishek Jain: Wipro does not undertake any obligation to update the forward-looking statements to reflect events and circumstances after the date of filing. The conference call will be archived, and a transcript will be available on our website. With that, I would like to turn over the call to Shrini. Shrini, over to you.

To the date of filing.

Srinivas Pallia: Thanks, Abhishek. Good evening, and thank you all for joining us today. In Q2, our IT services revenue stood at $2.6 billion, with sequential growth of 0.3% in constant currency. Our adjusted operating margin for the quarter was 17.2%. This is within the narrow band we had previously indicated, and it's an improvement of 0.4% compared to the same period last year. Let me now walk you through some of the highlights and key moments for this quarter. Within our markets, three of the four SMUs reported sequential growth. Americas One delivered sequential and year-on-year growth, driven by strong performance in healthcare, technology, and communication sectors. Americas Two saw a decline this quarter. However, we remain confident about future growth in this region, as some of the deals we won in the first half are now beginning to ramp up.

The conference call will be archived, and a transcript will be available on our website. With that, I would like to turn the call over to Shiny. Thanks, Abby. Shake.

Good evening, and thank you all for joining us today.

in quarter 2, Our IT services Revenue today dollar 2.6 billion

With sequential growth of 3% in constant currency.

Our interested operating margin for the quarter was 17.2%.

This is within the narrow band we had previously indicated.

And it's an improvement of 0.4%.

Compared to the same period last year.

Let me now, walk you through some of the highlights and key moments for this quarter.

Within our markets, 3 of the 4, smous reported sequential growth.

America's ones, delivered sequential and year-on-year. Growth driven by strong performance in healthcare technology and communication sectors.

So, I declined this quarter. However, we remain confident about future growth in this region, as some of the deals we won in the first half are now beginning to ramp up.

Srinivas Pallia: Europe returned to sequential growth in Q2 after several quarters led by BFSI. The Phoenix Group deal is set to start generating revenue from Q3, providing further momentum. Apmea growth was fueled by strong results in India, Australia, and Southeast Asia. Capco grew both sequentially and year-on-year, with momentum coming from newer markets like LATAM and Apmea. Turning to our industry sectors now, we continue to see momentum in BFSI, with clients prioritizing cost optimization, vendor consolidation, legacy modernization, and scaled deployment of agentic AI. Tariff uncertainties continue to impact the consumer, energy, and manufacturing sectors, leading customers to reevaluate their supply chains. In technology and communications, the focus is on accelerating AI adoption and developing industry-specific solutions, with cost optimization remaining central. Healthcare, especially in the U.S., is undergoing structural changes. We are actively supporting clients through this transition, and the sector remains one of our strong performers.

Europe witnessed sequential growth in Q2 after several quarters that were led by BFSI.

The Phoenix deal is set to start generating revenue from Q3, providing further momentum.

Apnea growth was fueled by strong results in India.

Australia and Southeast Asia.

Capital grew both sequentially and year-on-year, with momentum coming from newer markets like Latin America and Apnea.

Turning to our industry sectors now.

We continue to see momentum in bfsi.

With clients prioritizing cost optimization.

Vendor consolidation.

Legacy modernization.

And scale deployment of agentic, AI.

Carrier concert continue to impact the consumer energy and Manufacturing sectors.

Leading customers to re-evaluate their supply chains.

In technology and Communications. The focus is on. Accelerating AI adoption. And developing industry specific Solutions.

With cost optimization remaining Central.

Healthcare, especially in the U.S., is undergoing structural changes.

We are actively supporting clients.

Through this transition.

And the sector remains 1 of our strong performers.

Srinivas Pallia: Coming to deal wins and pipelines, this quarter, we closed $4.7 billion in total contract value and signed 13 large deals. Much of this demand is driven by vendor consolidations, AI-powered transformations, and consulting-led programs, areas where our strategy is truly making an impact. Our order bookings this quarter also include two mega deals, one with a healthcare client and another in BFSI. While a significant portion of these two deals are renewals, they are important for deepening our presence and unlocking future growth in these accounts. We are seeing strong momentum in Europe, and I want to highlight two examples that bring this to life. First, Wipro has formed a strategic multi-year partnership with a leading UK financial company to modernize their business. We are using our Vega AI platform and a new center of excellence to drive this change.

Coming to deal with and Pipelines.

This quarter.

We closed dollar 4.7 billion.

In total contract value.

And signed 13, large deals.

Much of this demand is driven by vendor consolidation.

AI powered transformations.

And Consulting lead programs.

Areas where our strategy is truly making an impact.

Our order bookings this quarter also include two mega deals.

1 with a healthcare client. And another in bfsi

while a significant portion of these 2 deals are renewals

They are important for deepening, our presence and unlocking future growth in these accounts.

We're seeing strong momentum in Europe and I want to highlight 2 examples that bring this to life.

First.

We price from the Strategic multi-year partnership with a leading UK financial company.

To modernize their business.

We are using our Vega AI platform and a new center of excellence to drive this change.

Srinivas Pallia: We are helping improve customer experiences and streamlining back-office operations. We are also bringing advanced AI to business and technology streams like HR, mortgages, financial crime prevention, and of course, IT. This will optimize workflows and support real-time decisions for our client. Above all, it will help become more resilient for the future. In my second example, we are partnering with a leading European distribution and logistics company on a multi-year transformation of their operations and IT. By leveraging our expertise in operating model design, process standardization, and technology modernization, we are helping them move to a unified digital core, making their operations more efficient and unlocking long-term growth with AI and digital tools. Now, I am excited to introduce Wipro Intelligence, our unified suite of AI-powered platforms, solutions, and transformative offerings. With Wipro Intelligence, we are enabling our clients to scale with confidence and lead in an AI-first world.

We are helping improve customer experiences and streamline back office operations.

We are also bringing Advanced AI to Business and Technology streams.

Like HR.

Mortgages.

Financial crime, prevention, and of course it

This will optimize.

Real-time decisions for our client.

Above all.

It will help become more resilient for the future.

In my second example.

We are partnering with the leading European distribution and logistics company.

on a multi-year transformation of their operations and it

by leveraging our expertise in operating model design.

Process standardization and Technology modernization.

We are helping them move to a unified digital core.

Making their operations more efficient.

And unlocking long-term growth with AI and digital tools.

Now.

I am excited.

To introduce Repro intelligence, our unified Suite of AI Port platforms.

Solutions.

And transformative offerings.

With viprow intelligence.

Srinivas Pallia: It strengthens our consulting-led approach, driving innovation and delivering measurable outcomes for our clients. In fact, Wipro Intelligence brings together advanced capabilities across delivery and industry platforms. Our delivery platforms are already accelerating work from software development, infrastructure, and cloud to business process operations. On the industry side, we have reimagined core business processes and developed more than 200 AI agents and platforms spanning multiple sectors. As AI continues to evolve, we are helping clients experiment, adapt, and scale rapidly by working closely with our partners, ventures, and leading research institutions. Wipro Intelligence is about proof, not just promise. We embed productivity gains, assure business outcomes, and build in responsible AI guardrails. Let me share three examples of our solutions. One, AutoCortex for our automotive sector, WealthAI for BFSI, and PayerAI for healthcare.

We are enabling our clients scale with confidence and lead in an AI first world.

It strengthens our consulting lit approach.

Driving Innovation and delivering measurable outcomes for our clients.

In fact, Viprow Intelligence brings together advanced capabilities across delivery and industry platforms.

Our delivery platforms are already accelerating work from software development.

Infrastructure and Cloud to business process operations.

and on the industry side,

we have rematch in court, business processes.

And develop more than 200 AI agents and platforms.

Spanning multiple sectors.

As AI continues to evolve.

We are helping clients experiment, adapt and scale rapidly.

By working closely with our partners, Ventures, and leading research institutions.

Is about proof not just promise.

We embed productivity gains.

A short business outcomes and building responsible EI guardrails.

Let me share free. Examples of our Solutions 1.

Auto cortex for our Automotive sector.

Wealth AI for bfsi.

Srinivas Pallia: Each of them is already making a tangible difference for our clients and also earns strong recommendations from industry analysts. This momentum gives us real confidence for the future. With that, let me move on to our forecast for the next quarter. In Q3, we are projecting sequential IT services revenue growth of -0.5% to +1.5% in constant currency. Our priority remains converting our strong backlog into revenue while maintaining operational discipline to ensure profitable growth. With that, I'll hand it over to Aparna, who will take you through the financials in more detail. Over to you, Aparna.

And payer AI for healthcare.

Each of them is already making a tangible difference for our clients.

And also earns strong recommendations from industry analysts.

This momentum gives us real confidence for the future.

With that.

Let me move on to our forecast for the next quarter.

In quarter 3.

We are projecting sequential IT services, Revenue growth of minus 0.5% to plus 1.5% in constant currency.

Our priority remains converting our strong backlog into revenue.

While maintaining operational discipline to ensure profitable growth.

And with that,

I'll hand it over to a.

Who will take you through the financials in more detail?

Aparna Iyer: Thank you, Shrini. Good evening, everybody. Let me share with you an update on the financial performance for the quarter ended 30th September 2025. After that, we can open up the call for Q&A. Our IT services revenue for Q2 grew 0.3% sequentially in constant currency terms and 0.7% sequentially in reported currency. This is well within our guided range. Revenue declined 2.6% year-on-year in constant currency terms. Our operating margins for Q2 at 16.7% contracted 60 basis points quarter on quarter and 10 basis points year-on-year. Our operating margins were impacted by a one-off charge taken on account of a client bankruptcy event. Adjusted for this, our margins were at 17.2%, which is an expansion of 40 basis points year-on-year and is in a narrow band. Our Q1 margins were at 17.3%.

Go to your partner.

Thank you, Shiny. Good evening, everybody.

Let me share with you an update on the financial performance for the quarter ended September 30, 2025. After that, we can open up the call for Q&A.

All righty! Services revenue for Q2 grew 3% sequentially in constant currency terms and 7% sequentially in reported currency.

This is well within our guided range.

Revenue declined by 2.6% year-on-year, in constant currency.

Our operating margins for Q2 at 16.7% on tracked, 60 basis points, quarter on quarter and 10 basis points year on year.

Operating margins were impacted by a one-off charge related to a client bankruptcy event.

Aparna Iyer: As we invest for growth, we will continue to see pressure on our margins as we make investments, but our endeavor will be to maintain the margins in a narrow band. Let me also give you some color on our strategic market unit performance. All growth numbers that I share will be in constant currency. Americas One sustained its growth momentum, growing 0.5% sequentially and grew 5% on a year-on-year basis. Americas Two declined 2% sequentially and 5% on a year-on-year basis. Europe grew 1.4% sequentially, declined 10.2% on a year-on-year basis. Apmea grew 3.1% sequentially and 2.6% on a year-on-year basis. BFSI grew 2.2% sequentially and declined 4% year-on-year. Healthcare declined 0.2% sequentially and grew 3.9% year-on-year. Consumer declined 1.7% sequentially and 7.4% year-on-year. Technology and communication grew 0.8% sequentially, declining 1.7% year-on-year. EMR declined 1.5% sequentially and 0.5% year-on-year.

Adjusted for this, our margins were at 17.2%, which is an expansion of 40 basis points here on your and is in a narrow band, a quarter 1 margin was at 17.3%, as we invest for growth, we will continue to see pressure on our margins as we make investments.

But I end up maintaining the margins in a narrow band.

All growth numbers that I share will be in constant currency. America's 1

Sustained growth, momentum, growing 0.5% sequentially, and grow 5%, on a year-on-year basis.

America's 2 deck, 2% sequentially and 5% on a year-on-year basis year of group group, 1.4% sequentially declined, 10.2% on a year-on-year basis.

Apnea, grew 3.1% sequentially and 2.6% on a year-on-year basis.

The FSI, grew 2.2% sequentially and decline 4% year on year. Healthcare decline, 0.2% sequentially and growth 3.9% year on year.

Consumer decline, 1.7% sequentially and 7.4% year-on-year.

Aparna Iyer: Capco continues to perform well, growing 3.2% on a year-on-year basis. Let me share some other key financial metrics. Our net income and EPS grew 1% year-on-year in this quarter. Our operating cash flows continue to remain higher than our net income and stood at 104% of net income for Q2. Our gross cash, including investments, was at $6 billion for the quarter. In Q2, our net other income declined 14% year-on-year. Our accounting yield for the average investments held in India was at 7.1%. Our ETR was at 23.8% for Q2 versus 24.6% in the same quarter in the last year. In terms of guidance, to reiterate what Shrini shared, we expect the revenues from our IT services business to be in the range of $2.59 billion to $2.64 billion. This translates to a sequential guidance of -0.5% to +1.5% in constant currency terms.

Technology and communication group 0.8% sequentially declining 1.7% year on year EMR decline 1.5% sequentially and 0.5% year on year Tapco continues to perform well growing 3.2% on a year-on-year basis.

Let me share some other key financial metrics. Our net income and EPS grew 1% year on year in this quarter.

Operating cash flows continue to remain higher than our net income and stood at 104% of net income for Q2. Gross cash, including investments, was at $6 billion for the quarter.

Aparna Iyer: The Harman Digital Transformation Solutions acquisition that we had announced in Q2 is expected to close through the course of the quarter. Our guidance number does not factor any revenues from this acquisition. Thank you. With that, operator, you can open it up for Q&A.

In Q2, our net income and net other income declined 14% year on year. Our accounting yield for the average investment held in India was at 7.1%. Our effective tax rate (ETR) was 23.8% for the quarter, compared to 24.6% in the same quarter last year. In terms of guidance, to reiterate what Dipak Bohra shared, we expect the revenues from our IT services to be in the range of $2.59 billion to $2.64 billion. This translates to a sequential guidance of a decline of 0.5% to an increase of 1.5% in constant currency terms.

The Harman Digital Transformation Solutions acquisitions that we had announced in Q2.

is expected to close through the course of the quarter. Our guidance number does not factor any revenues from this acquisition.

Thank you for that operator. You can open it up for Q&A.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We'll take our first question from the line of Nitin Padmanabhan from Investec. Please go ahead.

Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and 1 on the touchtone telephone

If you wish to remove yourself from the question queue, you may press * and 2.

Participants are requested to use handsets, while asking a question.

Ladies and gentlemen, we will wait for a moment while the question queue assembles.

We'll take our first question from the line of Nitin Padmanaban from Investig. Please go ahead.

Kumar Rakesh: Yeah, hi. Good evening. Thanks for the opportunity. The first is, just wanted your thoughts on the deal to revenue conversion. I think we have had very strong deal wins, large consolidation wins. Do you think your BFSI, considering you had those large consolidation wins, should start flowing through this year itself, those that you closed last quarter? How should we think about how are you thinking about growth as you sort of go forward in the next year? Do you think this alone can sort of continue to sort of help maintain a positive momentum on revenue?

Yeah. Hi. Good evening. Thanks for the opportunity. Um, so the first is, uh, just wanted your thoughts on, uh, the deal to revenue conversion. Uh, so I think we have had very strong deal wins, uh, large consolidation wins. Uh, do you think, uh, your bfsi considering you had those large consolidation? Wins? Should start flowing through? Uh, uh, uh, uh, this year itself. Uh, those that you close last quarter and, uh, how should we think about, uh, how are you thinking about growth as you sort of go forward and next year, do you think this alone can sort of, uh, continue to sort of help maintain a positive momentum on Revenue?

Aparna Iyer: I'll take this one, Nitin. Obviously, we had several large deal wins in the BFSI space. We had one in Q4, which is expected to ramp up in Q3 and is factored as a part of our guidance. We had a few large deals in Q1 in BFSI, all of which have a reasonable element of new in it, and we expect them to kind of ramp up over the next few quarters. This may take about six to eight quarters to fully ramp up on the new. In terms of the large deal win that we had in the BFSI space in Q2, it's largely renewal, right? It is a mix of both renewal, renewal plus expansion, and then net new. The net new deal is likely to ramp up, like I said, in Q3. The ones with expansion will take a few quarters for them to ramp up.

So, I'll take this 1, uh, Nathan. Uh, obviously, we have several large deal wins in the bfsi space. We had 1 in Q4, which is expected to ramp up in, uh, Q3 and is factored as a part of our guidance. We had uh, a few large deals in q1 in bfsi all of which have a reasonable element of new in it and we expect them to kind you know, ramp up over the next few quarters. This may take about 6 to 8 quarters to fully ramped up on the new.

Aparna Iyer: If you look at, like I said, the one that we did in Q2, it is largely renewal. Now, to your other question on BFSI growth, yes, we've grown sequentially. That's the first dot in the plot. We will have to sustain that momentum. We're quite confident Q3 looks positive. From there on, we will have to build on it. Like I said, as the large deals ramp up, that will go up. A lot of the growth was actually led by Europe and Apmea within the BFSI space. We expect Americas to join in in that growth as those large deals pick up.

Uh, you know, to your other question on BFSI growth? Yes, we've grown sequentially. That's the first dot in the plot, and we will have to sustain that momentum. We're quite confident; Q3 looks positive. And from there on, we will have to, uh, build on it. Like I said, as the larger ramp-up occurs, that will contribute a lot to the growth. Um, you know, a lot of the growth was actually led by Europe and Aparna within the BFSI space. We expect America to join that group as those large deals pick up.

Kumar Rakesh: Got it. Got it. Just one last one on margins. I sort of missed the margin work that you sort of provided. How should we broadly think about margins going forward? You think this quarter, the transition costs will start kicking in on a going-forward basis, or we've already had some impact from that? There's some color on margins. How should we think about it?

Aparna Iyer: When we started quarter two, we had alluded to headwinds as some of these large deals start to ramp up. Those headwinds will continue as some of these large deals ramp up and phase. In quarter two, the walk, while we're not quantifying the exact impact, we had two positives. One was certainly the rupee depreciation and the dollar weakness, which was a positive. Second, operationally, too, we have continued to expand in terms of our utilization has improved. Our attrition has come down. We also drove better profitability in our fixed-price programs. All in all, I think operations and forex were positive. Yes, we continue to make certain investments for our growth in terms of these large deals, and that is also a part of our margins. Some of it is there in Q2, and there will be more as some of these large deals continue to ramp up.

Got it, got it. Uh, just 1 last 1 uh on margins. Uh, I sort of missed uh the margin work uh that you sort of provided. Uh but uh how should we broadly think about? Uh, margins, going forward? Uh, do you think uh, this quarter, uh, the transition costs, uh, will start kicking in on a going forward basis or we've already had some impact from that? Uh, there there's some color on margins, how should we think about it? So,

We had alluded to headwinds, as some of these large deals start to ramp up. Those headwinds will continue as some of these large deals ramp up and face into Q2. While we're not quantifying the exact impact, we had two positives. One was certainly the rupee depreciation and the dollar weakness, which was a positive. The second was operating.

Aparna Iyer: Quarter three is also a seasonally weaker quarter in terms of lower working days, etc. That's the headwind we're starting quarter three with. We have several initiatives in place. If you look at it, our utilization has been better. We've also driven better profitability in our fixed-price program. Even our SGNIC, we're continuing to optimize. These three levers will continue. We don't guide for a margin, but our endeavor will be to be in a narrow band of our adjusted operating margins of 17.2%. The notable one-off was the provision for bad and doubtful debt provision that we took in terms of the insolvency, which is 50 basis points. Adjusted for that, our operating margins are 17.2%, which is in a narrow band of Q1 performance.

Ally, too. We have continued to, uh, expand in terms of, uh, utilization has improved. Our aration has come down. Uh, we also drove, uh, better profitability in our fixed price program. All in all, I think operations and Forex were positive. Yes, we continue to make certain investments for our growth in terms of, uh, these large deals, and that is also a part of our margins. Some of it is there in Q2, and uh, there will be more as some of these large deals continue to ramp up.

So quarter 3 is also a seasonally weaker quarter in terms of fur low, lower working days. Etc. That's the headwind. We are starting quarter 3 with. Um, we have, uh, several initiatives in place. Uh, if you look at it, uh, you know, our utilization has been better. We've also driven better profitability in our fixed price, so and even our sgna could be continuing to optimize these 3. Levers will continue.

and uh, uh,

We don't guide for a margin but our Endeavour will be to be in a narrow band, uh, of our adjusted operating margins of 17.2, the notable 1-off. Um, was the provision for Baron doubtful debt, uh, provision that we took in terms of the insolvency, which is 50 basis points. So, I'm just just for that, our operating margin this 17.2, which is in

Narrow band of, uh, Q1 performance.

Kumar Rakesh: Perfect. That's helpful. Thank you so much. I'll fall back in the queue. All the very best.

Aparna Iyer: Thank you, Nitin.

Perfect. That's helpful. Uh, thank you so much. I'll fall back in the queue. All the very best.

Thank you.

Operator: Next question is from the line of Kumar Rakesh from BNP Paribas. Please go ahead.

Next question is from the line of Kumar Rakesh from BNP paraba, please go ahead.

Ravi Menon: Hey, hi. Good evening, ma'am. Thank you for taking my question. My first question was around the growth side. Over the last couple of quarters, we have seen the deal wins to have materially picked up. Total bookings have been touching close to about $5 billion. Your large deals also have been quite high. You also spoke about the Phoenix Group deal will start ramping up in the third quarter. All these momentums are something which is behind us and should be pushing us towards growth. At the midpoint, what we are guiding is only marginal improvement in growth. What exactly is something which we are looking at from the headwind perspective? Last year, during the December quarter, we had reported marginal growth. The furlough shouldn't be so big that it eats into all the incremental tailwind which we have.

Hi, good evening, ma'am.

First question was around the growth side. So, over the last couple of quarters, we have seen the deals materially pick up. Total bookings have been touching close to about $5 billion.

Your last also have been quite high; you also spoke about the Phoenix deal. The deal will start ramping up in the third quarter. So, all these momentum are something which is behind us, as I'm sure we are pushing us towards growth. But at the midpoint, what we are guiding is only marginal improvement in growth. So, what exactly is something which we are looking at from the headwind perspective? Because last year during the December quarter, we had reported marginal growth. So the further should be so big that it eats into all the incremental tailwind which we have.

Aparna Iyer: Rakesh, when we guide, we guide based on the visibility that we have at the start of the quarter. You should look at the midpoint, and then we guide in a range that is both a plus 1.5% on the top end, and we have a minus 0.5% to accommodate volatilities that we could see during the quarter. Yes, there is a ramp-up of the large deal wins, and you are right. That is giving us a positive momentum. If you look at it after several quarters, we have guided where the midpoint is in a positive that we believe is the first step. As we convert more of these large deals into revenues, this momentum should improve.

So, uh, Rakish, when we guide, we guide based on the visibility that we have at the start of the quarter. You know, you should look at the midpoint, and then we guide in a range. There is both a – that's why we have a platform of 1.5% at the top end, and we have a minus 0.5% to accommodate the volatility that we could see during the quarter. Yes, there is a ramp-up.

Of the large deal wins, you are right; that is giving us positive momentum. If you look at it after several...

We have guided.

We believe this is the first step, and as we convert more of these large deals into revenue, this momentum should improve.

Ravi Menon: Thanks, Aparna. My second question was around margins. Today, you spoke about that you would intend to keep the margin in a narrow band around 17.2%. You had earlier also spoken about some of these large deals would be margin dilutive, and there would be some impact of that. How should we tie up these two comments?

My second question was around margin so on today, you spoke about that. You would intend to keep the margin in a narrow band around 17.2%. And you had earlier also spoken about some of these large deals, uh would be margin dilutive and there would be some impact of that. So how should we tie up these 2 comments?

Aparna Iyer: Yeah, you know, like I said, we don't guide for a range on the margin, right? Our endeavor has to be to keep it in the band of 17 to 17.5% that we had earlier alluded to. Obviously, if you look at it in terms of the investments for growth, there will be, organically, we will continue to win some of these large deal wins. There is a vendor consolidation-led pipeline, which are quite intensely fought, right? One is also looking to be on the right side of some of those deal wins, which will also come with pressure on margins at least as they start, right? Over a period of time, as we realize the productivity that we have offered to our clients and that starts to kick in, the margins then tend to improve.

We don't guide for a range on a margin, right? Our end of our has to be to keep it in the band of 17 to 17 and a half that we had earlier alluded to. Uh, obviously if you look at it, in terms of the Investments for growth, uh, there will be organically, we will continue to win some of these large deals. Uh, it's, you know, the areas uh, when the consolidation LED pipeline which are quite intently fought, right? So 1 is also looking to be on the right side of some of those deals which will also come with pressure uh, on margins, at least as they start, right?

Aparna Iyer: We are driving several other initiatives to offset some of these investments that we are making. I also want you to note that the Harman Digital Transformation Solutions acquisition is not a part of these numbers. When that comes, that will also be an investment that we will be making for our growth. That will come with a 60 basis points dilution that we have already spoken of at the point of announcing the acquisition. These are things that we are, these are the headwinds we have to the margins. We have initiatives in play that we will use to offset some of these pressures. That's why we're saying at least for Q3, we are holding it in a narrow band, and then we will see from there how we take those margins.

Um, but uh, over a period of time as we, uh, realize the productivity that we have, uh, offered to our clients and that starts to kick in the margins then tend to improve. Uh, we are driving uh, several other initiatives to offset uh, some of these Investments that we are making. I also want you to note that uh, the harman DTS acquisition is not a part of the reason.

When that come, that will also be an investment that we will be making for our growth. Uh, and that will come with a 60 basis points. Uh, dilution that we have already uh, spoken of at the point of announcing the acquisition. These are things that we are. These are the headwinds we have to the margins.

We have initiatives in play that we will use to offset some of these pressures. And that's why we're saying, at least for Q3, we are holding it in anarrow band, and then we will see it from there. From there, we will determine how we take those margins.

Kumar Rakesh: Got it. Thanks a lot, Aparna.

Got it. Thanks a lot.

Operator: Thank you. We'll take our next question from the line of Ravi Menon from Macquarie. Please go ahead.

Thank you.

Ravi Menon: Hi, thank you for the opportunity. I want to check, you are now growing year on year on an organic basis in line with the peers. Do you think this can sustain or can you even improve from here?

We'll take our next question from the line of Ravi. Penan from McQuarrie, please go ahead.

Hi, thank you for the opportunity. Uh,

I want to check in. You are now, uh, growing year on year from an organic basis in line with your peers. Uh, do you think this can sustain, uh, or can even improve from here?

uh,

Aparna Iyer: Ravi, can you repeat your question?

Kumar Rakesh: I was saying that you know now you're growing year on year basis. You're actually growing in line with the peer group on an organic basis. Do you think that can sustain or can you even improve beyond that?

Aparna Iyer: Yep.

Uh, you know, I was saying that now you're growing, you're on your basis. You're actually growing in line with the peer group on an organic basis. So, do you think that can sustain, or can you even improve beyond that?

Operator: Shrini, you want to take it?

Srinivas Pallia: Good.

Operator: Okay.

Shiny, you want to take it?

Srinivas Pallia: As far as we are concerned at this point in time, we're giving a Q3 guidance like Aparna Iyer talked about. The midpoint is positive. The second point is some of the deals that we have won in the first half, some of them we'll have to start executing, and each of them have their own rhythm in terms of when the ramp-ups will happen. It varies from client to client. Our focus right now is to execute some of the deal wins that we have. We have a very robust pipeline into the second half. Our focus is to convert those deals into bookings, which will again translate to revenues going into the future. From that perspective, the main focus for us is to execute both in terms of the deal wins and also win the deals.

Okay.

Kumar Rakesh: Thanks, Shrini. Going into Q3, you know, other than seasonality, are there any specific factors that you think are headwinds to revenue?

So so Robbie shini here. As far as we are concerned. At this point in time, we're given a quarter 3 guidelines. Like aana talked about the midpoint is positive. Uh, second point is some of the deals that we have won on the first half. Some of them will have to start executing and each of them have their own, uh, rhythm in terms of the ram, when the ramp UPS will happen, it varies from client to client our Focus right now is to execute some of the deal wins that we have. And also we have a very robust pipeline into second half. Our focus is to convert those deals uh, into bookings, which will again translate to revenues going into the future. So from that perspective, um, Rye the you know, main focus for us to is to execute both in terms of the deal win and also win the deals.

Thanks, really, uh, and going into Q3, uh, you know, other than seasonality, are there, uh, any specific, uh, factors that you think are headwinds to revenue?

Aparna Iyer: No, not really.

Kumar Rakesh: All right. Thanks so much. Best of luck.

No, not really.

Operator: Thank you.

All right, thanks so much. Best of luck.

Aparna Iyer: Thank you.

Operator: We'll take our next question from the line of Subir Gundapalli from Kotak Mahindra AMC. Please go ahead.

Thank you. Thank you.

Kumar Rakesh: Hi, Shrini. Hi, Aparna. I just wanted some clarity on your response to one of the earlier questions that you said a large part of it is renewal. Are you talking about any specific large deal within BFSI, or are you talking about the overall deal wins that we had this quarter?

Take the next question from Sudhir Kupaly from Kotak Mahindra, AMC. Please go ahead.

Uh, hi, Shiny. Hi. Uh, so I just wanted some clarity on, uh, your response to one of the earlier questions. Uh, that you said a large part of it is renewal. So, are you talking about any specific large deal within BFSA? Or are you talking about the overall deal wins, uh, that we had this quarter?

Srinivas Pallia: As far as the Q2 deal wins are concerned, the two mega deals that I talked about, one is in the healthcare sector, the other one is in the BFSI sector. Subir, I hope that clarifies.

So, so, so, so there as far as, uh, quarter 2 deal wins are concerned, the two mega deals that I talked about: one is in the healthcare sector, and the other one is in the BFSI sector. So, I hope that clarifies.

Kumar Rakesh: Yeah, Shrini, that's fine. I was asking Aparna's response to a prior question that it is largely a renewal. You were referring specifically to the BFSI deal, right? You are not characterizing the overall deal wins that you had this quarter. What I'm trying to understand is if you look at the deal wins this quarter, again, for the second consecutive quarter, it was very strong. I wanted to understand what is the mix of renewal and new within the overall space, not specific to that particular deal.

Srinivas Pallia: Yeah. Sure. I think if you look at the kind of deal flows we had in the first half, it's a combination of the three types of deals. One is, like you rightly called out, there are renewals where you actually get to work in those accounts and find opportunities to bring in growth. The second are renewals with extension of the pipeline, wherein the extensions, like Aparna Iyer talked about, will take its time in the next six to eight months. The third piece is net new deals that we have, which we will execute immediately. The two deals that I called out in Europe are the net new deals, Subir.

Apartment response to a prior question that, uh, it is largely a renewal. Uh, so you were referring specifically to the BFSI deal, right? Not you're not characterizing the overall, uh, uh, deals that you had this quarter. So this, but what I'm trying to understand is if you look at the, uh, deal wins this quarter, again, for the second consecutive quarter, it was very strong. Uh, so I wanted to understand what is the mix of, uh, renewal and new within the overall space, not specific to that particular deal.

Yeah, sure. So there I think if you look at the kind of deal flows, we have in the first half, it's the combination of the 3 types of deals 1 is uh like you rightly called out there are renewals where you actually get to work in those accounts and, you know, find an opportunity to bring in growth. Second are renewals with extensions of uh uh the the pipeline wherein the the extensions like upper not talked about or will take its time in the next 6 to 8 months. Uh and the third piece is net new deals that we have, which we will, uh, you know, execute immediately and the 2 deals that I called out uh in Europe are the net, net new deals, so there.

Kumar Rakesh: Okay, sir. Fair enough. Thank you.

Uh, okay, sir. Uh, fair enough, thank you.

Operator: Thank you. Next question is from the line of Sandeep Shah from Equirus Securities. Please go ahead.

Thank you.

Sandeep Shah: Yeah, my question's been answered. Thanks. Hello? Yashashri, you will have to move to the next participant.

Next question is from the line of Sep Sha from Aura Security. Please go ahead.

Yeah, my question is being answered. Thanks.

Hello.

Operator: Thank you. The next question is from the line of Dipesh Mehta from MK Global. Please go ahead.

You will have to move to the next uh, participant. Thank you.

Vibhor Singhal: Yeah, thanks for the opportunity. Two questions. First, just want to understand whether from net new person perspective, are we seeing any change compared to, let's say, past trend in H1? Because we have very strong deal booking. Any change in terms of net new person, if you can give some qualitative sense, if not possible, give quantitative sense, but qualitatively, if you can give some sense. Second question is whether we are witnessing any delay in this deal ramp-up. What we have seen in the last six months, whether those deals are ramping up as scheduled or we are witnessing some challenges there. Second question is about we earlier faced some client-specific challenges, particularly in Europe BFSI.

Uh, the next question is from the line of the page meta from MK Global, please go ahead.

yeah, thanks for the

Opportunity. Uh, two questions. First, I just want to understand whether from a net new person perspective.

Are we seeing any change compared to, let's say, fast train or in H1? Because we are very strong, uh, deal booking. So, any change in terms of net new person? If you can give some qualitative sense, if not possible, give quantitative sense. But qualitatively, if you can do something.

Uh, second question is whether we are witnessing any delay in this deal, what we have signed in last 6 months whether those deal ramping up page schedule, or we are witnessing some uh challenges there.

Vibhor Singhal: As we speak, are we seeing, let's say, most of those client-specific challenges are behind and we can see normal trajectory of growth based on the deal intake and pipeline entering into H2? Last question is about the vertical. If I look, let's say, even Q2, the way we report our vertical mids, three out of five still showing sequential decline. By when you expect relatively more broad-based growth, considering very strong deal intake, what we observed in H1, if you can provide some color there. Thanks.

Uh, the second question is about, we earlier paid some client-specific challenges, particularly in Europe before time.

As we speak, are we seeing? Let's say most of those client-specific changes are behind, and we can see a normal trajectory of growth based on the deal in tech and pipeline.

Entering into H2.

And last question is about the vertical. If I look, let's say even, uh, Q2.

The way we report our vertical meets 3 out of 5 still showing sequential decline.

Aparna Iyer: Yeah. I'll take a few questions, and then, Shrini, you can also add in. From a net new standpoint, we had in our last deal bookings for the first half, is it better or worse compared to the past? I would say for the first half, our net new bookings have been fairly good. If you look at quarter two, we had two net new deals, six renewals, and the others are a combination of renewal plus expansion, right? In terms of whether the deals are ramping up on time and whether we are seeing any delay, I don't think there's any delay in the ramp-ups. They're pretty much right now on course to ramp up as planned. There is no delay or deferral or challenges that we are facing on that.

So, by when do you expect relatively more broad wage growth, considering very strong deal intake, what we observed in H1? If you can provide some color there, thanks.

Yeah, so I'll I'll take a few questions. And then shiny, you can also add in uh, from a net new standpoint. We had uh in our last deal booking for the first half, is it better or worse? Compared to the past? I would say for the first half on net, new bookings have been fairly good. Uh, if you look at quarter 2, we had 2 net, New Deals 6, reneau and the others are a combination of renewal plus expansion, right? Um,

In terms of whether these deals are ramping up on time and whether we are seeing any delays,

Uh, I’m not, I don’t think we... Uh, there is any delay in the ramp-up. They are pretty much right now on.

Aparna Iyer: In terms of Europe, whether the client-specific issue is behind us, yes, you know, in some sense, the client-specific issue that we had called out earlier is behind us. You should see the trajectory of Europe to continue to improve. We will obviously have to sustain the win momentum that we've had in the last two to three quarters, even into the next few. As you know, we continue to operate in a very competitive environment, which means that you know we have to be on the right side of all the vendor consolidation deals for us to be able to sustain that momentum. That's what I would like to call out, Manik.

Srinivas Pallia: Dipesh, in the context of the sector questions that you asked for, if I look at it, of the five sectors that we have, I think where we see the impact of tariff is mostly on the consumer and energy manufacturing sectors. These are the two sectors which have regrown sequentially as well as on the year-on-year basis. For us, what we are looking for in these two sectors are what kind of deals that we can play proactively with the clients, especially because of the challenges that they're facing. On the cost side, they're also facing challenges on the supply chain side, and we are having conversations with them. Otherwise, the other three sectors, you know, I think Dipesh, we're looking good.

So the pressure, in the context of the sector questions that you asked for, if I look at it, of the five sectors that we have, I think where we see the impact of tariffs is mostly on the consumer and energy manufacturing sectors. These are the two sectors which have DEH sequentially, as well as on a year-on-year basis.

Now for us uh uh what we are looking for in these 2 sectors? Uh, are you know what? Kind of deals that we can play proactively with the clients especially because of the challenges that they're facing on the cost side. They're also facing challenges on the uh supply chain side. And we are having conversations with them, otherwise, the other 3 sectors, you know, I think depression, you know we're looking good.

Kumar Rakesh: Understood. Thank you.

Operator: Thank you. We'll take our next question from the line of Girish Pai from POB Capital Markets. Please go ahead.

Understand, thank you.

Thank you.

Abhishek Kumar: Yeah, thanks for the opportunity. I had a few questions. Just on the renewal deal side, are the clients asking for a greater level of savings now compared to the past when such renewals happened, considering that we are using AI? What are they doing with the savings, if at all they're getting them? Are they kind of plowing that back into new work, and are you getting that work?

We'll take the next question from the line of Girish Pai for Pob Capital Markets. Please go ahead.

Yeah, uh, thanks for the opportunity. Uh, had a few questions, uh, just on the renewal deal side, uh, are the clients asking for greater level of savings now, compared to the past when such renewals happened, uh, considering that you you're using Ai. And what are they doing with the savings? If at all, they're getting the them, are they kind of plowing that back into new work? And are you getting the that work?

Srinivas Pallia: Girish, if you look at the broader industry trend that we are seeing, clients across industry segments and across the markets that we are in are clearly looking for cost optimization, and that is also driving to some extent vendor consolidation. As far as the cost optimization is concerned, clearly the clients are looking at aspects of, in addition to cost, speed, and also the efficiency through AI. We see that as an opportunity for us. If you look at the way we see the opportunities, they are on, of course, the run and operate side, which includes your application support and maintenance, infrastructure, and business process services, where we infuse AI, helping the client bring in efficiency, productivity, and velocity. The second part is build and transform, which is our software development lifecycle, product development lifecycle, package implementation.

so Girish, if you look at, you know, broader industry Trend that we are seeing riches,

Clients across uh, industry segments and across the markets that we we are in are clearly looking for cost optimization and that is also driving uh to some extent uh uh vendor consolidation.

As far as the cost optimization are concerned, uh, clearly the client are looking at, uh, uh, you know, aspects of in addition to cost speed and also the efficiency through Ai. And we see that as an opportunity for us. And if you look at the way we see, uh, the opportunities are and of course on the run and operate side, which includes your application support and maintenance infrastructure and uh business process Services where we Infuse the I helping the client bring in efficiency productivity velocity.

Srinivas Pallia: Here, there are multiple tools that are available, and we are using our Wipro Intelligence Vega AI platform to actually bring in those productivity benefits for our clients. As far as the run and operate, we are using Winx as a platform to bring the productivity and efficiency. Wherever the clients are able to get this efficiency and productivity, they're actually investing, especially around the business innovation, leveraging AI and all the aspects of AI advisory, data architecture, and also the platforms, some of the platforms that we have built, and also solutions that are industry-specific platforms and solutions that we have built are also creating a positive impact for us with the clients. Just to name AutoCortex in automotive, PayerAI in healthcare, WealthAI in BFSI. In fact, some of these we have already started implementing for the clients, and clients are seeing the benefits.

Uh, the second part is, uh, build and transform, which is, uh, our software development life cycle product development life, cycle package implementation here. There are multiple tools that are available and we are using our, uh, Viper intelligence wake up platform. Uh, to actually bringing those productivity benefits for our clients and, uh, as far as the run and operate, we are using wings as a platform, uh, to bring the productivity and efficiency. Now, wherever the clients are able to get this, uh, efficiency in productive.

Srinivas Pallia: We also have some of the industry analysts talking about these industry-specific AI solutions as well, Girish. It's a combination of all this that we see as an opportunity for us.

Kumar Rakesh: Okay. My second question is regarding potential liabilities that vendors like you face because of AI work that leads to hallucinations, and you know there could be some damages that clients may probably have to bear. There seems to be quite a few cybersecurity incidents that have happened with certain clients and certain vendors, Indian vendors. How do you ensure that you don't get hit by any of these? I mean, do you have watertight contracts where you don't bear any costs attached to these hallucinations because of any AI contracts that you're executing or cybersecurity contracts that you're executing?

They're actually investing a new special on the business, Innovation leveraging Ai. And also the aspects of uh EI advisory data architecture and all the platforms. Some of the platforms that we have built, you know, and also solutions that industry specific platforms and solutions that we have built is also, you know creating a positive impact for us with the clients uh just to name Auto cortex and Finn in automotive uh pair in pair AI in healthcare wealth a and bfsi. In fact, some of these, we have already started implementing for the clients and clients are seeing the benefits. We also have some of the industry analysts talking about these uh, industry specific uh, AI Solutions as well Girish. So it's, it's a, it's a combination of, uh, you know, all this that we see, uh, you know, as an opportunity for us.

Okay. Uh, my second question is regarding potential liabilities that vendors like you face because of...

AI work that leads to hallucinations and you know, there could be uh, some some damages that clients May probably have to bear. And uh there seems to be quite a few cyber security incidents. That have happened with certain clients in certain vendors in the vendors. So how do you ensure that you don't get hit by any of these? I mean you have a volatile contracts where uh you don't pay any costs attached.

This.

The hallucinations because of any AI contracts that you're executing or cybersecurity contracts that you're executing.

Srinivas Pallia: Girish, this is Harish Shetty here, glad to be on the call today. A couple of key things, you bring up a very valid point in terms of your question. One of our strengths in terms of our Wipro Intelligence platform is the responsible AI guardrails that we have actually built into the platform. It is probably one of the best implementations of how AI can be responsibly implemented, and that is what actually differentiates us from a Wipro Intelligence perspective. These capabilities go into both of the platforms that Shrini talked about, whether it is Vega or Winx, and that gives us the confidence that we can actually deliver the promise of what we are talking about from an AI perspective, as well as make sure some of the guardrails that you talked about are taken care of.

This is Harish Shetty here, and I'm glad to be on the call today.

Is the responsibility I got rails that we have actually built into the platform.

Srinivas Pallia: Some of this will also translate into contractual commitments on both sides. From a risk management perspective, we take care of those controls as well.

And uh, uh probably, uh, 1 of the best implementations of how AI can be responsibly implemented. And that is what actually differentiates us from a with Pro intelligence perspective and these capabilities go into both of the platforms that shiny talked about whether it is Vega or wings and that uses the confidence that we can actually, you know, deliver the promise of what we are talking about from an AI perspective, as well as make sure some of the Guardians that you have talked about are taking care of. Obviously, some of these will also translate into contractual commitments on both sides, you know. And again, from a risk management perspective, we take care of those those controls as well.

Kumar Rakesh: Okay. Just last question on H1B. I know probably it's been beaten to death. Do you foresee any higher pressures on subcontractor costs or on-site utilization going down because you need to maintain an on-site bench now because you can't bring in as many H1B workers, H1B employees from India as you used to, especially if wages go up in the sense that they're talking about moving away from a lottery system? How do you kind of foresee that?

Okay, uh, just one last question on H-1B. I know, uh, copies have been beaten to that, uh.

Do you foresee any, uh, higher pressures and subcontracted costs or on-site utilization going down because you need to maintain, uh, on-site bench now because uh, you can't bring in uh, as many H1B workers H1B employees from India, uh, as you used to uh, especially if if they just go up in the sense that they're talking about, uh, moving away from a locking system. So how do you kind of foresee that?

Vibhor Singhal: As you know, a large part of our workforce in the U.S. is localized. First of all, we don't see a supply issue from an H1B perspective. More than 80% of people are localized, and we are looking at 250-odd H1Bs in the past five years. We have been progressively reducing our dependence on H1Bs. Either on subcontractors or otherwise, we don't see an impact. We have been building our centers in the U.S., and we'll continue to grow with them based on the demand scenario.

Here.

As you know, the last part of our workforce in the U.S. is localized.

Uh, so first of all, we don't see a...

apply issue from an H1B perspective.

More than 80% of people are localized, and we are looking at 250 odd H1Bs in the past five years. We have been progressively reducing our dependence on H1Bs, either on subcontractors or on.

Otherwise, we don't see it impact. We have been building our centers in the US and we'll continue to grow with them based on the demand scenario.

Kumar Rakesh: Thank you.

Thank.

Operator: Thank you. We'll take our next question from the line of Vibhor Singhal from Nuvama Equities. Please go ahead.

Thank, thank you.

Vibhor Singhal: Yeah, hi. Thanks for taking my question, and congrats on continuous solid deal wins. Shrini, my question was regarding the BFSI segment. You mentioned that amongst the five verticals, manufacturing and retail will continue to strongly face challenges. In the BFSI vertical, we have a very interesting mix in which Capco continues to do well. We have the Phoenix Group deal ramped up maybe next quarter. At the same time, we were facing challenges in Europe and BFSI. Putting all this together, how do you see the BFSI sector playing out for us over the next, let's say, two to three quarters?

We'll take a next question from the line of vevor single from theama. Please go ahead.

Yeah. Hi, uh, thanks for taking my question. Uh, and congrats on your continuous, uh, solid decisions. Uh, actually my question was, uh, regarding the DSi signal. Uh, you mentioned that amongst the five articles, manufacturing and details will continue to communicate challenges. But in the BFSI vertical, we have a very interesting mix in which capital continues to do well. We have the Felix field example of maybe an exporter, but at the same time, we are facing challenges in Europe and BFSI. So putting all this together, how do you see the BFSI sector playing out for us over the next, uh, let's say, two to three quarters?

Srinivas Pallia: Sure, Vibhor. Maybe I will answer this in a.

Operator: I'm sorry, sir.

Srinivas Pallia: Sure, Vibhor. Maybe I'll answer this question in a little bit more detail if that's okay with you.

Operator: Please.

Srinivas Pallia: If you look at our BFSI sector, we reported a sequential growth of 2%. Also, by absorbing near-term impact taken for the mega deals that we signed in Q1. That's number one. Second is the growth for us in BFSI, like I said, was led by Europe and Apmea. In both these SMUs, if you noticed, have reported high single-digit sequential growth. Also, in the BFSI segment, the order booking continues to be robust. I don't think the point I made to Girish and Dipesh in terms of the kind of deals that we have, the clients are obviously rebalancing. Also, in the BFSI sector, the clients are modernizing a lot of their core in addition to vendor consolidation and efficiencies provided through AI. If you look at Capco, Vibhor, we saw Capco demonstrating both sequential and year-on-year growth for us, which Aparna talked about.

I'm sorry. Yeah, sorry, yeah. Sorry about, um, maybe I lost this question a little bit more detail if that's okay with you. If you look at our BFS side sector, we reported sequential growth of 2%. Also, you know, by absorbing near-term impact taken for the Mega deals that we signed in quarter 1, that's number 1. Second is, uh, the growth for us in bfsi, like I said, is in, was led by Europe and apnea, uh, and uh, the both these smous, you know, if you noticed have reported High, single digit, sequential growth also in the PFS size segment, the order booking continues to be robust.

And I know, you know, the point I made to uh, Girish and the page in terms of uh, the the kind of deals that we have. You know, the clients are obviously rebalancing and also in the bfsa sector, the clients are modernizing a lot of their core in addition to vendor consolidation and uh efficiency is provided through AI.

Srinivas Pallia: Now, if you look at it from a specifically, if I have to double-click on BFSI, banking and payments continues to be our large domains. Also, the capital markets, some of our global top accounts and anchor accounts, they're showing positive growth. The most important is, I know I talked about the platforms, industry platforms, the wealth and asset management, which is really getting traction for us. We are also in this segment. There's a lot of conversations around how we can advise our clients on the AI side. That's something that we are helping the customers.

And also, you know, if you look at Capco, um, Weber and all, we saw Capco, you know, demonstrating both sequential and year-on-year growth for us, which Aparna Iyer not talked about.

So now, if you look at in the from a specifically, if I have to double click on WSI, Banking and payments uh continues to be a large domains, uh, also the capital markets, you know, right? You know, some of our Global top accounts and anchor accounts, they, they they're showing positive growth. And the, the most important is, I know, I talked about, uh, the platforms industry platforms, the wealth and asset management, you know, which is really, uh, you know, getting attraction for us. We are also in this segment as a lot of conversations around, uh, how we can advise our clients on the AI side. You know that's something that uh, we are helping the customers.

Vibhor Singhal: Right. A lot of, I would say, traction that we are seeing in multiple parts. Capco, as you said, should produce because overall, as the outlook for the sector, we are looking at a good, decent run in the coming quarters as well. Would that be a good summary to say?

Right. So, a lot of, I would say, an interaction that we are seeing in multiple paths at Capco. As you said, overall, I was the outlook for the quarter. They're looking at a good, decent 1 in the coming quarters as well.

Srinivas Pallia: Yeah, Vibhor, if you look at my pipeline, right? Obviously, BFSI's pipeline is very strong. From that perspective, I would say the positive momentum that we see in BFSI. Also, like Aparna talked about, the Phoenix deal will start executing from this quarter onwards. Next step, I agree with the point you made, Vibhor. BFSI continues, we see in a positive light.

Yeah, look at my pipeline, right? You know, obviously, the BFSI pipeline is very strong. So from that perspective, I would say, you know, the positive momentum that we see in BFSI also—like, uh, upon not talked about—the Phoenix Steel will start executing from this quarter onwards. So next, you know,

Vibhor Singhal: Perfect. Perfect. That's great to hear. Just to double-click on the same manner in there on the healthcare sector, I know not as large as BFSI, but a lot of our peers have been talking about challenging the healthcare sector because of the big beautiful bill that was introduced by the Trump administration. Any color on that? How do we see this vertical playing out over the next two to three quarters?

I agree with the point you made about BFSI continuing. We see, you know, in a positive light.

Perfect. Perfect, perfect. That's great to hear. Just to double click on the same manner in there on the healthcare sector. Uh I know not as large as bfsi but a lot of our peers have been talking about challenging, the health care sector because of the big beautiful cells that was introduced by the Trump by the Trump Administration. So uh uh any color on that, how do we see this vertical playing out over the next 2 to 3 quarters?

Srinivas Pallia: Yeah. Vibhor, if you look at that, traditionally, healthcare has been a strong sector for us. Even in the last quarter, we did show a year-on-year growth. You're right, there are some certain headwinds in this sector because the sector is going through structural changes. Number one, the good news is that one of the mega deals that I talked about is from this sector. Second, if you look at the companies, they are adapting to the whole policy changes that are happening. I think that will drive more cost takeouts, more modernization, and so on and so forth for our clients. Also, if you look at the healthcare companies, specifically payers, they're also trying to accelerate and transform their contact centers so that they can improve their conversations with the members. That's another thing that we see as a traction for us.

Yeah, so before, if you look at the traditionally Healthcare has been a strong sector for us and even the last 4 we did show a year on your growth, but, you know, you're right, there are some certain headwinds in this sector because the sector is going through structural changes.

Uh, so number one, the good news is that one of the mega deals that I talked about is from this sector. Uh, second, if you look at.

Srinivas Pallia: A couple of areas like some of our clients are looking for real-time claim processing, for example, or trying to look at how can we bring in more efficiency in pre-authorization. How do we bring in more enhanced transparency in the context of the structural change? All these are opportunities for us. I think we continue to be strategic technology partners for some of the tier-one healthcare payers. I think we continue to stay focused on that.

The companies, you know, they are adapting to the whole policy changes uh, that are happening and uh, I think you know that will drive more cost, takeouts more modernization and so on, so forth for our clients, second. Also, you know, if you look at the healthcare companies, specifically payers, you know, they're also trying to accelerate and transform their contact centers so that they can improve their, uh, conversations with the members. And that's another. Another thing that, you know, we see as attraction for us and, uh, and also, you know, couple of areas like, uh, you know, some of the our clients are looking for Real Time, claim processing, for example, or you know, trying to look at. How can we bring in more efficiency in a pre-authorization? You know, how do we bring in more enhanced? Transparency right in the context of the structural change. So all these are opportunities for us. Um and I think we continue to be strategic technology partners for uh some of some of the Tier 1 health.

Vibhor Singhal: Got it. Great to hear. Just one last question, if I may squeeze in, either you or maybe Aparna can answer. On the headcount, we saw a decent addition in the headcount in this quarter. What is the kind of outlook that we're looking for in terms of headcount addition over the next, let's say, two to three quarters? With the deal ramp-up and all, do we see this number maybe inching up a bit, or do you think it might stabilize around the current levels?

Care prepares, and, uh, I think we continue to stay focused on that.

Got it, got it. Great to hear. I just 1 last question. If I may squeeze in, either you and or maybe a partner can answer on the head count, we saw decent addition in the head counts as this quarter. What is the kind of Outlook that we're looking for in terms of accommodation over the next? Let's say, 2 to 3 quarters with a deal ramp up and all, do we see this number, maybe inching up a bit, or do you think it might stabilize around the current levels?

Srinivas Pallia: If you look at the key people industry in this quarter, net headcount has gone up, onboarded freshers from college, attrition has come, utilization has gone up. Based on the demand, which is very high, very strong bookings in Q1, I think that depending on the, as we convert to revenue, we'll continue to hire both laterally and from campus.

So if I look at the, if you look at the key people in decision in this quarter,

Uh, net count has gone up.

Onboarded freshers from college. Okay, nutrition has come and gone up.

And based on the demand, which is a high, very, very strong booking in queue for H1.

I think depending on the revenue, we'll continue to hire both laterally as a refund camper.

Vibhor Singhal: Got it. Got it. Thanks, Srini. Thank you so much for taking my questions, and I wish you all the best.

Operator: Thank you. Next question is from the line of Abhishek Kumar from JM Financial. Please go ahead.

Got it, got it. Thanks Genie. Thank you so much for taking my questions and I wish you all the best.

Thank you.

Abhishek Kumar: Yeah, hi. Good evening. Thanks for the opportunity. I have two questions. First, on, we talked about three kinds of deal wins, right? You know, net new, scope expansion, and just plain renewal. So net new, we understand, will add to incremental revenue. In the other two types of deals, are we seeing overall book of business for those deals growing, especially in renewal and also in renewal plus scope expansion? Or, you know, the deflation which is there in renewal is kind of offsetting the new scope that we are getting from those deals? Any color on that, please.

Next question is from the line of abishek. Kumar, from JM Financial, please go ahead.

Yeah, hi. Good evening. Um, thanks for the opportunity. I have 2 questions first, uh, on. Uh, so we, we talked about 3 kind of deals, right? Uh, you know, net new, uh, scope expansion and just plain renewal, so net new. We understand we'll add to incremental Revenue in the other 2. Um, uh, types of deals. Uh, are we seeing overall book of business for those deals growing specially in renewal and also, in renewal plus scope expansion, uh, or, uh, you know, the deflation, uh, which is there in renewal is kind of offsetting the new scope, uh, that we are getting from those groups, any color on that, please.

Aparna Iyer: Yeah, you know, you are right. Net new is fully new. That will add to the revenues directly. In terms of just renewal, is there a deflationary pressure? Like I said, every deal, every time there is a productive renewal, there is a productivity that gets passed on. We typically tend to take on more new projects, more new spends that the client issues.

So, yeah, you know you are right. Net new is fully new, so that will add to the revenues directly in terms of just renewal. Is there a deflationary pressure? You know, uh, like I said, every deal, every time there is a productive renewal, there is a productivity that gets passed on.

Operator: You know, we've spoken about how some of this productivity is put back into prioritized spends around AI, AI adoption, and we are playing a huge role in that. In some sense, in the renewal plus expansion, there is a reasonable scope expansion, and therefore, there is an increase in the bookings or the revenue value that is expected. In a full-fledged renewal, is there a compression? I wouldn't call it a compression, but this is just the standard productivity that gets passed on. It's very typical to what we've seen in renewal deals over the last few years.

And initiate. Uh, you know, we've spoken about how some of these productivity is put back into prioritize spends around AI adoption and we are playing a huge role in that.

so, in some sense,

Nitin Padmanabhan: Okay, just to follow up on this one, and then I have a second one.

In the renewal plus expansion, there is a reasonable scope expansion and therefore there is an increase in the bookings or the revenue value that is uh expected in a full-fledged renewal is there a compression. I wouldn't call it a compression but this is just a standard productivity that gets passed on. It's very typical to what we've seen in renewable deals over the last, uh, you know, few years.

Operator: Mm-hmm.

Nitin Padmanabhan: I was asking this because Q2, there have been,

Operator: Yeah.

Nitin Padmanabhan: Renewal deals. Even if there is new scope, would you agree that there is a timing difference between the new scope increase?

Operator: Yes.

Nitin Padmanabhan: Versus the.

Okay, I I just to follow up on this 1 and then I have a second 1, uh, I was asking this because Q2, uh, they have been renewable and even if there is a new scope, uh, I mean, would you agree that there is a timing difference uh, between, uh, the new scope in.

Operator: There is a.

Nitin Padmanabhan: Declaration that we see near term? Does that mean that.

Operator: Yes.

Nitin Padmanabhan: Fits you in second half?

Operator: Yes, therefore, what happens is, yes, you know, there is a timing difference. There is a productivity that gets passed on. The way the deals are configured and structured, you know, typically have a certain timing and pacing. Like Srini said, each deal is very different. Are there timing differences that could really impact in the short term and play out differently in the long term? That is correct.

Isolation that we see near the down. So, does that mean that it hits you in the second half?

Yes, so therefore what happens is, yes, you know, there is...

To use a configure and structured, you know typically uh have a certain timing and pacing and like shiny said, each deal is very different. So are the timing differences uh uh that could really impact in the short term and play out.

Nitin Padmanabhan: Okay. My second question is on the impact of the bankruptcy on your top line. Did we see any impact on Q2 revenue or are we expected to see anything in the Q3 revenue?

Differently in the long term uh that is correct.

Operator: No, nothing. No, there was no impact on the revenues. We actually made a provision for bad and output debt. You will see that in our G&A, spends of expected credit loss number going up. We made a disclosure to that effect as well. This has no impact on the revenue growth in Q2.

Nitin Padmanabhan: Okay, that's all from my side. Thank you and all the best.

Okay, uh my second question is on the impact of uh the bankruptcy on your Top Line. Uh did we see any impact on 2 Q revenue? Or we are expected to see anything in the 3Q Revenue? No, nothing. No, there was no impact on the revenues. We actually made a provision for bar and out for debt. You will see that in our GNA uh tens of expected credit loss, numbers going up, and we made a disclosure to that effect as well. This has no impact on the revenue growth in Q2.

Operator: Thank you.

Operator: Thank you. We'll take our next question from the line of Nitin Padmanabhan from Investec. Please go ahead.

Okay. Uh, that's all from my side. Thank you. And always

Thank you. Thank you.

We'll take our next question from the line of Nitin Padmanaban from Investig. Please go ahead.

Nitin Padmanabhan: Hi. Thank you for the opportunity again. Earlier, you had called out some large SAP implementation projects being pushed out, POSs by clients, and so on and so forth when the tariff-led uncertainty started. Considering some time has passed, are you seeing some of these clients' conversations beginning on trying to get these things back? That is the first question. I have three more, actually.

Yeah. Hi. Thank you for the opportunity again. Uh uh earlier. Uh you had called out some uh, large sap implementation projects being pushed out bosses by clients and so on and so forth. When the Tariff flood uncertainty started

Uh uh considering some time has passed. Are you seeing some of these clients conversations beginning on trying to get these things back?

Uh, uh, that is the first question. I've, uh, three more actually.

Abhishek Jain: Nitin, specific to the comment you made in the context of what we said, in one quarter, we did talk about one of the transformation programs that came to an end. That particular client still is going through the difficulties of tariff. Unless and until that piece of the tariff is clear to them, they may not want to start the program. Having said that, we have got good traction, especially for SAP HANA across industries, Nitin.

Nitin Padmanabhan: Got it. The second is, within the EMR vertical. I think last quarter, you were a little hopeful that as there is some stability, this vertical could sort of recover in the second half. Any update on how you are thinking about EMR on a going-forward basis?

So Nathan uh specific to the comment you made in the context of what we said. Uh there was uh you know in 1 quarter we had we did talk about uh 1 of the transformation programs that came to an end uh that particular client still is going through the difficulties of tariff. Unless and until that piece of the Tariff is clear to them. Uh, they would, they may not want to start the program. Having said that, uh, we have got good traction, especially for sap, Hana across Industries, uh, anything.

Got it. Uh, the second is uh, within the EMR vertical. So I I think last quarter you were a little hopeful that as there is some stability. Uh, this vertical could sort of recover in the second half. Uh, any update on how you are thinking about EMR on a going forward basis.

Abhishek Jain: You're right, Nitin. EMR sector for us has degrown, sequentially as well as year on year. Especially the manufacturing and auto industrial, we have seen a lot more impact on account of tariffs. This sector, where we see a lot of previous generation outsourcing deals, we are hopeful to come back to the market. These deals will be very, very competitive. We are definitely staying focused on that, and some of these deals are very critical for us. As far as, on the energy consulting side, we have started seeing some good traction, and we will stay focused on that. Broadly, Nitin, again, the point I made is that we do see the opportunities in SAP S/4 HANA space in some of our clients.

Uh, you're right.

Sector for us as the grown, uh, sequentially as well as the year on year. I know, especially the manufacturing and auto industrial, uh, we have seen a lot more impact on a count of tariffs.

Uh, this sector where we see lot of previous generation, Outsourcing deals. Uh, you know, we hope hopeful to come, you know, uh, come back to the market. And uh these deals will be very, very competitive. Uh so we we will, we are definitely staying focused on that. And some of these deals are very critical for us.

Abhishek Jain: This is a quarter where many of our clients are doing budgeting planning, especially where they look at the discretionary spend and so on and so forth. We are looking at that aspect as well. Many of these clients, in the context of what's coming at them, they are also driving cost optimization and vendor consolidation. We continue to stay focused on that. There are certain deals we are also seeing on the post-merger integration space. That's another one we are kind of focusing on. Utilities, which is a part of the energy sector, is kind of muted for now, but especially in the UK sector, we hope that sector would turn around. Broadly, there are multiple dimensions and aspects for energy and manufacturing, but net net, Nitin, your question is very valid.

Nitin Padmanabhan: Perfect. Just one last one from my end. You alluded to a very strong sort of deal pipeline. Are you seeing any improvement in smaller-sized deals within that pipeline at the moment? Do you, how do you see furloughs this year, currently when you just think about it versus last year? Thank you.

And, uh, you know, many of these clients, you know, in the context of what's coming at them, they're also driving cost, optimization and vendor consolidation. So, we, you know, we continue to stay focused on that and there could be, you know, um, there are certain deals. Uh, we are also seeing on the post merger integration space. Uh, so that's another 1. You know, we are kind of focusing on utilities, you know, which is a part of the energy sector is kind of muted for now. Uh, but you know, especially in the UK sector. We, we hope you know, that sector would turn around. So broadly there are multiple, uh, dimensions and aspects for energy and Manufacturing, uh, but net net. Net in a very valid, uh, you know, uh, your your question is very valid.

No, perfect. Just 1 last 1 from my end. Uh, you alluded towards uh, very strong sort of deal pipeline. Are you seeing any Improvement in smaller size deals within that pipeline at the moment? And, uh, do you, how do you see for laws this year? Uh, currently, when you just think about it versus last year?

Abhishek Jain: As far as the, yeah, Nitin, you know, as far as the deals pipeline is concerned, like I said, after closing close to $9.5 billion of booking in H1, I would say our pipeline is sustained and it is robust. This is, if you ask me, going back to a specific question, evenly distributed across the large deal and across small deals. I'm seeing this consistency across sectors in the GEO. Our pipeline is a lot more secular. Broad theme, Nitin, is cost, of course, speed and AI-led efficiency as opportunities that keep coming towards. In the last few months, if you ask me, we have pitched in a lot of proactive ideas to our clients, especially because of the macro challenges that they are facing. Also, we are trying to convert that into our qualified pipeline initiatives as well.

thank you as far as the

Abhishek Jain: Of course, there will be small vendor consolidation deals as and when it comes up, we'll stay focused. The fact that we are one for mega deals, which are typically cost optimization and/or vendor consolidation, I think we have created a robust engine to go after the large deals, Nitin. As far as.

Yeah. They didn't know as far as the fields, you know, pipeline is concerned, like I said, uh, uh, after closing, you know, close to 9 9.5 billion dollars of booking in H1, I would say our pipeline, uh, you know, is sustained and it is, uh, robust. And uh, this is uh, uh, if you ask me going back to your specific question, this is evenly distributed across the large deal and across small deals, and I'm seeing this consistent across sectors and go. So, our pipeline is a lot more secular, but, you know, broad theme. Um, nitin is a cost, of course, speed and AI deficiency as opportunities that, uh, keep coming towards. And, you know, there are in the last few months. If you ask me, you know, we have pitched in lot of proactive ideas to, you know, to our clients, especially because of, uh, the macro challenges that they are facing. And also, you know, trying, you know, we are trying to convert that into our qualified pipeline initiative.

As well.

Then, uh, of course, there will be a small vendor consultation deal as and when it comes up. You know, we'll stay focused on the fact that, you know, we have 14 mega deals, which are typically cost optimization and our vendor consolidation. I think we have created a robust engine to go after the large deals within.

Nitin Padmanabhan: On the.

Abhishek Jain: Furloughs.

Nitin Padmanabhan: Furloughs, yeah.

Abhishek Jain: As far as furloughs are concerned, we are taking a similar approach like last year. We're taking that as the assumption right now, Nitin.

As far as to, and on the year.

Nitin Padmanabhan: Perfect. Very helpful. Thank you so much and all the best.

As far as LOS are concerned, you know, we are taking a similar approach like last year. We are taking that as the assumption right now, nin.

Operator: Thank you. Ladies and gentlemen, that was the last question for today. I would now like to hand the conference back to Mr. Abhishek Jain for closing comments. Over to you.

So perfect. Uh very helpful. Uh thank you so much and all the best.

Thank you.

Ladies and gentlemen, that was the last question for today. I would now like to hand the

Back to Mr. Abishek Jan for closing comments. Over to you.

Srinivas Pallia: Yeah. Thanks. Thanks, Srini. Thank you all for joining the call. In case you have any follow-up questions, please feel free to reach out to the Investor Relations team. Thank you and have a nice day.

Operator: Thank you. On behalf of Wipro Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.

Yes, yeah, thanks. Thanks for uh, thank you all for joining the call. Uh, in case you have any uh follow-up questions. Feel uh, please feel free to reach out to the investigation. Team, thank you and have a nice day.

Thank you on behalf of the pro limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.