Financial Data and Key Metrics Changes - The IT services revenue for Q3 FY26 was $2.64 billion, reflecting a sequential growth of 1.4% in constant currency and 1.2% in reported currency [5][11] - Year-on-year revenue growth was flat at 0.2% in reported terms but declined by 1.2% in constant currency terms [11] - Operating margin improved to 17.6%, an increase of 40 basis points quarter-on-quarter and 10 basis points year-on-year [11][12] - Adjusted net income for the quarter was INR 33.6 billion, with adjusted EPS at INR 3.21, marking a 3.5% increase quarter-on-quarter and flat year-on-year [12] Business Line Data and Key Metrics Changes - Americas 1 grew 1.8% sequentially and 2.8% year-on-year, while Americas 2 saw a decline of 0.8% sequentially and 5.2% year-on-year [12] - Europe experienced a sequential growth of 3.3% but a year-on-year decline of 4.6% [12] - APMEA grew 1.7% sequentially and 6.6% year-on-year, with BFSI growing 2.6% sequentially and 0.4% year-on-year [12][13] - The consumer sector grew 0.7% sequentially but declined 5.7% year-on-year [12] Market Data and Key Metrics Changes - The Americas 1 market showed strong performance in healthcare, consumer, and LATAM, while Europe saw growth driven by a ramp-up of a previously announced mega deal [6][12] - APMEA's growth was led by India, the Middle East, and Southeast Asia, with BFSI showing strong traction [7] Company Strategy and Development Direction - The company is positioning itself for an AI-first world, focusing on AI-led transformation, cost optimization, and vendor consolidation [4][5] - Wipro Intelligence is a unified approach to delivering AI-powered transformation across industries, anchored on industry platforms, delivery platforms, and an innovation network [7][8] - The acquisition of Harman DTS is expected to enhance engineering capabilities and accelerate AI-driven product innovation [10] Management's Comments on Operating Environment and Future Outlook - Management noted that organizations are reshaping priorities due to AI's influence on business models and operations [4] - The guidance for Q4 projects IT services revenue growth of 0%-2% in constant currency, impacted by fewer working days and delayed ramp-ups [10][14] - Management expressed confidence in the deal pipeline, particularly in energy and manufacturing sectors, despite current macroeconomic uncertainties [20][23] Other Important Information - The board declared an interim dividend of INR 6 per share, with total cash distributed to shareholders exceeding $1.3 billion for the financial year [15] - The company has a gross cash position of $6.5 billion, indicating strong liquidity [14] Q&A Session Summary Question: Concerns about revenue loss in energy manufacturing resources - Management acknowledged a $24 million revenue loss in the EMR vertical, attributing it to macroeconomic uncertainties and supply chain issues, but noted a strong deal pipeline [17][20] Question: Delays in ramp-ups impacting growth - Management indicated that some deals would take a few quarters to ramp up, with confidence in future growth as these deals convert [18][19] Question: Outlook for the consumer vertical - Management highlighted tariff impacts and a large SAP program on hold, but noted that some earlier wins are ramping up [28][29] Question: Impact of Harman DTS acquisition on growth - Management stated that the acquisition would enhance capabilities in tech and communications sectors, improving win rates [41][42] Question: Future of buybacks and excess cash - Management confirmed that buybacks remain an option for returning cash to shareholders, contingent on market conditions and statutory considerations [74][75]

Financial Data and Key Metrics Changes - The IT services revenue for Q3 FY26 grew 1.4% sequentially in constant currency terms, and 1.2% in reported currency terms [10] - Year-on-year revenue growth was 0.2% in reported terms, while it declined 1.2% in constant currency terms [10] - Operating margin for the quarter was 17.6%, an expansion of 40 basis points over the adjusted operating margin for Q2, and a 10 basis points improvement year-on-year [10][11] - Adjusted net income for the quarter was INR 33.6 billion, with adjusted EPS at INR 3.21, reflecting a 3.5% quarter-on-quarter increase and flat year-on-year [11] Business Line Data and Key Metrics Changes - Americas 1 grew 1.8% sequentially and 2.8% year-on-year, while Americas 2 declined 0.8% sequentially and 5.2% year-on-year [11] - Europe grew 3.3% sequentially but declined 4.6% year-on-year [11] - APMEA grew 1.7% sequentially and 6.6% year-on-year, with BFSI growing 2.6% sequentially and 0.4% year-on-year [11][12] - Health sector grew 4.2% sequentially and 1% year-on-year, while Consumer grew 0.7% sequentially but declined 5.7% year-on-year [11][12] - Communications grew 4.2% sequentially and 3.5% year-on-year, while EMR declined 4.9% sequentially and 5.8% year-on-year [12] Market Data and Key Metrics Changes - The Americas 1 market showed strong performance in healthcare, consumer, and LATAM, while Europe saw growth driven by a ramp-up of a previously announced mega deal [5][6] - APMEA's growth was led by India, the Middle East, and Southeast Asia, with BFSI showing strong traction [6] Company Strategy and Development Direction - The company is positioning itself for an AI-first world, focusing on AI-led transformation, cost optimization, and vendor consolidation [4][5] - Wipro Intelligence is a unified approach to delivering AI-powered transformation across industries, anchored on industry platforms, delivery platforms, and an innovation network [6][7] - The acquisition of Harman DTS is expected to enhance engineering capabilities and accelerate AI-driven product innovation [9] Management's Comments on Operating Environment and Future Outlook - Management noted that organizations are reshaping priorities as AI influences their operations, with a clear shift towards AI-led transformation [4] - The guidance for Q4 projects IT services revenue growth of 0%-2% in constant currency, impacted by fewer working days and delayed ramp-ups in large deals [9][14] Other Important Information - The board declared an interim dividend of INR 6 per share, with total cash distributed to shareholders exceeding $1.3 billion for the financial year [15] - The company has a gross cash position of $6.5 billion, with net other income growing 15% sequentially [14] Q&A Session Summary Question: Concerns about revenue loss in energy manufacturing resources and deal pipeline outlook - Management acknowledged the revenue loss in EMR and noted that the pipeline remains strong, with good momentum in energy sectors in both Americas and Europe [17][20] Question: Delays in ramp-ups impacting growth for next quarter - Management indicated that some deals will take time to ramp up, and while Q4 may not realize full impacts, they are confident in future growth [18][19] Question: Outlook for consumer vertical and tariff impacts - Management confirmed that tariff uncertainties have impacted the consumer sector, but some earlier wins are ramping up, which should support future growth [29][30] Question: Insights on tech and healthcare verticals - Management noted consistent performance in healthcare, driven by seasonal factors, and highlighted growth in tech due to the Harman acquisition [32][33] Question: Guidance on margins and potential buyback options - Management stated that while margins are expected to remain in the 17%-17.5% band, they will need to invest for growth, and buyback remains an option for returning cash to shareholders [48][51][75]

Financial Data and Key Metrics Changes - The IT services revenue for Q1 was $2,590 million, reflecting a 2% decline in constant currency terms, which is within the guidance range [7][20] - Operating margin for Q1 was 17.3%, an expansion of 80 basis points year on year [21] - Net income grew by 10.9% year on year, with earnings per share (EPS) at INR 3.2, a growth of 10.8% year on year [24][25] - Free cash flow as a percentage of net income was robust at 115% for the quarter [25] - The effective tax rate was 21.6% for Q1, down from 24.5% in Q1 2024 [26] Business Line Data and Key Metrics Changes - BFSI sector saw a decline of 3.8% sequentially and 3.5% year on year [23] - Healthcare grew by 0.5% sequentially and 3.5% year on year [23] - Consumer sector declined by 4% sequentially and 5% year on year [23] - Technology and communications grew by 0.4% sequentially but declined by 3% year on year [23] - Capco continued to perform well, growing by 6.1% year on year [24] Market Data and Key Metrics Changes - Americas market grew by 1.5% year on year in constant terms, with strong deal momentum [7] - Europe faced a decline of 6.4% sequentially and 11.6% year on year [22] - Digital spending in India, the Middle East, and Southeast Asia remained resilient [8] Company Strategy and Development Direction - The company is focusing on AI, data, and modernization programs, aligning with client priorities [5][6] - Emphasis on vendor consolidation and cost optimization as key drivers for deal wins [12][45] - The company aims to build an AI-first enterprise, integrating AI capabilities into industry solutions [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the macro environment, citing ongoing geopolitical uncertainties and tariff impacts [36][100] - Despite uncertainties, there is strong deal momentum in BFSI and technology sectors, with clients focusing on cost optimization and AI investments [37][102] - The outlook for the second half of the year appears positive due to a strong order book and healthy pipeline [18][71] Other Important Information - The board declared an interim dividend of INR 5 per share, distributing over $1,300 million in the last six months [26] - The company revised its capital allocation policy to pay out a minimum of 70% of net income over three years [27] Q&A Session Summary Question: What is the macro outlook right now? - Management acknowledged ongoing uncertainty in the macro environment, with geopolitical issues and tariffs affecting various industries [36] Question: What powered the Americas One performance despite sector declines? - Strong performance in health and communications sectors contributed to the growth in the Americas market unit [39] Question: Is discretionary demand returning? - Discretionary spending is returning in certain areas, particularly around AI and modernization projects [45] Question: How are large deal wins impacting financials? - Large deal wins will take time to ramp up, typically around six to eight quarters, but are expected to positively impact revenues [70] Question: What is the outlook for margins going forward? - Margins may face pressure due to upfront investments required for large deals, but management remains optimistic about maintaining profitability through operational excellence [98]