Wipro Limited Sponsored ADR Stock

Ladies and gentlemen, good day, and welcome to Wipro Limited Q1 FY '27 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded and the duration for today's call will be for 45 minutes. I now hand the conference over to Mr. Abhishek Jain, Vice President, Corporate Treasurer and Head of Investor Relations. Thank you, and over to you.

Thank you, Yashashri. Good evening, and warm welcome to our Q1 FY '27 earnings call. We'll begin the call with the business highlights and overview by Srinivas Pallia, our Chief Executive Officer and Managing Director; followed by updates on financial overview by our CFO, Aparna Iyer. We also have our CHRO, Saurabh Govil; and the Chief Strategist and Technology Officer, Hari Shetty on this call.

Afterwards, the operator will open the bridge for Q&A with our management team. Before Srini 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 of 1995. These statements are based on management's current expectations and are associated with uncertainties and risks, 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. 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 Srini.

Thank you, Abhishek. Good evening, everyone. Thank you for joining us today. Let me start with a quick view of the broader market. The macro environment remains resilient, but uncertainty continues to shape decision-making. Technology investment has not slowed. They have become more focused. Clients continue to invest in AI, data, cloud, modernization, cybersecurity and productivity-led transformation.

Spending today is measured with more rigor and longer decision cycles. The AI disruption is expanding the market, not shrinking it. At the same time, conversations around AI are becoming more intense. As the tokenization landscape evolves, clients are focused on net productivity and require a tighter linkage between investment and outcomes. Despite selective client spending, our pipeline remains healthy. We continue to see strong engagement across our markets and industries. We are executing a consulting-led AI-powered strategy to help our clients reimagine and redesign their enterprise around intelligence.

With that, I'll now share our financial performance. All numbers are in constant currency. Our IT services revenue for quarter 1 was $2.61 billion, up 0.9% year-on-year and down 1.2% sequentially. Our IT services margin was 16%, a 1.2% decline year-on-year. In our markets, Americas remained soft, declining both sequentially and on a year-on-year basis. We continue to see momentum in technology and communications sector and some good wins in the consumer sector.

As we move into quarter 2, we are also seeing momentum build up in BFSI. APMEA's revenue grew sequentially and on a year-on-year basis. We are encouraged by the momentum we continue to see in this market, particularly in the BFSI and consumer sectors. Our Europe SMU grew year-on-year with strong traction in BFSI, technology and communications. However, energy, manufacturing and resources remain soft. We see a healthy pipeline across various regions in Europe, such as U.K. and Nordics.

During the quarter, order booking totaled $3.4 billion and large deal bookings totaled $1.6 billion. Our order bookings includes 13 large deals this quarter. Let me highlight 2 of these deal wins. A leading global animal health care provider selected us to modernize and manage digital operations across their global network of hospitals and clinics. Using Wipro Intelligence, we will help transform service operations, improve productivity and enable predictive issue prevention. We are helping the client create a more autonomous technology environment. The goal is to improve experiences for clinical teams, employees and customers while increasing operational rigor.

In our second deal win, a leading European specialty chemicals company chose us to run and transform the complex application landscape, leveraging AI-led capabilities through WINGS, part of our Wipro Intelligence. We will automate operations, improve delivery efficiency and provide greater visibility through an AI-powered digital command center. The outcome here will be elevated service quality, higher productivity and lower operating costs.

Across markets and industries, we are helping clients reimagine operations by embedding AI at the core of their business, spanning both physical and digital worlds. In this context, let me share some examples of the work we are already doing with clients. One, for a global industrial manufacturer, we are reimagining finance and procurement through our WINGS platform combining agentic AI, intelligent orchestration, real-time analytics and AI-powered knowledge management to create a highly automated operating model.

In my second example, with one of our health care clients, we are deploying multi-agent AI systems, reducing provider enrollment processing times up to 70% while automating their manual effort up to 90%. See for a leading global technology company, we are improving the quality, reasoning and safety of their next-generation AI models through expert-led data creation and AI evaluation. This is delivering significant gains in model accuracy and reasoning capability.

With a Life Sciences client, our WINGS platform is transforming pharmacovigilance from a document-centric labor-intensive process into an AI-native safety operation. This is powered by autonomous agents and regulatory-grade workflows. For a global energy leader, we are defining their enterprise robotic strategy and road map for physical AI-enabled autonomous operations. Collectively, these engagements demonstrate the breadth of Wipro's AI capabilities from strategy and advisory to domain-specific solutions.

And the WINGS that I talked about also reflect a broader shift in enterprise priorities. In fact, interestingly today, clients are looking beyond technology modernization alone. The focus is moving towards AI-enabled operating models that improve service quality, reduce operational complexity, strengthen resilience and unlock sustainable productivity gains. And this is where we are well positioned. Let me now share a few additional updates.

During the quarter, we closed the acquisition of Mindsprint and quickly transitioned from integration planning to execution. While we continue to deepen our relationship with Olam Group, we have also started to see good opportunities in the food and agricultural sector. You may recall last quarter, we launched AI native business and platforms unit. Since then, we have moved decisively from strategy to execution.

We are building multiple AI-powered industry platforms, developing new AI native business models and forging strong partnerships across the AI ecosystem. We have laid the foundation to strengthen the team with specialized AI native leadership talent and define our road map to establish clear priorities for the next phase of growth. As you would have been aware, we recently launched Applied AI Center of Excellence for Claude models powered by Anthropic. This strengthens our ability to help clients rapidly adopt frontier AI capabilities while maintaining enterprise-grade controls and governance.

Capco, our BFSI consulting arm, won the AI Governance and Risk Excellence Award at the OpenAI Partner Summit. And our U.K. AI Lab won the OpenAI Codex hackathon for an AI-powered banking solution. With that, let me shift focus to the next quarter.

In quarter 2, we are guiding for a sequential growth of minus 1.5% to plus 0.5% in constant currency terms. As we continue to navigate macro uncertainty and geopolitical instability, our priority is to remain disciplined in execution, helping clients navigate complexity and creating sustainable value for all our stakeholders.

With that, let me hand it over to Aparna to share financial performance in more detail. Thank you.

Thank you, Srini. Good evening, everybody, and thank you for joining us. Let me share a quick update on the financial performance, and then we can open the queue for questions. Our IT services revenues grew 0.9% year-on-year in constant currency, while declining 1.2% sequentially. This is well within our guided range. Our operating margins for the quarter was 16%. We declined 1.2% year-on-year. The reasons are because of the incremental impact of salary increase, ramp-up of large deals won earlier and our ongoing investments in AI.

This was partially offset by the rupee depreciation benefits and the other operational efficiencies. We remain focused on returning back to our previously stated narrow band. Net income for the quarter was INR 33.6 billion. Our EPS for the quarter was INR 3.2, both grew 0.6% year-on-year.

Moving on to our SMU and sector performance. All the growth numbers that I will share will be on constant currency. A1 was flattish year-on-year while declining 2.3% sequentially. Americas 2 declined 7.3% year-on-year and 2.5% decline sequentially. Europe grew 6% on a year-on-year basis, while declining 0.9% sequentially. APMEA grew 13.5% on a year-on-year basis and grew 4.4% sequentially.

Moving on to sector performance. BFSI grew 2.6% on a year-on-year basis while declining 1.2% sequentially. Consumer grew 1.9% year-on-year and 0.7% growth sequentially. Technology and Communication grew 10.8% on a year-on-year basis and grew 0.2% sequentially. Health declined 2.6% sequentially and 3.0% year-on-year. EMR also declined 3.6% sequentially and 8.9% year-on-year. Our operating cash flow stood at 98% of net income for quarter 1. Our gross cash, including investments was at $4.3 billion. Accounting yield for the average investments held in India was stable at 7.2%. Our ETR was at 22.6% for quarter 1 versus 21.6% in the same time last year.

In terms of the guidance to reiterate what was stated by Srini, our IT Services business segment is expected to be in the range of $2.574 billion to $2.627 billion. This translates to a sequential guidance of minus 1.5% to plus 0.5% in constant currency terms. Lastly, in the recently concluded Board meeting, our Board of Directors have declared an interim dividend of INR 2. Including this dividend, our payout in the last 1 year, we would be returning in excess of $3 billion in terms of the cash back to shareholders. With this, we can open up for Q&A.

[Operator Instructions] We'll take our first question from the line of Ravi Menon from Axis Capital.

I remained a little surprised that you have added headcount despite the guidance that implies a sequential decline. Attrition still seems to be well under control. Utilization has also come off slightly quarter-on-quarter. So why add headcount now when you're still looking at a decline in revenue next quarter?

Our headcount also includes the people who joined us from the Mindsprint team, Ravi. If you exclude that, our headcount has actually gone down quarter-on-quarter. And our guidance, of course, includes the revenues from Mindsprint completely in quarter 2.

Just to add, outside of Mindsprint, our headcount has actually gone down by 2,500 people.

Yes, 2,500 people, that's right.

Right. And in BFSI, most of the peers seem to be doing well. And you also spoke of how things seem to be looking up there. But this quarter then we had a decline. What is the client-specific issue? And is this something that you expect to maybe hold us back a little bit in Q2 as well? Or do you think BFSI comes back to growth?

Srini here. So as far as the BFSI sector is concerned, specifically for us, Ravi, if you have seen, we did see a year-on-year growth of 2.6% in constant terms. However, the sector declined 1.2% sequentially. Now if I were to give a little bit of a color in terms of how the sector has performed. Europe and APMEA, Ravi, actually year-on-year, we have seen a growth. In fact, Europe BFSI growth was led by ramp-up of the large deals we had announced earlier.

And if I were to look at APMEA, we continue to see very good traction with both in terms of ramp-ups and also existing deals and the new deal wins that we have seen. I also want to call out that we see good momentum in the BFSI in Americas as well. So net-net, yes, I agree with your comment. And having said that, we are also seeing good traction for us as well, Ravi.

Appreciate that. So we can look at this as maybe a one-off client incident, something like that. Is there any cutback? Or did you lose out any vendor consolidation? Could you comment on what caused the decline this quarter?

See there are 2 aspects, Ravi. One is clearly, some of the large deals that we have won have taken a lot more time for us to scale and ramp up. I think now the clients are moving. That's the reason why I said BFSI Americas because we have won a couple of deals, -- large deals out there. Some of them are coming back.

The second one is the nature of the demand. Discretionary spend has been slower and some of the decision-making has been slower, but we think it will come back. One thing that we are seeing, while from a customer perspective, in the BFSI sector, there are a couple of opportunities that we see, Ravi. One is on the cost optimization and vendor consolidation. That remains the key drivers for our clients, right? And this is very similar to the commentary that we gave in the last few quarters.

However, Ravi, what we are now seeing is that these savings are getting reinvested by some of our clients into AI capabilities. And that's where I think the new transformation projects and discretionary spend will come back. That's how we see it, Ravi.

One last question, if I may. On AI, your couple of peers have announced very different strategies, one setting up a very big large data centers, someone else looking at a small capacity data center, which they think they will -- but they will own the entire hardware stack. Anything that you're thinking along those lines?

So Ravi, one is, I think at a macro level, the way we see is that AI is a structural opportunity for us and for the industry in general, Ravi. Having said that, the success in AI, to be honest, is not just driven by models, right? For us, having the client context, understanding the domain and the industry aspect of it, understanding the process, right? And priming the data for an AI implementation becomes very critical. And also, clients are looking at security and change management, organizational change management in this context.

So that is where I would say that the direction that AI is moving on. And for us, Ravi, very clearly, we have pivoted to AI. And we are doing an AI-first approach and our consulting-led AI-powered strategy is all about that. So when you are doing a run aspect of it, which is application management, infrastructure or process, we are doing with AI-first approach. And we have clearly built a strong platform around WINGS, which we are gaining very good traction, which is our delivery platform.

And the second thing, Ravi, obviously, you would be listening to a lot of commentary around that, the software development life cycles, there's a dramatic improvement in productivity. Now that's -- we have to have the context of -- if it's a pure-play greenfield project, which is like a tool like, let's say, Python, the productivity is significantly higher. But on the other end of the spectrum, it is a complex code. And if you don't have the right target environment, which is a lot more legacy, deployment and production also becomes difficult. There, the productivity comes down significantly.

And so that's how we see it. But for us, the biggest opportunity is all the new AI services that we are seeing in the market. Now we call that as Reimagine AI. Now I think it's very important also what we are trying to do. Maybe I'll double-click later, but we have clearly created AI native unit, which I have talked to you about where we are building the industrial -- cross-industry platform. In fact, some of the margin dilution that you -- the question that was asked, we are investing in this. I think it's very important for us to invest for the future.

So that's number one, AI native unit. Second, we have the $0.5 billion Wipro Ventures. And now we're very specifically, focusedly targeting those AI and data and security startups, which will also enhance our overall Wipro Intelligence platform. Three, we invested in our Wipro innovation network. We actually launched 10 innovation networks for our clients, and that's actually picking up. The clients are co-innovating with us in those innovation networks. And finally, ecosystem partnering with the frontier AI companies. So this is how we are driving AI across our industries, and each industry are different in terms of adoption, but everyone wants to be in the AI journey, Ravi.

Sir, I have one more thing. When you said that there is not much productivity benefit in the old complex world. So then can we say that there is always investor concern about significant erosion on the existing book of business. Can we say that this is really unfounded?

So the way I see it, Ravi, is that I'm looking at for the industry and for Wipro, right? What are -- like I said, structural -- what are the structural opportunities. Today, if you look at the traction that we have on the Reimagine AI services, that's how I call them new AI services. One, AI advisory and change management. That's something that, for example, Capco is leading it. OpenAI gave us an award around that.

Second is data priming for AI, right? If you don't have -- enterprises are struggling with data. We have to be honest about that. Some enterprises have told us we've got too much of data. We don't know whether this -- do we need all this data to get the AI right.

Third is agent implementation and managing agents. Every organization is building tremendous number of agents, how do you deploy them? How do you orchestrate, deploy and manage them? And Ravi, the tokenization, token economics, whatever you call it, it's going -- it's actually skyrocketing right now. So especially the CFOs are saying, "Hey, what's my ROI? So do I use high-end LLM for a particular process of the workflow? Do I use an open source model?" So that's a conversation that's going on. We're having the deep tech, we are able to actually have that conversation with the client.

So there are multiple new opportunities whether it's Model ops, AIDC is something that's picking up with enterprises. You would have heard of sovereign AI. So that's another one picking up. And finally, every client want us to make their AI secure and responsible.

So to me, net-net is positive in terms of new services that are coming in. Yes, short-term SDLC life cycle will continue to bring in higher productivity and shorter development life cycle. But I just want to call out even there it is going to be human plus AI always because in a software development life cycle, the business requirement, user stories you need humans.

At the same time, when you are deploying productivity and taking into production, you need human intervention. Of course, AI can throw millions of lines of code, but we need to make sure that code is optimized. So that's how I see it, Ravi.

Next question is from the line of Nitin Padmanabhan from Investec.

First, I wanted your thoughts on how should we see margins recovering to the band that we stated? Do you think it will be gradual through the year? Or do you think there's any element that can help a faster sort of recovery, considering we don't have wage increases and that's done and behind?

The second is, from an overall business perspective, when do you think the headwinds sort of recede where we can start showing some level of growth as a business? And do you think these headwinds are largely over in Q2? Or do you see any specific things that could linger?

Hi, Nitin. Srini here. On the margin aspect, Nitin, Aparna talked about it as well in our commentary. The reason why we had a drop of 120 basis points is number one, the impact of MSI we had, it's coming into this quarter. Second, the investments that we are making in AI and in deals, that's the second part. Third is the -- some of the acquisitions that we made, they're actually coming into execution mode right now. So that's the impact of the -- impact we had on the margin. Having said that, Nitin, our mission is clearly to go back to the narrow band that we've been talking about 17% to 17.5%.

Now the question that you're asking is what is the time frame. Right now, in the context of the volatility that we see in the context of the revenue situation that we see, right, I do not want to predict exactly when we will get there. But the point is that we want to get there.

If you have noticed in the last 2 years also, Nitin, despite the challenges with the revenue, we continue to stay focused on margin improvements. You can be rest assured we will continue that path. However, I want to clearly articulate that we want to invest in our new AI native business. We want to -- because when you're doing an AI native business, you also need to have the right talent, you need to have the right infrastructure to build the new products, new platforms and solutions as well. So it's a combination of all this, Nitin.

Yes. Qualitatively, do you think it's fair to assume that it's gradual rather than quicker? Just a qualitative thought process is fine.

Yes. The endeavor is to reach where we want to reach. And if you look at, Nitin, there are multiple levers for us from an operational perspective, whether it's how you can take the cost out in FAP, both in terms of automation, AI and productivity. We have other levers, including G&A and so on and so forth. The bench utilization has been higher. That's another lever that we have. How do you restructure the pyramid, right, in the context of AI and how much of the projects and programs you can run it through agents and how many of our current existing programs we can identify.

So these are all the levers that we are looking at, Nitin, and we'll stay focused on that. But the point -- the message I wanted to give you is that despite all this, we will also want to continue to invest in our future, which is very, very critical because the world is pivoting to AI, and we have already pivoted to AI. And we will continue our journey around consulting-led and AI-powered, and we will stay focused on that. Wipro Intelligence platform, both delivery platforms and the industry -- cross-industry platforms, we are seeing good traction, Nitin. And in the future, the consumption will be platform-plus service, not just pure-play service.

Sure. And from a growth perspective, when do you think these headwinds that you're seeing sort of recede?

Yes. So if you look at from a growth perspective, Nitin, typically, we give just 1 quarter view of our guidance, right? Like I said, the demand environment remains soft, and that has reflected in our quarter 2 guidance. Having said that, Nitin, I just want to call out the points that I made that we are seeing good traction building up in Americas in the BFSI segment, right, which was a question that Ravi had asked.

Second, EMR, which is energy manufacturing resources sector, which was very soft in Europe and APMEA. We have won a couple of deals in Europe in this segment. We will see that coming into delivery, right? So to me, also the way the customer takes the cost out, then they start shifting their budgets to AI, we are ready for that. That's how I see it. So I can't give a commentary in terms of how our quarters will go because I want to stay within our -- the quarter 2 guidance.

Next question is from the line of Vibhor Singhal from Nuvama Institutional Equities.

So it should be a couple of questions from my side. I think 2 verticals kind of dragged the growth in this quarter, energy and health care. You mentioned about energy that the softness in the European markets and we've won a couple of deals. So good to hear that we'll probably have recovery in that soon. What's your take on the health care segment as this segment has been one of the key segments in which we were one of the early...

Vibhor, sorry to interrupt you. We could not hear you properly. I'm sorry, could you just repeat the question? Go ahead, Vibhor.

Yes. I hope I am audible now?

Yes.

Yes. Sorry for that, Srini. Yes, so my question was basically on the -- that there were 2 verticals which dragged the growth this time. One was the E&U, which you mentioned that it was [Audio Gap] good to hear that there are deals that we have won will ramp up in the coming quarters. On the health care vertical, what is the view that we are looking at? I mean we used to be -- I mean, we were one of the pioneers of this industry. And from the peers, we hear a lot of comment, a lot of companies are kind of incubating their health care vertical because of the strong demand that they are seeing, especially from the payer side and some, of course, in the provider side as well.

So what is the outlook on that vertical in terms of deals that we might have won? And when do you think that vertical kind of comes back to growth? I'll have a couple of follow-ups, if you can answer this, please.

Sure, Vibhor. I think your observation is very valid. For us, the health care sector has degrown by 2.6% sequentially and if you look at from a year-on-year basis, 3%. See, what has happened is, especially when I say health care, we have multiple segments. We have got payers, we got providers. We got Life Sciences and we have got medical devices companies. These are the 4 industry segments within the health care sector.

We have a huge presence in payers and providers in the U.S. The impact that we had is because of the U.S. health care ecosystem, right, which is facing sustained pressure, both from structural and demographic forces due to the situation, which is very much within the U.S. context, right? So what we have seen in some of these companies are because of the pressures that they have from the whole government and so on and so forth, right? There have been -- their budgets have been flattish for us. In some places, we have seen the negative growth. There also -- there's a lot of pressure in terms of taking the cost out.

And also, most of the budgets right now are kind of being reallocated to some kind of discretionary spend, but towards AI and a big portion of it is on the compliance reverse. So to me, the more they use AI and automation aggressively and offset the cost pressures, I think that would help us going forward. So we are staying focused on the regulatory mandates like I talked about, like both Medicare, Medicaid and ACA. If you recollect, we have a huge platform that supports these aspects.

So the member onboarding in terms of member services that we need to do, how that has evolved for us in the last 1 to 2 quarters also had an impact on the numbers that you see. Having said that, if I look at the opportunities that we see, right, especially reimagining some of their processes with AI. So Vibhor, claims is one important thing. Clients are looking at taking the cost out on contact centers, right? Also, now more and more with the HIPAA compliance and the regulatory compliance coming into picture, they are able to do -- deploy AI more confidently into clinical operations, including regulatory processes. So I see these as our new opportunities that are coming in. We are staying focused on that, Vibhor.

Got it. Got it. Any time line that you would be able to provide that you think our health care vertical should see some recovery?

So Vibhor, like I said, I don't want to forecast beyond quarter 2. So quarter 2 is -- all this that I talked to you about is baked in. Having said that, AI -- like I said, AI is a structural opportunity. I see this opportunity in every industry verticals within the health care system, Vibhor, including for providers because they also want to improve their efficiency.

Let's look at providers today. They depend a lot on these products like Epic, who are also making it more AI. They are actually integrating their provider systems into payer systems and so that -- and employee -- the members and the patients, they can actually have an end-to-end view of how the Medicare medical systems work as well. So these are the opportunities that are coming in. We are having the conversations around that as well, Vibhor. But I'm not giving you a specific time line at this point in time.

Got it. Got it. This is helpful, Srini. Just my second question on the deal wins. The total deal wins and the large deal wins were down quite sharply on a Y-o-Y basis. I would assume it is just a timing kind of a thing because you mentioned the pipeline remains quite strong. So maybe some deals got pushed into Q2 or something like that. Is that correct, Srini?

So absolutely, Vibhor. If you look at our quarter 1, right, we clearly had, like I said, $3.3 billion (sic) [ $3.4 billion ] worth of bookings, out of which $1.6 billion were 13 large deals that contributed to that. Having said that, your point is valid. Some of the decisions on some of these deals have actually slipped to quarter 2. And I always tell my team, when it slips, you've got to really hold on, don't make it slip because -- and try and let's close it in M1, M2 rather than wait for the M3. So that's the work that we are doing right now.

But your point is valid. The observation is valid. The pipeline is healthy. And also there are deals around cost optimization and vendor consolidation. But I also want to call out, Vibhor, that I want to give you a little bit of color in terms of the kind of pipeline we have, right? So the pipeline -- let me give you one color, Vibhor. One is sectors. Let me also give you the type of deals outside of these large and mega deals, right?

So I called out BFSI, if you remember, right? Americas and Europe, the pipeline is strong, Vibhor. But if I look at from a consumer, we just won a couple of deals in the Americas. But it is -- I wouldn't want to say that it is a big piece, but it's definitely modest in Americas and Europe. In APMEA, consumer is weak. That's how I see it, Vibhor. Tech and comms, very strong in Americas. I think that's one place we are seeing double-digit growth that I talked about. And I think we will -- we continue to see strong momentum there.

EMR, which you also called out after I said it. Right now, it's strong in Europe because we come on back of 2 wins. And also, it's strong in Americas, including our LatAm, but a little bit modest in APMEA, I think, based on what's going on. Health care, I did talk about it, right? I want to -- overall, it's strong, but I want to be careful in terms of what we call out. So that's the color from a sector perspective, Vibhor.

But if I look at from an opportunity perspective, there are new opportunities also coming in, like I talked about, right? There are clients who are talking to us on sovereign AI. There are clients who want to build AI DCs, right? So those opportunities are also coming in. The size and scale depends upon how much -- for example, if I look at AI DC, how much of design architecture you do, how much of implementation and management that you do. It depends on which part of the project and program that we are involved and the size and scale and complexity depends on that, Vibhor. But overall, to your point, our pipeline is healthy.

Got it. Just one follow-up for Aparna, if I may. Aparna, just wanted to get some color on how to look at the margins in the wake of the AI-driven deals that we are seeing at this point of time. I mean I know it's difficult to take a one -- make a one statement analysis that, okay, the margins -- the deals will be margin accretive or dilutive. But from an overall point of view, I mean, let's say, we are also building SLMs for the client or let's say, the application layers for them, then there is a token cost involved.

So overall, where does the math sit for these large AI-driven deals that we are chasing and we are winning in terms of margin vis-à-vis our current portfolio?

So clearly, Vibhor, I think like you rightly said, one size doesn't fit all. It will depend deal to deal. Wherever the intention is to use AI for you to be able to drive higher productivity and take cost out for a large operation for a client where the cost takeout is priority, you will see that there will be a lot of productivity, forward productivity that gets baked into deals, right?

The Reimagine AI that Srini spoke about, the parts which are newer where you are going to be seeing newer spends on account of AI, where we are very confident we will drive a premium in rate realization. Similarly, service offerings around data, AI advisory, they will all be very -- like incrementally net positive to the rate realizations and margins. So it will depend on what we are using the AI for and how we are structuring the deal.

So large deals will remain competitive. You will have some amount of forward productivity that gets baked in. When you're looking at AI over smaller programs, where you're looking at things like data modernization and you're looking at smaller pockets and you're looking at newer areas, they will be accretive. And that's been our experience thus far. And yes...

We'll take our next question from the line of Rajiv Berlia from JM Financial.

Can you break the 2Q revenue guidance into organic and incremental contribution from inorganic?

We're not doing that, Rajiv. We are not breaking our guidance out. And if you look at it, last quarter, we had said that Mindsprint was coming in, and we had in the guidance baked in 45 days. But in our actual Q1 results, we've had 2 months of it of the revenues being consolidated. You can do the math, but like we typically do, we only disclose in the first quarter. And after that, we don't make further disclosure.

And the second part of the question is, if you see in the last earnings calls, you mentioned about client in-sourcing impacting BFSI. Is that fully behind in this quarter? Or do we see some impact from a going forward perspective as well?

No, I think that is behind us. Rajiv.

We'll take the last question from the line of Abhishek Bhandari from Nomura.

Srini, all through the call, you guys have mentioned that the large deal environment remains very competitive. I was curious to understand has the degree of competition increased, decreased or is it stable? And a related question is, how are you future-proofing your margins in the wake of such competitive pressures? We already saw some glimpse of margin headwind in Q1, which, of course, you will recoup through the year. But if the market remains like this, how do you ensure that we don't trade off the margin for chasing growth?

Yes, Abhishek, coming to the first point of -- first question on the competitive landscape. From a broader industry perspective, Abhishek, if I look at it, AI is reshaping most of the spend allocations. So what that means is from a client perspective, the traditional IT, the traditional BPO that we do and the support aspects of it, those budgets are getting compressed. So the clients want us to deploy more AI. The clients want us to kind of disrupt that aspect of the whole process to bring in agentic aspect of it.

So that is, I would say, a lever for our clients to improve their budgets for new spend pools around AI. So what -- so the clients are also driving that, which is not just competition, but also client wants to take the cost out on that. And we do have opportunities for us to go and talk to our clients in terms of, for example, how we can deploy WINGS and bring in end-to-end productivity benefits and make it more agentic. And of course, the clients are also looking at the experience aspect of it, velocity aspect of it and so on and so forth.

Now coming to the -- so if that is the place where there is compression, there is definitely competition, Abhishek. Now the reason I'm saying is that sometimes we will have to look at client to client in terms of their ability and propensity to implement AI. We are seeing certain clients who want to do it in a lot more faster way and some of them are saying that we want to spread it out. So in that context, the pricing aspects also changes and we have to relook at how the solutioning happens because when you deploy AI quickly, the token cost also increases for our clients. So they are looking at total cost of ownership. And that is something that we've been carefully working on, Abhishek, and this is something that I think as an industry, as Wipro, we will all continue to evolve.

Now coming to the margin pressure, it's actually related to that, right? So if you look at large traditional deals, cost optimization, vendor consolidation, there will be margin pressures because sometimes we want to invest into the deals for now to make it more long term as well, Abhishek. So if it is a net new Reimagine AI kind of projects and programs, right, the margins are much better. But if it's a traditional work where you have to bring in the productivity through AI at the same time, help the clients to shift the budgets that are competitive pressures.

I would now like to hand the conference back to Mr. Abhishek Jain for closing comments. Over to you, sir.

Yes. Thank you all for joining the call. In case we could not take any questions due to time constraints, please feel free to reach out to the Investor Relations team. Have a nice day. Thank you.

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

Welcome, everyone, to Wipro's First Quarter Earnings Press Conference. For those of us who are joining virtually, good morning, good afternoon, good evening.

My name is Nisha Chandrasekaran, and I will be your moderator for today. Joining me on stage is our Chief Financial Officer, Aparna Iyer; our Chief Executive Officer and Managing Director, Srini Pallia; and our Chief Human Resources Officer, Saurabh Govil. We will begin with opening remarks from our CEO, followed by a financial review from our CFO. Post that, we'll open the floor for your questions.

With that, let me invite our CEO and Managing Director, Srini Pallia.

Good evening, everyone. I see a lot of familiar faces. Thank you for joining us today. Let me start with a quick view of the broader market that we see, and I'm sure you're also following what's going on in the market. The macro environment remains resilient. But of course, there are uncertainties, which continue to shape decision-making for our clients. Technology investments, however, has not slowed. They have become more focused. Our clients continue to invest in AI, data, cloud, modernization, cybersecurity and also productivity-led transformation at an organization level. Spending today is measured with more rigor and longer decision cycles. The AI disruption is expanding the market, but not shrinking it. But at the same time, conversations around AI are becoming very intense. You all heard about the tokenization.

As that landscape evolves, clients are focused on net productivity and require a tighter linkage between their investments and their outcomes. Despite selective client spending, our pipeline remains healthy. We continue to see strong engagement across our markets and industries. We continue to execute a consulting-led AI-powered strategy to help our clients reimagine and redesign their enterprise around intelligence.

With that, I will now share our financial performance. All numbers are in constant currency. Our IT Services revenue for quarter 1 was $2.61 billion, up 0.9% year-on-year and down 1.2% sequentially. Our IT Services margin was 16.0%, a 1.2% decline year-on-year.

Just to give you some color on our markets. Americas for us remained soft, declining both sequentially and on a year-on-year basis. However, we continue to see momentum in technology and communication, and we have seen some good wins in the consumer segment. And as we move into the quarter 2, we are definitely seeing momentum build up in BFSI sector in Americas. Our APMEA's revenue grew sequentially and also on a year-on-year basis. Here, we are encouraged by the momentum we continue to see in this market, particularly in the BFSI and consumer sectors.

Europe grew year-on-year with strong traction in BFSI, technology and communication. However, energy, manufacturing and resources sector remains soft. We see healthy pipeline across various regions in Europe. If I were to call out two, it would be U.K. and Nordics. During our quarter 1, order book totaled $3.4 billion and our large deal booking totaled $1.6 billion. This order booking includes 13 large deals this quarter.

I want to take a minute to highlight two of these deal wins, which are very different from the way we have been seeing the deals that we have been structuring and solutioning for our clients. One, a leading global animal health care provider selected us to modernize and manage their digital operations across global network of hospitals and clinics. Using Wipro Intelligence, I repeat using Wipro Intelligence, we will help transform service operations, improve productivity and enable predictive issue prevention. We are helping this client create a more autonomous technology environment. And the goal here is to improve experiences for their clinical teams, for their employees and of course, customers who walk in with their pets while increasing operational rigor.

In our second deal win, a leading European specialty chemicals company chose us to run and transform their complex application landscape. Leveraging AI-led capabilities through our WINGS, which is actually part of our Wipro Intelligence, we will operate -- automate our operations for the client, improve delivery efficiency, provide greater visibility through an AI-powered digital command center. The outcome is expected to elevate service quality, higher productivity and lower operating costs.

The reason I'm calling out these examples is that they reflect a broader shift in enterprise priorities. Increasingly today, our clients are looking beyond technology modernization alone. The focus clearly is moving towards AI-enabled operating models that improve service quality, reduce operational complexity and strengthen resilience and, of course, unlock sustainable productivity gains. And I can assure you, this is where Wipro is well positioned.

Let me now share a few additional updates. During the quarter, we closed the acquisition of Mindsprint and quickly transitioned from integration planning to execution. While we continue to deepen our relationship with Olam Group, we have also started to see good opportunities in the food and agriculture sector. If you recollect last quarter, we launched AI business and platform unit. Since then, we have moved decisively from strategy to execution. We are building multi AI-powered industry platforms, developing new AI native business models and forging strong partnerships across our AI ecosystems. We have laid the foundation, strengthened the team with specialized AI native leadership talent, defined our road map to establish clear priorities for the next phase of growth.

I want to actually take a moment here to highlight a few more areas where we are making progress and growing our AI momentum through Wipro Intelligence. You would have recently heard of our launch of Applied AI Center of Excellence for Claude models powered by Anthropic. This strengthens our ability to help clients rapidly adopt frontier AI capabilities while maintaining enterprise-grade controls and governance. Capco, our BFSI consulting arm, won the AI Governance and Risk Excellence Award at the OpenAI Partner Summit. Of course, we have to compete with a lot of our competitors there. And our U.K. AI lab won the OpenAI Codex Hackathon for an AI-powered banking solution. These accolades validate our ability to innovate while applying AI responsibly in highly regulated industries. Across markets and industries, we are helping clients reimagine operations by embedding AI at the core of their business, spanning both physical and digital worlds.

So I'm excited to share some examples of work we have already done for some of our clients. One, for a global industrial manufacturer, we are reimagining finance and procurement through our WINGS platform, combining agentic AI, intelligent orchestration, real-time analytics and AI-powered knowledge management to create a highly automated operating model. Second, with one of our healthcare clients, we are deploying multi-agent AI system, reducing provider enrollment processing up to 70%, it has really improved, while automating their manual effort up to 90% Three, for a leading global technology company, we are improving the quality, reasoning and safety of their next-generation AI models through expert-led data creation and AI evaluations. In fact, this is delivering significant gains in model accuracy, which is very important and reasoning capability, which is very important in the new context of AI. And last one, with the life sciences client, our WINGS platform is transforming pharmacovigilance from a document-centric labor-intensive process into a completely AI-native safety operations. This is powered by our autonomous agents and regulatory-grade workflows. which we develop through AI and Wipro Intelligence.

In fact one more I'll take. For a global energy leader, this is very interesting. We are defining their enterprise robotic strategy and road map for physical AI-enabled autonomous operations. So you can see that you have physical AI now coming into action. Collectively, these engagements demonstrate our breadth of Wipro's AI capabilities from a strategy and advisory to being clearly a domain-specific solutions company. It also reinforces our role as a trusted transformation partner in helping enterprises redesign how work gets done. In fact, we have more such examples of the AI work we have done. It's available in our press release if it's a good reading for you, while you're heading back home today.

With that, let me shift focus to the next quarter. In Q2, we are guiding for a sequential growth of minus 1.5% to plus 0.5% in constant currency terms. As we continue to navigate macro uncertainty and, of course, geopolitical instability, our priority is to remain disciplined in execution, helping clients navigate complexity and create sustainable value for all our stakeholders.

With that, let me hand it over to Aparna to share our financial performance in more detail. Over to you, Aparna. Thank you very much.

Thank you, Srini. Good evening, ladies and gentlemen, and thank you for joining us. Let me share an update on the financial performance for the quarter ended 30th June 2026. After that, we will open the floor up for questions and answers.

Our IT services revenue for Q1 grew 0.9% year-on-year in constant currency terms. Revenue declined 1.2% sequentially in constant currency terms and 1.4% in reported currency terms. This was well within our guided range. Our operating margins for the quarter was 16%. The margins declined 1.2% on a year-on-year basis. This was due to the incremental impact of the salary increase. You will note we gave a salary increase effective 1st March 2026, and we've had two incremental months of impact in Q1. We also had some of our large deals that we had won earlier ramp up, and we have several ongoing investments in AI. All of these were partially offset by rupee depreciation benefits and other operational efficiencies that we drove. We remain focused on returning back to our previously stated narrow band over the next few quarters. Net income for the quarter was INR 33.6 billion and EPS for the quarter was INR 3.2. Both grew 0.6% on a year-on-year basis.

Moving on to some specific color on SMU and sector performance. All growth numbers that I will share will be on constant currency terms. Americas 1 was flattish year-on-year basis and declined 2.3% sequentially. Americas 2 declined 7.3% on a year-on-year basis and 2.5% decline on a quarter-on-quarter basis. Europe grew 6% on a year-on-year basis, while declining 0.9% sequentially. APMEA grew 13.5% year-on-year while growing 4.4% sequentially. On sectors, BFSI grew 2.6% on a year-on-year basis, while declining 1.2% sequentially. Consumer grew 0.7% sequentially and 1.9% on a year-on-year basis. Technology and Communications grew 0.2% sequentially and 10.8% on a year-on-year basis. Health declined 3% year-on-year and declined 2.6% sequentially. Energy, Manufacturing and Resources declined 3.6% sequentially and 8.9% year-on-year.

I'll share some quick update on some key financial metrics. Our operating cash flows was at 98% of net income for Q1. Our gross cash is at $4.3 billion as of 30th June 2026. Accounting yields remained stable at 7.2% for the quarter. Our ETR was 22.6% for Q1 versus 21.6% in the same quarter last year.

In terms of guidance, I would like to reiterate what was shared by Srini. We expect revenues in our IT Services segment to be in the range of $2.574 billion to $2.627 billion. This translates to a sequential guidance of negative 1.5% to a positive 5% at the top end in constant currency terms.

Lastly, in our recently concluded Board meeting, the Board of Directors have declared an interim dividend of INR 2 per share. Including this dividend and the payouts in the last 1 year, we've returned cash of in excess of $3 billion over the last few quarters, last four quarters.

With that, I will now turn it over to Nisha for Q&A.

Thank you, Aparna. We'll now open the floor for your questions. For journalists who are based outside of Bangalore who have joined us on Teams, we request that you key in your questions. For journalist who are present here please raise your hand and we'll be happy to give you the microphone. Please, to ensure that everyone has a chance, we request that you'll limit your questions to two and we'll come back to you if we have additional time.

And Ritu, if you'd like to start, you can introduce yourself and your publication and then go ahead with your questions.

I'm Ritu from CNBC TV18. Srini, first on the margins. I mean, even with these wage hikes that you've given that you said has impacted the margins, it is a 15-quarter low. And your guided range of 17%, 17.5%, does that get pushed further? Or what are the levers you have to get back to it? And how quickly could you get there?

Secondly, even in terms of your guidance for the second quarter, minus 1.5% to plus half, it's quite soft. Should we expect any meaningful pickup in the second half of the year? Because even when you compare it to some of your peers that have reported numbers so far, TCS or HCL, yours is one of the weakest revenue growth we've seen. So give us a sense of what you're seeing in the demand environment and the areas where you think you see some pickup in the second half.

Hi, Ritu. So two questions. One is on the margins. I think Aparna talked about it, but let me give you a color to that. There were clearly two reasons why we dropped the margins. One was the MSI impact that Aparna talked about. Second one is we are making a few investments for the future. and some of the things I talked about. So that's one. Second, you asked about the -- how it's going to be going forward. We clearly want to come back to the range that Aparna keeps talking about, and maybe she can give more color to that. But that's the idea. This is a short-term volatility because of some of the investments that we have made and so on and so forth.

Now coming to the revenue forecast or revenue guidance of minus 1.5% to plus 0.5%. A few data points I want to give you. One is, clearly, the demand situation in the market has not changed. And if I look at our pipeline, which I called out is healthy, this is mostly on the cost optimization and vendor consolidation. And the clients are taking the cost out for a lot of investment going into AI. So the discretionary spend is becoming more intense, and it's also something that we are watching out. That reflects our Q2 guidance, taking that into consideration.

Having said that, for the quarter 2, at this point in time, if I were to look -- give a little bit of a color from a market perspective, Americas, if you look at it, BFSI, we are seeing a good momentum going in. If you look at Europe, it will be -- I would call out Europe and APMEA I would call out energy and manufacturing resources, which has been very soft, which is very specific to Wipro. I'm just calling out what were the two soft sectors that we had. So those are the things that we are working on.

Now as you know, Ritu, we don't give a guidance for the full year. We just give a guidance for the next quarter. All I can tell you is that the pipeline, the demand situation is there, but there is also uncertainty. So we have baked that into our quarter 2 current guidance, Ritu.

You didn't really answer. You didn't really answer. The first question was on margins, the levers you have to get to our guided range and how quickly can you get there?

Absolutely.

So, Ritu, you've seen our ability to bounce back on the margins in a very, very weak revenue environment over the last two years, we've actually improved our profitability quite a bit from about 15%. We took it to the range that we had set of 17% to 17.5%. What has happened is the two months incremental increase of wage hike, this will take a few quarters for us to recoup. And this is a normal business course.

Of course, it becomes a little more challenging in the backdrop of a weaker revenue environment. But we have both the traditional player levers and AI coming in. Our fixed price programs, the productivity takeout, what we are going to take brings and Viva to each of the programs that we are delivering, and there will be cost takeout. That's a very, very important lever, and we are very confident about that.

Second is, obviously, the traditional levers, right, that kick in. We have been investing our utilization, if you look at it year-on-year, has dipped because we are investing for some bit of growth. Over a period, as these deals ramp up, we will be able to take our utilization up. We will be able to work on our pyramid, and we will use the traditional levers as well.

There is also a situation with the operating leverage that plays out. So we will continue to optimize some of our overheads in G&A, which we will continue to do. So these will be the levers as we look ahead. We will have to do -- we'll have to exercise these levers, but we'll also have to invest for growth, right? So therefore, I don't want to put a time line to it, but you've seen our strength. We can bounce back and we will bounce back, but prioritizing growth first.

I hope that answers the question, Ritu. So, operational improvement, leveraging AI. At the same time, we want to continue to invest for the future.

Can we have the next question from Sai?

This is Sai Ishwar from Reuters News. Srini, just two questions. So your Americas 1 and 2 has declined. So it actually kind of says that 2/3 of the business is under decline. So could you tell us what has changed here? Because if you again compare it to your peers, both of them had very good numbers in Americas. So I just wanted to ask that.

And if you could also talk about what percentage of your revenue is from AI because a lot of the other companies have been calling out that separate number. So if you could at least give a range, if not a specific number pinpointing there.

And also, I just wanted to ask a broader overall question. So if you see the guidance for this quarter, then like for the last two years, Wipro's revenue growth has been on decline. So you would have to bounce back even stronger in the second half of the year, right? So any specific game plans you have there, anything you -- instructions you've got from the Board? You've also spoken about the specific AI unit yesterday in the AGM, right? So any plans you could tell about that, which could probably make Wipro stand out and probably make this year stand out and grow?

Sorry, with your permission, I'll ask Aparna to answer the question number one. I'll take the two and three. I hope you're okay with that.

Sorry, could you repeat the first question?

Americas 1 and 2.

Americas.

So that's a big piece of your business. How do you explain that?

Yes. So in terms of the growth in Americas 1 and 2, if you look at it, Americas has been growing fairly strongly for us over the last several quarters. We are seeing a decline because of certain client-specific issues. We do expect Srini referred to a lot of large deal good wins into the consumer segment, and we will continue to see that vertical grow.

We are also seeing some impact of the budget spend cuts in the healthcare sector that is impacting the work that we do in our HPS platform work in the ACA business. That is also playing out. But overall, if you look at it, health care, we continue to have a very strong presence and a very strong set of solution offerings. So we do think A1 will bounce back. If you look at our technology and communications vertical, you're seeing a double-digit growth. That's also powered by our performance in A1. So quite a few bright spots there. We do see there are some headwinds, but we're confident looking at the pipeline.

On A2, EMR remains a tough spot for us. As Srini mentioned, BFSI, as we look at the next quarter, we are seeing -- we are more hopeful for growth to return, and we are seeing some momentum pick up. Our pipeline is good. In EMR, the pipeline is good, but we do certainly need to improve our win ratios. And when that happens, you will see a more secular bounce back. But for now, A2 has been weaker for us.

Thanks, Aparna. So from an Americas 1 , just to double-click, the healthcare in the U.S., where we have a big presence on payers and providers is going through some kind of a transition. So I think that's also kind of impacted for us this quarter.

Now getting back on the -- first, I'll talk about what we are seeing our plans and then the revenue aspect of AI. So if I look at from a plan perspective, right, we clearly said our vision is to pivot to AI. We said it's going to be through consulting-led and AI-powered. And our execution will be through Wipro Intelligence platforms and solutions, which are delivery and industry platforms and cross-industry platforms. So that's where we are heading with.

Second is in terms of the investments that we are making, we are making four key bets. One is AI native unit that you talked about. Sai, where are you? There you are. So I was trying to make an eye contact. This light is hurting me. So I'll try. So one is clearly our AI native unit, where we are investing to build next-generation industry platforms across the sectors and industries where we are dominant, whether it's health care or whether it's transportation and so on and so forth, we picked up. And these are AI native platforms, and there are also certain platforms we will modernize and make them AI-powered. Second, we are also picking a few industries where we actually want to build SLMs for that particular industry, and we will partner with them. So that's number one.

The second investment that we are doing is clearly our Wipro Innovation Network. We invested in 10 innovation networks globally, and we are co-innovating with our clients around that. And within the innovation, one is the biggest theme right now is AI, Agentic AI, but we're also working towards digital ledger technology that's moving on. While quantum is way ahead, but we are investing in quantum space, space tech and so on and so forth. So that's another very key bet that we have taken.

The third one is what I call as the ecosystem partnerships, right? We're going to bring a very strong partnerships with our frontier AI companies. And I mentioned some of them in my speech as well. And we are trying to disrupt that market using their AI LLMs industry by industry, the award that we got from OpenAI is for a very specific banking solution, right, and also the Hackathon that we talked about.

The fourth one is Wipro Ventures. It's $0.5 million -- $0.5 billion investments, and we are making significant investment into AI, data and cybersecurity. These are all interconnected because this is how we can pivot ourselves to AI.

And then I've been talking about consulting-led AI-powered Wipro. In consulting, clearly, BFSI is our business line for all the BFSI customers from a consulting perspective. We are strengthening in EMR, telecom and technology, health care, where we are very dominant with our platforms, right, and also consumer. So that's our broad strategy and the plan, and we'll stay focused. I think very important for us to continue to sense and respond to how the technology is shifting, right? And we are investing as part of the AI native on the forward deployment, forward deployed engineers because forward deployed capabilities becomes very critical.

Today, having a conversation with the client, what is very important is having the client contest, understanding the domain and the process and then making sure you prime the data for the right solution through all the levers, only then AI becomes really productive. And we must be hearing, right, there are a bearish view of AI. There is a bullish view of AI. I would say that AI in the long run for Wipro and for the industry, will create a lot of new AI services.

And that's another area where we are investing today. whether it's sovereign AI, whether it's to do with agent implementation and management, whether it's to do AI DCs, whether it's to do with tokenization, I can go on and go on. But these are the conversations we are having with the clients. And these will be first consulting-led, proof of concepts, then take it. And also, please understand we have to balance with the human cost and the token cost, right? So it's just not that you bring in AI and everything works. So the world is going to be human plus AI. I think that's where we are focusing on our talent, upskilling our talent, right? So we are basics, we are advanced, we are professional. We are actually working with our frontier AI companies to train our people. But more importantly, we are working with the client to understand that has a better client context, process, domain, data knowledge. So this is our broad strategy, right? And like I said, we made good progress on the AI native unit as well. So that's where we are.

Now coming to the percentage revenue of AI, this is a debate we have had quite a bit, right? We saw the world when the digital came in, right, digital transformation. Suddenly, everyone's revenue went 80% digital, right? So to be very honest with you, I'm like -- if you look at our Wipro Intelligence, whether it's a run and operate, we do it with AI-first conversation. Whether it's a software development life cycle, which is build AI or whether it's to do with what I call as a package implementation or product engineering, you do AI first. And then the reimagine AI services, right, which is the whole aspect of AI advisory, consulting, change management, everything you have to think with AI. So I'm like every SOW has an AI. Every SOW has WINGS or WEGA. Every statement of work that we do, we have agent. So you can go other extremes. So I'm telling the clients -- I'm telling our teams because what is important is what is the return on investment the client gets on each of the projects and program. That's why I talked about two plus five examples today because they are AI. And that's going to change the world. So I don't know whether I would want to call out percentage of AI revenue.

So a long answer for your very small short question, Sai. I hope I answered it in more detail. Ritu, see this is our.

Rishabh, why don't you. Just a heads up that we are running a bit behind schedule. So if you could limit your questions to two, that will be helpful.

Nisha is also giving me a cue of shorten your answers. I'll take it.

Rishabh here from Moneycontrol. Two questions for you, Srini. How has the TCV conversion been since there's investor worries concern around this for the entire IT industry.

Another one is one of your peers said that AI revenue is likely to remain lumpy as most AI engagements are one or two quarters. So how is -- are these AI deal tenures turning out for Wipro?

So I have a question for you, Rishabh. Where did you hike?

Netravati, I went.

Good, good. So I'll ask Aparna to answer the first question. I'll do the second question. TCV conversion to revenue.

So again, we've said this before as well. There are a few deals that come, which are very -- where we take on services from our clients on day one. Those deals typically convert absolutely as per schedule immediately on time. And we've had a large share of such deals which have ramped up. I also mentioned that these deals are also lower profitability in the first two years. They've ramped up. Some of them are impacting our margins, right? So that conversion is pretty good.

As far as there are some deals that we win where we have to builds that revenue as our clients consolidate and they ramp up, they look at newer programs, projects and that kind of then ramps up over several quarters. Of all the deals that we had declared last year, there have been a couple where we didn't think the conversions panned out in line with what we had thought, but all others have been converting. In fact, some of the large mega deal wins that we spoke of last year same time, have begun to convert and are likely to convert even through the next few quarters. They've been delayed, but they are beginning to ramp up, and we are seeing the flow-through coming.

Yes, we've had one or two where the customers had a change of plan, and therefore, we've not had those conversions. Those are typically the factors that really impact. But I would say nothing out of the ordinary, right? The conversions have also been weak over the last two to three years because discretionary spends are lower.

So as you keep booking the new, some of the existing work that you would typically get quarter after quarter, those spends have come off, and therefore, you're seeing, in some sense, those not reflecting in the growth immediately. And sometimes all of us talk about TCV, which are longer tenure, but what revenues represented is ACV, and that's a different context.

So yes, so some of those are the reasons why it's difficult to draw an immediate correlation between a booking growth and a revenue growth. But we remain very disciplined in the way we book, and we are also very disciplined about how we track conversion. And I can tell you there is nothing very amiss in that.

I'll keep it short because Nisha has been looking at a long answer that Aparna gave. I'll agree with my colleagues. Is that a good answer?

Some more color to it.

Do I have your permission? Okay. So yes, if you look at AI projects, then it is also sometimes get equated to the discretionary spend, which is where our reflection of our guidance is reflected in quarter 2. Some of these projects are also waiting for cost takeouts and other aspects. Because the overall IT budget is not dramatically going up, but the shift to AI is going up significantly. But somewhere the executives have to take the cost out and put the cost here.

But the way I see it is that more and more clients are dramatically looking at AI. I think there's a report that says 75% of the CEOs are actually getting into AI decision-making. But having said that, the CFOs are worried. My token consumption has gone up, but I'm not getting the return on investment. So there is a balance that is playing out. But I think it will stabilize very soon because like the way the digital happened, right, AI also would happen. And so I think midterm to long term, it will be very stable. Short term, it could be a little bumpy. I'm using the word bumpy.

Shristi from Economic Times. So I have a couple of quick questions. One on the numbers. Last quarter also, we saw a sequential decline in BFSI similar to this quarter. So last quarter, Srini, you mentioned it was because of delayed ramp-ups and client-based issues. So I want to know if it is the same continuation of those issues? And when are we likely to see some improvement in.

Second question is, I also wanted to understand as far as your partnerships with firms that you mentioned. While that is happening simultaneously, it is also a case in the market where access to a lot of these models, especially the high-end models like your Mythos, Fable, that is very geopolitically constrained and you don't quite get access to that or nations put a cutoff cost on it. So do you think that such partnerships will still help you? I mean, is it enough to leverage your connection with them?

And third question for Saurabh. I wanted to understand, last quarter, you said that there is no hiring targets you've kept or even for freshers. Is that a continued decision you're making? Or are we likely to see more hires on board even as far as freshers is concerned?

So, Srini, I will take the first question on this and...

She wanted to take it, Shristi. So I hope you're okay. Go ahead.

Okay. I wanted to say that BFSI as a sector, yes, we have had some challenges in Americas. But if you look at the growth across Europe, APMEA, even our Capco business has been pretty robust. We actually grew year-on-year despite having a weaker growth print in Americas. That said, you're right, we had called out a client-specific issue. That should be behind us in Q1. And that's why we are sounding positive about the momentum that's building up in quarter 2.

I also called out specifically Americas, BFSI, which is coming back. So hopefully, we'll go -- those deals that we have won will start showing.

Coming to frontier firms, our partnership with them. Let's put the client context instead of putting the Wipro context or a partnership context. As a client today, right, I need to have the flexibility of which model to use. do I use a very expensive model or do I use an open source model. Second, for a particular workflow or a particular process, how mission-critical is this for me to use a very high expensive LLM versus open source, right? So these are the conversations that we are having with the clients because the token costs are dramatically going up.

So, for us, when we have the deeper knowledge of all these frontier firms, we are actually able to go and tell them, hey, what's the right way to do it? And the fact that we are deploying this industry by industry, and we are actually talking to the executives and saying, do you really need this? Why can't we look at this, right? So I think that's the biggest role services companies like us can play. And that's where it's very important for us to have these partnerships and have a depth of it. So for example, OpenAI, with the Hackathon award that we got and the fact that our lab got an award in terms of the solution that we built, we are now deep into OpenAI, right? So knowing that when you're having the conversation with the client, you can tell them out of possible and why and how.

Similarly, the Claude Center of Excellence that we built where we said we're going to train 10,000 employees around Anthropic models. It's very important because you talked about Mythos, right? It will come in soon, sooner than later. But this team is ready once these models come in. And let's also be honest. The release cycles of these models were months to weeks to now days, I'm not so sure it may go into hours too. So you have to be ready with having that depth.

So the world, the future world is going to be dramatically constantly changing. So organizations like us, we have to bring in tech depth. So for that, we need to have these partnerships. And for that, we need to build specific industry solutions, and that's the direction that we are going.

On the last question on hiring, actually, our stand doesn't change from last quarter. We will continue to look at the demand environment and take a call. So we are not calling out any number right now.

Not even for freshers?

Not even to fresher. Otherwise, lateral hiring depending on demand for specific skills continues.

Uma Kannan from Deccan Herald. Srini, you were talking about investments and partnership. So I just want to understand, do you have any plans to invest in AI start-ups because you are mentioning about it, you have some investment plans. So are you considering on that front? And then are you seeing any shift in your client spending patterns due to AI? And are you able to close large deals as expected?

Sure. So, Uma, I think a very good question. We are beginning to investing into start-ups. And this we do through Wipro Ventures, and I did call out saying this is one of our key bets going forward. So if you look at Wipro Ventures today, we have invested into AI companies, into data companies and cybersecurity companies. And this, we are doing it across the world.

So the advantage that we have is as an early investor, two things. One is you get to be -- have a seat in the board. So you know what's going on, how the technology is shaping. They are also frontier companies. Their tech is changing. Every month, the product is dramatically different. However, they are not able to reach the clients, large enterprises. So we actually partner with them and take these solutions that they build, the AI solutions that they build to our clients. And because the clients trust companies like Wipro because they've done it, not a start-up company. So we are big into AI start-ups. So I just want you to know, but we do it through Wipro Ventures and that's a dedicated $0.5 billion.

Coming to shift in client-specific spends, like I said, the best way for me to reflect is how my pipeline looks, right? So if you look at across my sectors, across my countries, like I said, there's a huge pipeline still of cost optimization and vendor consolidation. But having said that, we are also seeing a good uptick on reimagine AI, which is around trying to reimagine our customer processes to bring in the benefits that I did talk about it. And that's an ongoing basis. And that shift continues to happen, but it is a lot more subtle right now because they're not big deals right now. But the big deals are still our traditional deals, but AI powered.

Go, ahead, Mansee.

Mansee Dave from ET Now, ET Now Swadesh. So nice to be talking to you again. Srini, my first question to you is on the deal wins and its impact on the revenue growth. So [Foreign Language] in spite of good deal wins, the revenue growth has been in line or let's say, a little bit of a concern. [Foreign Language]

I think you gave me the question and also the answer. Honestly, that's what you did, right? So yes, we had 13 large deal wins. We did a $3.3 billion of booking out of which $1.6 billion comes from large deals of those 13 deals and one of them is Mindsprint as well. But having said that, we are bang on. Some of the deals like Aparna talked about is taking time for ramp up. So when you don't ramp up, bookings don't convert to revenues. Some of the ones which were done in a few quarters back, they have suddenly started picking up, especially the BFSI one, which we talked about, the mega deal, which is we're seeing a momentum go up.

And I think discretionary spend is also -- is going slow at this point in time. And I would say the demand environment from last quarter of my commentary to this quarter has not changed, okay? And whenever we give a guidance because we are the only ones who give quarter-to-quarter guidance, and we give that guidance based upon what we see, right, in terms of the spend and how the clients are consuming.

So to me, while yes, we are giving a minus 1.5% to plus 1.5% growth guidance, but we have baked in. From a long-term perspective, I think the investments that we are making and as the market matures on AI consumption, AI implementation, we should be able to hitch onto that bandwagon. So we are keeping both the current track and the future track together.

Aparna...

Sorry, Mansee, we'll have to come back to you just so we can have everyone get a chance. So we will come back if there is some additional time. Padmini, do you want to go ahead?

Padmini from The New Indian Express. So, you mentioned about incremental...

Sorry, I didn't get the name.

Padmini from The New Indian Express.

Yes, Padmini. Go ahead, Padmini.

So, you mentioned about incremental AI revenue, right? So is this still coming from reallocating existing IT modernization budgets? And are these AI projects converting sooner than traditional deals?

And secondly, there's a lot happening now in India, right, and your peers are investing in data centers. So what are your investment and growth plans here?

Okay. So I think I'll repeat the investment plan, but with specific to data centers you asked, right? So I explained to you the four key bets that we are taking. Now as far as data centers are concerned, our focus is on creating AI DC solutions for our clients. So we will design, we will architect, we will implement, we will maintain for our clients in the context of AI DCs. Second, what's also picking up quite a bit is what I would call a sovereign AI, right? Because every country is now worried about the data, data security. That's another solution that we are doing. So our focus is in creating services around AI DCs, creating services around sovereign AI, right? And we'll have partners as we move forward.

Coming back to your question on incremental AI, incremental AI budget. I think, like I said, the clients' overall budgets have not dramatically shifted, but investment into AI is happening. When you say investment into AI, there are multiple ways. So total cost is one of them because a lot of clients have got -- I'm sure you must be using some AI tool as you're recording this meeting and then you'll have something going on. So it is a cost, right?

So to me, as that cost settles down, clients will -- as we redesign the customer processes and implement AI, they will dramatically see the return on investment. And some of the examples that I gave is exactly that. So I think that's where the market is. And I think as I talked about the lumpy AI demand somebody talked about, and that's the reason why it is that is. To me, in the next few quarters, that should settle down.

Rohit, please go ahead.

This is Rohit from Businessworld. I wanted to kind of ask you about Mindsprint, Mindsprint acquisition, and how that workforce integration is kind of happening. If there are any redundancy that you see perhaps retraining or attrition risk from overlapping roles?

And the second question is on Alpha Net Consulting deal. There was a slippage there from June to September. Any reasons, if you can give us any impressions?

So let me talk about Mindsprint first. We are very excited about this partnership with Mindsprint, right? It's -- the partnership is with Olam and also the acquisition of Mindsprint. First and foremost, I think we are very happy to have welcomed those colleagues, and they're doing very well. Thank you for asking. Second, they bring in a very unique capabilities. they have a very good understanding of entire supply chain from farm to fork to be very clear. So they understand the supply chain within that agri business. They have a complete view of how the workflows happen from an end-to-end. They also have a good, strong capabilities around trading. And as the world is looking at food security, especially in the parts of the world where agriculture doesn't happen, this is a game changer for us as an organization.

So to me, personally, I'm very excited about Mindsprint, and we can differentiate and provide different value, and they come with a very different capability. And I've been to the innovation center last quarter, and they showed me about the kind of AI-based solutions that they have built, especially for agri industry is phenomenal. Alpha Net?

There is no surprise in terms of the Alpha Net. I know there was a little bit of a delay, but it's come through. So we are not worried.

Go ahead, Poulomi.

I'm Poulomi from Financial Express. Firstly, I'm just curious about the impact that you saw of AI-led deflation on traditional services revenue? And also, can you share the percentage of productivity gains that you passed on to consumers -- to customers? And also about fresher hiring, can you disclose the number of freshers hired in the quarter gone by?

So, to me, first, at a very broad level, AI for the industry and for companies like Wipro is a structural opportunity. So I want that as a broader context to keep in because when you talk about AI, people have different connotations to that, number one. Number two, the biggest productivity benefit we get is in the software development life cycle, but it depends on which stage of software development life cycle we are in. If it's a completely greenfield using Python, you can get significant productivity benefits, right? But if it's a complex program where you have to modernize and when you deploy into production, it's complex, the productivity benefits comes down. So it varies. So there is no one rule. If you read the literature, you can ask your AI agent to read the literature and give a productivity, then it will start giving you sub-tech.

So to me, productivity and software development life cycle, product engineering life cycle is dramatic. Second, again, it depends upon what phase you are doing. Second, when we do run and operate, we can bring in more and more agents identification. That's what we do with our WINGS, which is agentic system for run and operate product lines, whether it's application infrastructure or process. Do you want to talk about fresher?

Yes. So we didn't take any freshers in Q1. We had spoken about it earlier.

Sanjana from The Hindu Businessline. So I think the APMEA vertical has seen healthy growth, and this is despite the Middle East being part of the overall region. So what went right with this particular region? Are you seeing that the kind of uncertainty because of geopolitical tensions is coming down? And also, I think even as part of the AGM and today, you have emphasized Wipro's consulting-led AI-powered approach. How is Capco playing a part of this? If you could just emphasize how it's central to the strategy?

No, Capco is a strategy for entire BFSI segment, okay? And I'm extremely happy with the capabilities that they have built, and I talked about some of the wins that they have had with -- working with the frontier companies. I think they are a big differentiation for the market, right? And so I answered that question. I know, Nisha, you need to answer.

When I look at APMEA, Middle East is just a part of it, right? It's a huge territory. So whether it's India or Australia or Singapore or Far East, right, there are multiple places. And for example, South Korea, right, Japan. So those are the multiple countries that we have. So the growth is coming in from there. Having said that, Middle East, right now, it's folding.

We have time for one final question. So, Avik, please go ahead.

Avik from Business Standard. Just two questions and one to Saurabh. So the ratio between your TCV and the large deal wins, of course, that has gone up over the last couple of years under your watch. But just to understand that is there a challenge in getting those smaller AI deals that sort of keeps the machine well oiled and keeps the recurring revenue coming with? I think that's where Wipro may be struggling, where large deals, of course, are coming in, but we also know that it comes with its own sets of challenges, ramping up margin pressure. So if you can just give me some heads up as to what's happening with those smaller deals. And the BFSI bit, do you think it's going to perform better in the second half? Because we heard of the challenges that you talked about that Aparna also talked about. So if you can just throw some light there.

BFSI.

Yes. And Saurabh any numbers that you're putting on those FDEs, that's a flavor of the season. Everybody is calling out numbers. So are you looking to in terms of hire specific FDEs or build specific talents on FDEs, and you didn't hire any freshers in the first quarter, but are you still sticking to the conservative tone of not calling out the fresher hirings for this year?

You go ahead, and I'll answer that.

Okay. So yes, I called it out earlier, we didn't hire anybody so far. We have a good inventory of freshers. We hired about 7,500 people last year. And depending on the demand environment, we will relook at it. So we are not calling out any numbers.

On FDE, it's all pervasive. We don't want to give a number at the point where Srini said that AI is in everything. We don't want to call out percentage of AI revenue. Same stands here. Our intent is to develop our workforce to become more on FDE. How can we upskill our people at different levels, and that's the endeavor. I keep it short, but that's how we are approaching it.

So, Avik, I think your question also had an answer, right? And I agree with what you said. So, for us, it's a two-pronged strategy. One is the large deals and large deal takes time to close. Large deal takes time to sometimes ramp up, and that's what we've been talking, right?

But having said that, I would say the single -- since this is a cricket country, I can talk about 1s, 2s and 4s and whatever it is, right? Sometimes we have 3s also. So having -- there are two strategies there. One is the sales team as they are mining the account. Other one is the delivery team trying to look at adjacent areas. Those are the small deals. Yes, we look at the large deal pipeline. We also look at the small deal pipeline because in any account, if you have to cross-sell and upsell, sometimes it's delta, you land and then you expand, right? So I'm absolutely with you, Avik, and that's our game plan.

I wouldn't want to say that that's a weakness of Wipro because I've been in this industry for a very long time. I love both. Anything -- every dollar -- because our colleague is there from [ Manasa ] is there [Foreign Language] So every dollar, improvement in my Hindi. Okay. Go ahead, Nisha.

Thank you, everyone. We will have to conclude our Q1 FY '27 earnings press conference. For all follow-up questions, please reach out to the external comms team, and we'll be happy to help you. Thank you all, and we'll see you next quarter.

Hello, and a very good morning to everyone. I am Rishad Premji, Chairman of Wipro Limited. On behalf of our Board of Directors, I welcome all of you to this 80th Annual General Meeting of the company. This meeting is being conducted through video conference as per the circulars issued by the Ministry of Affairs and SEBI. Since the necessary quorum is present via video conferencing, this meeting is officially constituted. I now declare this meeting open.

Before starting the proceedings of the meeting, let me introduce you to people who are present here today, along with me in Bangalore. To my right is Aparna Iyer, Chief Financial Officer of Wipro Limited; Mr. Deepak Satwalekar, an Independent Director; Ms. Paivi Rekonen, Independent Director; and to my left is Mr. Srini Pallia, the Chief Executive Officer and Managing Director of Wipro Limited; Mr. Sri Naidu, an Independent Director; Ms. Laura Miller, an Independent Director; and Mr. Sanaulla Khan, the Company Secretary. Mr. Azim Premji, the Founder Chairman, has joined us for the AGM through video conferencing from Bangalore ; and Mr. N.S. Kannan, Independent Director; has also joined us for the AGM through video conferencing from Mumbai. In addition, we have Mr. Anand Subramanian, Partner, Deloitte statutory auditors; and Mr. V. Sreedharan and Mr. Pradeep Kulkarni, Partners at V. Sreedharan & Associates, who are secretarial auditors who have also us today.

I request Sanaulla Khan, Company Secretary, to inform the members about the arrangements which have been made at this AGM.

Welcome to the 80th Annual General Meeting of Wipro Limited. The company has enabled the members to participate at the 80th AGM through the video conferencing facility, and the proceedings of this Annual General Meeting are also being streamed live for the benefit of all the members as per the details provided in the notice to the AGM. The proceedings of this meeting are also being recorded for compliance purposes.

In accordance with the provisions of the Companies Act 2013 and the SEBI listing regulations, the members have been provided the facility to exercise their right to vote by electronic means, both through remote e-voting facility and e-voting facility at the AGM. Remote e-voting facility was made available to all members holding shares as on the cutoff date that is Wednesday, July 8, 2026, during the period commencing from 9 a.m. Indian Standard Time on Saturday, July 11, 2026 till 5 P.M. Indian Standard Time on Tuesday, July 14, 26. The remote e-voting facility has been closed from 5:00 p.m. Indian Standard time onwards on July 14, 2026.

Members who are joining the meeting through video conference who have not already cast their vote by means of remote voting, may please work through InstaPoll e-voting facility provided at the end of this meeting. The members have already cast their vote by remote voting prior to the AGM shall not be entitled to cast their vote once again.

The Board of Directors has appointed Mr. V. Sreedharan Partner, V. Sreedharan Associates as the scrutinizer for the purpose of this Annual General Meeting. Based on the reports of the scrutinizer, the combined results of remote e-voting and the e-voting done at the meeting today will be announced and displayed on the website of the company and will also be submitted to the stock exchanges as per the requirement under the SEBI listing regulations.

The register of Directors shareholding, the register of contracts copies of audited financial statements et cetera, are available for inspection to the members electronically. Members seeking to inspect such documents can send an e-mail to corp-secretarial&wipro.com.

I now request Mr. Rishad Premji, Chairman, to continue with the proceedings of the meeting.

Thank you,Sana. I'm satisfied that all efforts feasible under the circumstances have been made by the company to enable members to participate and vote on the items being considered at this meeting. Before we take up the items as per the notice I would like to inform the shareholders about the performance of the company during the financial year 2025, '26 and the general outlook for the IT sector.

Good morning, and thank you all for joining us again. This year, we, as a company, Wipro turns 80, 8 decades is a remarkable milestone. Few companies remain relevant across multiple areas of change and technological innovation. From a company founded [indiscernible], our partners and our employees that they continue to place in us.

In previous years, I have used this forum to walk through my shareholder letter. This year, rather than repeat what many of you have already read, I would like to spend a few moments reflecting on the year behind us and then discuss a topic that is shaping the future of our industry, artificial intelligence. Let me first begin with the performance for the company for financial year '26.

The industry remained cautious throughout the year in prioritized efficiency, consolidation and cost optimization even as conversations shifted towards AI and modernization. In this environment, we remain disciplined. Revenue declined 1.6% in constant currency to $10.5 billion. The IT services operating margin improving our payout ratio for the block of the 3-year period ending financial year 26 to 87.8%, ahead of our committed target of 70%.

In April, the Board approved a INR 150 billion share buyback, our largest ever, reflecting our commitment to return substantial operating cash flows to shareholders. At the same time, we continue to invest in AI capabilities, platforms and talent, while maintaining our focus on margins and cash generation.

One of the questions I'm asked most often today is what AI means for companies like Wipro and for the technology services industry at large. We believe AI represents one of the most fundamental shifts of our time. Alongside efficiency gains, it is creating new opportunities for innovation, transformation, and growth while accelerating demand in areas such as data, modernization and AI-powered IT. Our clients have moved beyond pilots and began embedding AI into core business processes and operations.

The focus is shifting from experimentation to execution. We are already seeing the effects of that shift in the nature of the work that we see. In operations, the role of people are shifting away from routine transaction processing towards exception handling, compliance, insight and decision support. In technology, AI is changing the economics and speed of modernization and software engineering thus creating new pools of growth.

But this truly is easier said than done because real enterprises are complex, the technology states processes and operating models have evolved over decades within regulatory authority and operational constraints. Realizing business outcomes from AI is more than just deploying technology. Organizations must reimagine processes and workflows, they must modernize data and enterprise architecture, all while taking people along. For most organizations, this will not be a single project or system deployment. It will be a journey of transformation over time.

Along that journey, organizations will need new capabilities, new operating models, and new ways for people and AI to work together, all underpinned by responsible AI and governance. Helping enterprises navigate this complexly while deeply understanding their particular unique context will require the technology services industry and Wipro to be at the heart of this transformation. This is where we believe as Wipro, we bring a distinctive advantage. It is an advantage built over time.

Many of our client relationships span years and, in some cases, decades. We have worked alongside clients through multi-technology transitions. We understand their businesses, their operating environments, their processes, their systems their priorities and most importantly, have built trust with their teams over years.

So what are we as Wipro doing? We continue to invest in AI capabilities, platforms, partnerships and talent. Our AI approach is anchored in what we call Wipro Intelligence. Our unified suite of AI-powered platforms, solutions and transformative offerings. Through Wipro Intelligence, we see the AI opportunity across the sector. WeGA is our AI-powered engineering platform that helps modern ology estates accelerate software development and transform how applications are built and maintained. And as we help clients reimagine their businesses through new capabilities and offerings that unlock new sources of growth, innovation and value.

At the start of this year, [indiscernible] financial in we also stated the program reduced migration effort by close to list processing while improving turnaround times and operational efficiency. We are seeing this transformation happening in operational efficiency. We are seeing this drag. We are seeing this transformation happening within Wipro as well with us being client 0.

AI is helping us simplify and accelerate important business processes. As an example, in the finance function, monthly financial closing cycles have reduced from 24 hours to 8 hours. Planning activities that once to a month can now be completed in 5 days. These gains are not just about efficiency. They enable faster decisions and a better use of human expertise.

At the same time, we continue to invest in talent. A significant majority of our workforce has completed advanced AI learning pathways, and we are building and scaling new roles and capabilities such as exponential engineers, AI architects, and FTEs or forward deployed engineers. While we continue to invest in our business and our people, our commitment to sustainability and community remain equally resolute. Renewable energy now accounts for 94% of our operations, putting us on track to reach 100% before 2000, which is our target. We reduced absolute freshwater consumption by 4.6% despite higher return to office levels, and we recycled 98% of our waste.

Nearly 31,000 employees contributed more than 35,000 hours of volunteering through our Be the Change Platform. Since financial year '21, our initiatives have now touched nearly 6 million people across more than 20 countries. As we look ahead to our ninth decade, I remain confident in our ability to adapt to the change while staying true to the values that define us. That confidence does not come from knowing exactly what the future will look like or what the future will look like. It comes from the strength of our people. It comes from the trust and depth top line relationships.

I will now invite Srini Pallia, our CEO and Managing Director, for his comments. Srini, over to you.

Thank you, Rishad. Hello, everyone. This year's master 2 important milestones for Wipro. Like Rishad said, 80 years since we were founded, and 25 years since we became the first Indian IT services company to be listed on the New York Stock Exchange. These are not just milestones. They are proof of our ability to adapt and stay relevant through constant change. Our journey has been built on long-term relationships deep client trust and by evolving alongside our clients.

Today, as AI adoption accelerates. We are moving forward with clear intent. AI is reshaping how companies operate, compete and grow. Of course, the pace of change is accelerating and expectations are much higher. For us and for everyone, the focus is on measurable results and sustained business impact. Our clients are looking for partners who can reimagine with AI, helping them modernize their technology state simplify complexity and make AI work safely and also effectively across the enterprise.

Let me now summarize our financial performance before sharing more updates on AI. For FY '26, our IT services revenue was $10.5 billion, a decline of 1.6% in constant currency. Our bookings grew 14% to $16.4 billion. In fact, our large deal bookings grew year-on-year to $7.8 billion. We also won 4 deals with TCV over $500 million. Overall, in the last financial year, we closed 50 large deals. We also expanded our operating margin to 17.2%.

Well, to reinforce what Rishad said, we continue to make targeted investments for the future. We set up AI native business and platforms unit to deepen our AI focus. We are investing in building AI capabilities as we pivot towards a platform plus services model. We have committed $500 million to Wipro Ventures to invest in frontier start-ups across AI, data and security, allowing us to co-innovate and deliver differentiated value to our clients. In fact, Wipro Ventures helps connect our clients with emerging technologies and dynamic startups, bringing those innovations to solve real-world industry challenges.

We have strengthened our ecosystem through partnerships and by closely collaborating with frontier labs, AI leaders, startups and global academic institutions. We have set up joint parter labs and centers of excellence. Our investments in the Wipro Innovation Network continues with the launch of 10 labs globally in the last 1 year, to accelerate co-innovation with clients. Through this network, we are investing in fraud tier technologies, including fully autonomous agent AI, physical AI, quantum computing and space tech.

We have recently set up an applied AI center of excellence for Claude models powered by Anthropic. Our U.K. AI lab won the open AI Connex Hackathon for a consulting-led AI forward banking solution. While Capco or BFSI Consulting business unit, on the AI Governance and Risk Excellence Award at the Open AI Partner Summit. Together, these accolades and investments validate our ability to innovate at the frontier while applying AI responsibly in public enterprise environments.

In fact, beyond AI, we have made other strategic bets to shape our future. One, the acquisition of HARMAN's Digital Transformation Solutions, which is now part of our engineering global business line strengthens our engineering and platform capabilities. In fact, it boosts our portfolio with AI-led, end-to-end engineering solutions across key industries and sectors, specifically health care, high-tech and industrial manufacturing. It brings in deep expertise around connected assets for smart factories, patient care and eminent network security. It also strengthens or design to manufacturing offerings and has opened new markets for us in South Korea.

We also continue to drive deeper, multiyear end-to-end AI transformation programs. Our partnership with Olam Group, along with the acquisition of Mindsprint, strengthens our position in supply chain and agribusiness, expanding our ability to deliver AI-powered, IP-led and domain-centric transformation across form to 4 value chain while opening new growth opportunities in this sector, architecting Wipro around AI.

Enterprise AI opportunity is not just about models. In fact, it is about understanding where work happens, where constraints exist and where value can be unlocked. At the core of our AI strategy is Wipro Intelligence, our unified suite of AI-powered platforms, solutions and transformative offerings. In fact, Wipro Intelligence gives us a common execution foundation. It brings together platforms and in industry solutions along with partner innovation to drive delivery capabilities to enterprise scale outcomes.

Wipro Intelligence also leverages frontier AI models into enterprise-grade solutions and workflows. Through WINGS and WEGA, which Rishad also talked about, our delivery platforms within Wipro Intelligence, we are integrating AI across operations and software development. AI is now central to all our engagements with several hundred deployed enterprise grain agents driving automation, productivity and tangible client outcomes.

Success in AI is not driven solely by model. It requires integrating domain, process, data, cloud, security and of course, organizational change management. When these elements come together, transformation becomes real. Our Reimagine AI services include air consulting and advisory, data transformation, process, redesign, modernization, physical and trusted AI systems. These are all interconnected and not separate initiatives. In fact, this is also driving a shift in commercial models, moving from effort-based pricing to consumption, transaction and business outcome models.

I would now like to share some more details about our AI native business and platforms unit, which we launched at the last quarter. With this in it, our goal is to build and scale led platforms, incubate new AI native businesses and create differentiated industry plays. In fact, this unit will focus on scaling enterprise-grade agentic AI and building industry, cross industry and perpetual platforms to drive measurable outcomes for our clients. It brings together product management, engineering and forward employed capabilities and engineers to accelerate real-world impact.

This unit will also develop and scale domain-specific enterprise-grade small language models that delivers targeted intelligence lower operating costs for our clients and specific business outcomes. These SLMs, which are small language models, will power specialized agents support sovereign AI requirements and provide an efficient foundation for deploying AI at scale across industries and functions.

Of course, building AI talent is a priority for us. Technology transitions rely heavily on talent transitions. At Wipro, we are building an AI-ready workforce at scale, enabling structured learning and growing a base of agent skills and certifications. In fact, AI skilling is now embedded into delivery, driving productivity and better client outcomes. Our focus is on role-based capabilities across the AI spectrum, starting with advisory to deep tech. Finally, as we look ahead, the role of IT services is expanding and evolving. The questions around AI will continue to evolve. Expectations will become sharper. Hence, our focus is to stay grounded in execution and delivered outcomes at scale.

Let me now conclude by summarizing our focus and strategy. One, lead with our consulting-led AI-powered strategy; two, help our clients reimagine the processing build AI platforms and create new operating models; three, bring together domain, process, data, cloud, security, and change management to skill AI responsibly, for strengthen client relationships through measurable business impact; and invest in differentiated capabilities that help us lead times partners and employees for your continued trust and support. Thank you all.

Thank you, Srini. The notice of the 80th AGM and the annual report containing audited financial statements including the consolidated financial statements for the year ended March 31, 2026, along with the Board's and auditors' reports have been sent by electronic mode to all those members whose e-mail addresses are registered with the company or its depositories. These documents have also been made available on the company's website.

In view of the same, the notice of AGM is being taken as read. Deloitte, our statutory auditors have submitted their report on the financial statements for the year ended March 31, 2026. The auditor's report does not contain any qualifications, modified opinions or adverse remarks. Hence, the auditor's report is also being taken as read.

In terms of the Notice of the 80th AGM, the following items of business are being considered at this meeting: one, to receive, consider and adopt the audited financial statements of the company, including the consolidated financial statements for the financial year ended March 31, 2026, together with the reports of the Board of Directors and auditors thereon. Two, to confirm that the interim dividend of INR 5 per equity share that we declared -- that was declared by the Board on July 17, 2025, and INR 6 per equity share declared by the Board on January 16, 2026 as the final dividend for the financial year ended March 31, 2026. And three, to appoint a director in place of Mr. Azim H. Premji Dinn number 00234280, who retires by rotation and being eligible offers himself up for reappointment.

We will be glad to answer questions now, which any member may like to ask us on the financial statements or more broadly on other matters. The in staple voting facility will now be activated for members who are participating in this meeting and have not already voted through remote e-voting. The InstaPoll facility will remain active until 30 minutes after the conclusion of this meeting. We will commence the Q&A session shortly. Thank you.[Presentation]

I request Sana, our Company Secretary, to share a few guidelines for the Q&A session. Sana, over to you.

In order to ensure smooth interaction and participation, we request the members to note the following guidelines for the Q&A session. The Q&A session will be anchored by me, and I will call the preregistered speakers by their name to ask their queries, clarifications 1 by one. I will invite the speaker in the batches of 5, and we will answer those 5 questions before moving on to the next batch of 5 speakers.

Members are requested to unmute their microphone before speaking and also enable webcam if they wish to appear on video. Members are requested to mention their name, folio number and location. Members are also requested to restrict their questions to 2 minutes so that all speakers will get an opportunity to share their views. In the interest of time, I request members not to repeat the questions raised by the previous speaker. It may be noted that we will reserve the right to limit the number of members asking questions depending on the availability of time at the AGM.

I now request the first set of speakers to come on screen and ask their question. The first name is Prakashini Shenoy. Ma'am, if you can come on screen and ask your question, please.

Am I audible, sir?

Yes. Please go ahead.

Thank you. Thank you, sir. I'm Prakashini Ganesha Shenoy from Bombay. Respected honorable Chairman, the dignitaries of the board and my fellow shareholders, good morning to all of you. I received the AGM report welding time, which is colorful, informate you, transfer engine contains all the information as per the corporate governance. I thank the Company Secretary and Mr. Rajat for the same. I should not forget to thank them onto for reminding me of today's easy. Thank you once again.

The Chairman and CFO has seen visible picture regarding the company and it's working in all parameters. Thank you, sir. Congratulations for completing 18 long years. At the outset, I'm thankful to the Board for a commanding dividend for the financial year '25, '26. I'm also glad that the company is doing outstanding work in the field of CSR activity. Congratulations to one and all for issuing various awards.

Now my question. My first question is finely highlight the future road map for growth and risk and business due to global situation. My next question is how do we adopt digital technology to increase productivity? And my last question is, what is our Board's dividend distribution policy? Chairman, sir, last but not the least, my personal request to you, please continue with VC so that people all over will have an opportunity to express their view. I wish the company good luck for a bright future and break on that the profit of the company shall reach total due code. Sir, I strongly and rapidly support all the resolutions put forth in today with you. Thank you, Chairman, sir.

Thank you.

Our next set of speaker shareholder is [indiscernible]. .

And also, how are we going to maintain our leadership position for long term so for 5 years or long term, sir? And what is our dividend payment policy and any further buybacks will come in the long term or not sir?

Sure. Thank you. Our next speaker shareholder is Mr. [ Nitesh Gupta ]. .

[Foreign Language].

Thank you. Thank you, Nitesh G. Our next shareholder is [ Santosh Saraf ].

Yes, sir, please go ahead. Respected Chairman and Board members and fellow shareholders. My name is Santosh. Hope I allow you in shape and good health. Namaskar. So namaskar to our Founder, Chairman, Mr. [indiscernible] who is graded through the video compete. I wish long life and good hell. I have remember in the '26 when I attained a physical meeting in the Bangalore and us seem to give a photograph with me because by age, but allow me to come again, we take a photo, but maybe solid to us today in a long came year as I asked your sector many times. Please send me a digital company or hard copy because it's a [indiscernible] sir.

I used to meet you to [indiscernible] again, give him [indiscernible] In the 2019, so I also projecting the meeting rising. Please Rishadji, [indiscernible]. So please, I won't go boldly that manageable set a budget and explained so many good. After this, there is no -- it's an [indiscernible] . But as you have it or bad habit, I'm asking 1 or 2 questions to you, but take other ways that I have is regarding Wipro long-term performance. Despite industry's growth, people have constantly like behind peers in the revenue growth and market share.

Food management later explained the case tax region behind this underperformance and what Jane has been implemented to ensure sustained improvement in growth and margin growth or worse. So are you any plan to increase disclosure on the ESG sustainability metrics. Sir, what competitive advantage differentiated as from domestic and internet completed sir. that he explained so many about AI type not go to a rage, but I have full faith in Wipro. We wish you financial '26, '27, our company, and all our directed all our employees and our company healthy and prosperous year.

The last again so I request to -- nobody knows when I go. So please as you see can we have digital to a hard copy to me. Thank you. Namaskar.

Thank you. Thank you, Mr. Saraf. The next shareholder is Hiranand Kotwani, Mr. Hiranand Kotwani, please.

On our respected person attending a meeting. I am Hiranand Kotwani. This company is really doing very well and systems. [indiscernible] is well taken. Cash generation, focus on margin, optimism, cost up to a decline. How you see the future? Because the accretion of mind regarding the decline in the action -- we are diversified. We will cope up. These people are well competent 1 or came a note, you not as how still we got the gentlemen related to a whole picture, no question to us.

But certainly, I have 1 global academic partners, who are our global academic partner. If you could elaborate, minority of our global [indiscernible] we are dealing with your ability to experience is well acknowledged working well.

Rishad will answer these five.

Thank you to all of you for your comments and questions. I'll try and answer as many of them and if I can't try and get Srini and Parna here to help me as well. There was a consistent question on the future of the company and where are we investing and where we hope to drive differentiated growth through. As both Srini and I talked about, our fundamental focus is how do we drive a consulting-led AI-powered story going forward to serve our customers. We're investing in a very systematic basis on what we call Wipro Intelligence, which is our unified suite of offerings.

We are focused on 3 fundamental areas: one, how do we deliver better to customers in the and operate part of the business through our WINGS platform we are focused on how do we help our customers build better through our WEGA platform, both on the software development cycle as well as through building out agents, and we are focused on how do we help our customers reimagine their businesses, leveraging AI in both talked about one of the big investments we've made in the organization in the early part of this year is setting up a dedicated AI native business and platforms unit, which will be focused on building enterprise-grade agent first-led platforms that are highly, highly industry and industry-specific and dedicated.

We are investing tremendously in Wipro Ventures, which is a $0.5 billion fund through which we engage with young, new age companies across the spectrum with a very strong focus in the AI space. We have a pool of about 8 companies that are now dedicated within that portfolio to the AI space. As she mentioned, we've set up a Wipro innovation network where we can collaborate and coordinate with our customers, bringing a whole bunch of our tools as well as our capabilities as well as partners to create differentiated solutions for customers. We've built out tell over the last few years, but we are very committed and focused on building this differentiated story in a world that's becoming more and more AI first for the future.

The other big question that came up was on our dividend and buyback policy. As we have shared very crisply, I believe, and clearly that our dividend policy is that we will pay a 70% of net income over a batch of 3 years which will be a combination of the ways we return that cash, which can be through a combination of dividend and buyback. We have declared INR 11 as dividend last year in financial year and we also announced at the beginning of this year, our largest buyback of INR 15,000 crores, which we've just completed over the course of quarter 1. So we remain very committed to returning that money to shareholders.

At the same time, we remain very committed to not deploy ourselves of any investments that we would like to make. The other investment element that I would like to add that we are also very committed to is M&A and doing selective M&A as in shared we've done an M&A in the connected services space through the HARMAN DTS acquisition. We've done a captive takeover of Olam, which is a large strategic long-term commitment in the agri and food space, but by monetizing that upfront for our partner. And we continue to look at opportunities in M&A as well. Santosh, we will make sure to try and find that picture and get it to you if we do have that, I'll make sure somebody follows up to at least look for that picture.

And then the -- I think on ESG disclosures, I think we disclosed I think in fair depth and clarity what we are doing in the ESG space, if there are specific questions that you have, you can come back to us off-line, and we can certainly try and answer them. And the last question there was from here and an ad was on skilling. Srini, I don't know if you want to talk a little bit about what we're doing on the skilling side.

So I think the question also was in terms of our engagement with the global academic partners. So one is, as far as the skilling is concerned, we are very specifically focused on training and upskilling that 240,000 employees, and we are very specific personal-based trading programs for our -- from a deep tech an advisory that I talked about. So these training programs, we're also doing it with our partners, the hyperscalers and the AI native and frontier companies as well. So skilling is something that we feel brings in a lot more depth understanding of processes of our clients across the industries, data because data pricing becomes very critical for AI to be successful and of course, all the technology et that come with it.

In terms of the partnership, I just wanted to call out 2 specific examples. In fact, 2 months back, we were at MIT to understand what's the next after AI because we are talking about agent, but also there's a lot of opportunities on the physical AI that I talked about, so understanding human at, robotics in that context, understanding the space take. So MT is 1 of our global partner around this. And here in Bangalore, we have Indian sub science, where we work with them on the data security and other aspects as well. So the relationship with academic institutions is very important because we are able to incubate some new ideas as we move forward in terms of the changing and evolving AI.

Our next set of shareholders, we'll go ahead now. The first shareholder's name is Ashith Kumar Pathak, Mr. Ashit Kumar Pathak, please ask your question.

Am I audible, sir?

Yes, you are.

Very good morning, respected Chairman, MD and CEO, Board of Directors, Company Secretary, fellow members joining at 80th AGM of Wipro Limited. My name is Ashit Kumar Pathak, joining from Kolkata.As for my same gratitude to our Company Secretary, Mr. Sanaulla Khan; and internal Seciera team for excellent cooperation for attendees of the AGM and speaker name registration.

Sir, your opening remark is very, very more powerful. I have noted that all the valid points. You also mentioned the key fundamental areas. That is a very excellent and appreciating for this, also our excessive or sins. Also, very good performance. I noticed the net income increased to 2.2% to $1.43 billion. Net income margin rose also 14.2%. I noticed it. And also R&D expenditure near about INR 4,499 million. and significantly have paying the dividend INR 11 per equity share and EPS rose to 2.1%, creating 12.2 share. Excellent, excellent and significantly are noticed in the balance sheet economic interest vested in iron coffee, excellent test. But if you allow me, I have some brief points, I'm quickly finishing.

Number 1 is how the newly established AI native business and platforms, you need to differentiate itself from existing service lines in terms of revenue growth, share your thoughts. Next, with revenue from Americas 2 declining in financial year '23. What specific are announced studies are in place to regain growth, share your pot. I noticed with a generated from operating activities decreasing by INR 2,108 million. metals are being taken to incur capital efficiency in Page #52 it mention.

So report giving a cash out for INR 26,000 million for business acquisition in financial year. What do we expect return on investment, which you look forward, share your thoughts. I noticed our ratio declined from 2.8 to 14.9% Also, current ratio decreased to 2.7 2.05, out of my company both an to restore market valuation and investor confidence. Share your talk about this. I noticed the into total base near above 16 7,874 million what is our strategy to optimize debt-to-equity ratio. Page #26 mention on Page 71, with unsecured notes $750 million mentioned Wipro IT harvest LMP in 2026 and realize the PCB creation strategy for creating up and engineering talent.

Share your thoughts about this, how does both evaluate the impact of the high rapid structure initiative on overall business productivity and client satisfaction? How will the company ensure the epical governance of AI, particularly regarding the privacy of client data and port platform. However, by company plan to mitigate the pricing pressure arising from competitive intensity mentioned in the Netcom report outlook, share your thoughts.

My final question is, I noticed what is the specific contribution of generative AI in our ECB and operating margins in this coming financial year, which we are looking forward. And how are we mentioned, but general but generative AI, depressing our traditional IT service revenues of opening entirely new revenue streams, share your thoughts.

And I notice Capforce performance had various challenges and much come recently executed INR 5,000 crores rebuybacks at INR 250 per share. Share your thoughts on our strategic road map for return in the consultancy business to robust double-digit growth as we have to for your good health and also our founder, good health. Namaskar. My pronounce to him also and everybody good health. Thanking you so much for your time.

Can we have Mr. Reddappa Gundluru, please, the second shareholder? Mr. Reddappa? While Mr. Reddapa is joining, can we have the shareholder, [ Amit Kumar Banerjee ].

Yes, Go ahead. Yes, Mr. Reddapa. Go ahead.

Thank you so much, sir. First of all, [indiscernible]. So as shareholders are very happy though about the company performance. All other executive directors, and Mr. Khan for company growth, Mr. [ Ritemji ], Rishadji and also [indiscernible] deliver very good speed from even the picture of [indiscernible] to integrate product 36th team's annual report, the enterprises to lead and [indiscernible]. In your speech half of many times that you -- and that's not happening very good manner. Thank you so much for it reflects to my company. We put strong focus and innovation fishery kudos to all the management, especially Srini and Rishad, sir.

And I sincerely appreciate the Chairman and CEO, CEO of our entire leadership team or steering the company through challenging global enrollment, we were continuing to invest in a cloud cybersecurity, digital engineering and other talent development. I also think the company secretary, can, the Investor Relationship is very good. Mr. [indiscernible] always support you reachable and also or netting and connecting this AGM smoothly and merit subcut governance and transparency. Once again, I would like to thank what the corporate governance is ships are under leadership my company, maintaining very good world-class transparency for governance especially accountable credibility and overall licensing integrity there. Thank you. Your other bits doing well.

So I have 2 questions. First one is transferring the industry rapidly, right? So what percent of Wipro's revenue is currently generated from the artificial intelligence related projects? What are the targets remain [indiscernible]. So I would like to know whatever the programs are connecting to the skill development about the [indiscernible] and other things, sir.

Fourth one and final one is what is outlook for the large deal wins and client spending as that markets such as U.S. and Europe, I would like to know with this to my questions, sir. I already -- e-voting has been done, no questions on the resolution. [Foreign Language] and the Board and continue to commitment to creating long-term value for the shareholders which resets are dreams and Wipro team and employees, continued success and good health rate give more with health and their Board of Directors. [indiscernible] It's not a simple thing, sir. [indiscernible].

Thank you. Thank you, Mr. Reddappa. Can we have the next shareholder, Mr. Amit Kumar Banerjee, please.

Good morning to everyone, respective Chairman of the meeting, other Board Members present. My name is Amit Kumar Banerjee of the City of [indiscernible] Kolkata. Thank you for giving an opportunity to speak. It is our 80th Annual General Meeting of Wipro Limited. Yes, welcoming address very nice and informative. I thank [indiscernible]. As Wipro's performance is concerned on the review year '25, '26 is very nice, good growth, operational efficiency and strong financial presentations.

Company has low debt a strong dividend yield up, investors value. Market price of the share INR 177 currently [indiscernible]. Net profit increased by 11.15%. EPS also improved 11.55 from last year as comparison. Sales during this year also increased by 4.04%. So how you evaluate the new AI negative outcomes to ensure sustained margin and revenue growth. Beyond the recent under billion buyback. What is the long-term capital allocation strategy, considering Wipro's robust operating cash flow?

Current -- I mean the carrier growth, how does Wipro support upscaling and lateral movement internally for someone in the job. I hope our management will improve -- if we can see also move forward sustainable growth with new technologies and also with brand Wipro. I thank our company and his secretary team, a good investor services. Also thank to all time bills was smoothly rated a conferencing meeting today. Myself, Amit Kumar Banerjee, -- over to you for the proceeding. Thank you .

Thank you, Mr. Banerjee. Can we have the next shareholder, [ Guido Chanda ]?

[Foreign Language]

Sir, thank you for your questions. I think we have to give an opportunity to other shareholders also. If you can drop us an e-mail with your questions, we will respond to that basically. Thank you. Thank you for your questions. Can we have the next shareholder, [ Christian Lalcheda ]. Yes, sir, go ahead. .

Can you hear me, sir?

I request you to be short and brief as we are running out of time. So that should give an opportunity to other shareholders also. .

Okay, sir. Thanks sir. I am not repeating any query from the management. First of all, I am really thankful to the entire Secretary team to give me the chance to speak with you. And moderator also set to [indiscernible]. Thank you, sir. On the paid number, [indiscernible] lifetime expected credit loss ones per lifetime credit loss. [Foreign Language]

Thank you. So there are a lot of questions, so I'll request maybe Srini to talk a little bit about some of the questions around just what we're doing on the AI native unit, what we're doing around sort of on attrition, the elements on just AI contribution on Capco, on the outlook for the large deal, the upskilling, which came up again. Just questions around the financials, and then a lot of questions around the financials are our cash flow and the cash management piece, the PE piece, the total piece, the refinancing piece, the lease liabilities piece, the prepaid expenses piece, the tax piece.

And then Sana, maybe you can take on some of the questions around APM, the shareholder complaints, the CSR, et cetera. So there are a bunch of questions. So Srini, if we can briefly try and respond, please.

Thanks, Rishad. First is on the AI unit that we talked about. This unit is an independent unit, which is completely powered and AI team, where we are building industry across industry on functional platforms. And for us, these platforms will be across the 5 industry sectors that picked up. And if you have seen the recent video that got played out. The 2 clients that talked about, 1 was on the net oxygen, which is our mortgage platform, where the client is very happy with that, and we are seeing a very good traction around that.

Second, one of the clients talked about cargo management platform. So in each of the sectors, we have picked up specific industry platforms and also we pick up cross-industry platforms, for example, telecom network management services, which cuts across multiple clients and multiple industries. We're also using AI-native, we need to build our delivery platforms that Rishad talked about WINGS and WEGA. So that's one big focus of this unit, and we're getting good traction around these platforms.

Two, we are leveraging our capabilities around building SLM for our clients in consulting but on a very critical part is how do you prime the data for AI because if you don't have the right data, AI implementation becomes very critical, very difficult aging deplementations and also managing these agents is another new service. So as part of WINGS and WEGA, we're building agents, we are also implementing these agents for our clients.

Token economics, because it's always a balance between human capital and total capital, how do we help our clients especially around the fin offs to make sure the token cost is manageable and also the return on investment of AI becomes very critical. Also, there are a lot of new services around IDCs within an enterprise sovereign AI with geopolitics that's going on. And these are all the capabilities that are built. And last but not the least, I security and response layer, which is very, very critical. So the AI native unit working with Wipro venture companies working with our frontier partners is building these capabilities. It is helping the rest of Wipro to deliver the services, some partners building the depth of capabilities around AI and the tools that come out of that.

Second, we are also working with the clients because having the client context, both on their business and process become very critical, so there are a lot of training programs we are shaping along with the clients. And then last but not the least, it's always support humans plus a coming together. So very important even in a software development life cycle, while you are a very technical person, but understanding the business requirement, how do you do the deployment and production aspects of it end-to-end becomes very critical. So those are the trading programs that we are building for our teams.

Now giving the opportunity sort around AI native units and all the new AI services that's coming up, it actually keeps the team motivated and they're able to upskill and actually deliver value to us. As soon as attrition is concerned, we are in the range of the industry, and we continue to stay -- try and work towards that aspect by giving opportunities and upskilling our people.

The last part was around the demand. Just to very clear here, there is no change in the demand environment at this point of time that we are building because any business process services or application management infrastructure services, we are embedding AI and bringing the efficiency and cost benefits for our clients. And finally, the pipeline continues to be healthy across industries and across markets.

Yes. So there was a lot of questions. I'll try and take some of them. And if there are more, you can please send us on to the secretarial team, and we will take them there. On prepaid expenses, it has gone up because of the investments that we're making around AI licenses and SaaS bands. Our cash flows have been fairly robust. We are delivering 112% of our net income as free cash flows, which is significantly ahead of industry standard -- and we will continue to look at how to keep that sustained level of high performance on cash flows.

On lease liabilities, some of the leases that we have taken outside of India have to be restated for ForEx. So you're seeing some transition adjustments there. In terms of other expenses, in FY '26, you're seeing an increase because of an increase in expected credit loss from one-off in that declared bankruptcy during the year. And in the year for that, we had a credit of insurance claim, which was of a large sum, and therefore, you're seeing the year-on-year movement.

Other income accounting yields have remained robust and stable. It's -- the movement is simply because of the average investable cash that's available, given that we've given out large dividend since you will see that volatility investable surplus and therefore the other income. On refinancing of old dollar bond, we have enough revenues. Our debt ratios are very low. We have as of 31 March $4.1 billion of net cash. So we are very well positioned, very strong. We will continue to keep a optimum level of debt ratios.

On the PSH cases increasing, we take pride in the fact that we drive a lot of employee awareness. We encourage bus to come forth and raise their complaints. If you look at the number of cases that have been resolved in the last financial year, they've been among the highest. And at any given point in time, you will always have some cases at on the investigation. employees to come and raise a complaint, and we look at it as a fact that the program is actually working very strongly and good.

In terms of the tax cases, these are routine tax matters, tax cases, and we have a good team, both inside and we have a good set of consultants, both legal and tax who are helping us on this. A lot of these this have been closed in favor in some of the lower quotes, and we will wait for it for the matters to get fully resolved before we take them off this but we are not concerned at this point in time. Like I said, if I missed some of your questions, I'd be happy to take them.

There are a couple of questions on IEPF and also on fintech e-mailing. On IEPF the suggestion was to send DDs to the shareholders whose bank accounts are not available with us. There is a semi circular to make all dividend payment only through electronic mode. Hence, we are not sending out the duties. However, we will certainly evaluate this and see if we can implement this suggestion.

The second suggestion is on fintech e-mail ID. We will work with KFintech, and make sure that the e-mail id that is being communicated to the shareholders is easily accessible and all the -- all their queries and grievances are appropriately addressed.

Now we'll move to the third set of speaker shareholders. I request [ Vandana Das ] to come on screen and ask her question, please.

Am I audible?

Yes, please go ahead, Vandana.

Yes. Good morning, sir. Good morning respected Board members and my fellow shareholder. First of all, I would like to thank the secretarial department for registering me a speaker and giving me opportunity to speak. I will be very short with a few questions I wanted to ask. As the company share, we see that has remained under pressure over last year, reflecting the concerns of growth and then -- now also at the same time, many Western economies have tested significantly and slowdown in technology. So being a company, I wanted to know what was the layoff as compared to the last [indiscernible].

And also as a company and outsourcing traditionally and a major source of income and revenue is from IT industry, how does the management and viewing as the risk is declining of outsourcing demand particularly in vesting countries, specifically in U.S. that you might has been decreased. So how the company is mitigating this? And what is the pros implemented strategy address this challenge. -- and drive a sustainable growth in areas of AI, cloud, consulting and digital platform. Thank you so much.

Thank you. Can we have the next shareholder, Bharat Raj?

Yes. Very good morning, Chairman sir, entire Board of Directors. I'm Bharat Raj attending from Hyderabad. Chairman, thanks for the CSR program and the during and congregate for the buyback also, sir. There were a lot of shareholders as the questions. My question is that what is the CapEx plans for this financial because I'm very happy that you have taken initiation of the ASF? A lot of companies recently share price has come down to the AI. My company share price is very strong. The way you take the future plan, sir?

Second question, sir, regarding the 6 adjustment, I have expression from the Heater.What type of recasting the HR is taking and what Board is doing so Chairman are recently in India, there is a big IT company. The communal rates has been raised. What type of precautions is my company has taken in future if it happens, how are you tackling the sites? Please let me know. I thank my company secretary, he a wonderful person. He's always successful in teeing the report, sir, however you sir, concert ticket, sir, come to Bangalore and I meet you. All the best. Take care. God bless. I'm Bharat Raj from Hyderabad.

Thank you very much. Can we have the next shareholder, Atanu Saha? Yes, Mr. Saha, please go ahead with your question.

We can't hear you, Mr. Saha.

Mr. Atanu Saha? The next shareholder, [ Manoj Kumar Gupta ].

Am I audible, sir? It is okay right now?

Yes.

Okay. Okay. Okay, sir. And also thanks to our [indiscernible] and also our [indiscernible] madam, who informed me on time to time. Thank you very much. Sir, the previous year of [indiscernible], it was the beautiful evening and now with beautiful morning which we met with our founder and also it carried forward to a good result nearest shareholder. I wish good health to everybody. The matter of the change the get together this arrange get together.

We are not getting chains after this situation anyhow. And my previous shareholders their price and their requests they're related with enterprise interface and so on and so on. Sir, the CapEx spend area, the CapEx spend, do you have any plan in Bengal right now? If possible, sir? And our credit rating, what is our credit ratings and how we do it would starting situation. I feel proud to be a seller shareholder Wipro Limited, which was founded by your beloved father and our father and our icon and mentor, Sir Ajim Premji. Please convey my best wishes to him. He was a beloved father and I was the wish for its healthy and properly safe long life.

He has given a landmark company to -- not a country, but to the bond where the young generation can inspire a young generation mature for their success. So I wish to go to get success under your leaders to take the company on new hearts with the entire team of management. Sir, what's your future outlook for the IT business, IT companies? Nowadays, isotopes are suggesting do not buy any IT companies yet. So what's your future on it?

And what impact has come on our company, which is the Trump policy in U.S. after get the chair of President will prove [indiscernible]? Is there any problem to our future core busing in U.S., so what impact has done? And is the direct or indirect impact has come due to Middle East Tencent nowadays in after 28th foray? And sir, you had given a landmark in Kolkata. Now I've got a chance to meet you in Kolkata during the Pana Global Summit in 2025. Now when you are coming to Kolkata? Now that begins changed the new [indiscernible] government in Bengal.

So what's your plan for Bengal, because our Billie Minister is inviting the industry to come Magali investable. So our watch your plan for Bengal to invest. And sir, you are doing a wonderful job for the CSR. I will not say a signal at on a taking purported Jasa Hua with the operative patent CSR it Foundation was just like a Tata. Tata is [indiscernible] Sir, now take the positive space to bring back the past glory of the company that after the within 2 years, our share price would be 4 digit? We've got -- our sales price is under reserved. So take a step in that regard.

I will not say a single 1 on subcell arrangement, this is a macro of inquiry that thanks to our MDA and our CFO, then somebody said that they have come forward on the company that they have a name of inquiry. Just in and that pure committee will take a decision. I strongly support it with the hope that we will come to Ballad he will give me an opportunity to meet you, sir. Thank you.

Can we have the next shareholder, Mr. [ Yusuf Rangwala ].

How are you, sir? I'm sitting in Mumbai you are sitting in Bangalore. But this is very happy, I'm very thankful to all the [indiscernible] all the stuff. They are very polar and they're very particular to work, they had for me. The number is coming very get ready. So this our company is getting for the shareholders. So I am very happy with this company on everything is there. Sir, only one question. Never are in a factory is in my lifetime. Can you are factor possible. I would like to have one more thing.

[Foreign Language].

Thank you. I want to be brief because we are not going to repeat the questions that we've been asked before so that we get animosity or otherwise, we evaluate and look at very, very closely and very thoroughly. There is absolutely 0 tolerance in our company for any form of bias, and I want to assure you on that comfort emphatically, right? I just want to make that comment.

The question, I will certainly make sure to pass on your greetings to my father and our founder. He's online as well, so he can hear you. But thank you for those shareholders who mentioned him. The Wipro Enterprises business, which makes the soap business is a completely distinct business. Wipro Limited has no factories, Mr. Yusuf. So unfortunately, you can't visit a factory because we don't have one. I will request Srini very, very quickly, maybe to just talk about the changing demand environment and the future for the IT industry very, very briefly. And then on the question on CapEx, I think if you want to touch on that in credit rating, and then we can close the section. And maybe the H1B, if you want to touch on that as well, Srini.

Sure. As far as H1B is concerned, I think there's no impact on our business. I think bottom compressions, especially for example, software development life cycle today and of state you are in, whether it's a greenfield implementation or oil implementation, depending upon the complexity of the core complexity of the environment, the productivities are dramatically different. Having said that, our endeavor is to make sure that it's always going to be. human plus for the slide. opening comments, investing big into partnerships, investing big into innovation network and also driving frontier success for our trends to improve Wipro Ventures.

So we rated AAA by ICRA and we are rated A- by S&P. And in fact, it's higher than the sovereign rating. So both of them are absolutely at the top notch. In terms of CapEx plans, we are expanding our presence in Kolkata. There are new offices that are coming up. In terms of CapEx plans for AI, we've spoken about it. A lot of our investments are actually on reskilling people development, partnerships, and we are also open to doing investments through our Wipro Ventures arm and equally M&A. Those are the plans as far as CapEx for AI is concerned.

Can we have the next set of shareholders, Mr. Jaideep Bakshi, please? Mr. Jaideep Bakshi. If we don't have Mr. Jaideep Bakshi, can we have [ Rahul Marwal ]. .

Good morning , everyone, respected management and Board of Directors. I had a question on AI cost at the company. [Foreign Language]

Okay, we'll answer that.

Next question, sir. [Foreign Language]

Thank you. Can we have the next shareholder, Rahul Marwal. I request all the shareholders to be brief in the interest of time, please. Can we have [ Suresh Matdu ], the next shareholder.

So this is Suresh Matdu from Hyderabad. I have a few questions. Thank you very much to Azim Premji, he started the organization with years back. And let's say, continue with the son, okay? thank you very much to the leadership team to ask give the chance to me Okay. Sir, my question is only for 2 questions in. So no legacy technologies, what is the growth of the pro technologies of the business side and AI. so now in AI side, so a lot of companies are using Antropic, Claude and everything. So how the future of the AI in the market? One more question. And in India, a lot of GCC is going forward. So in the GCC or how much business so they deamidation to India level? So not only in the IT sectors of the technologies. So that's the 3 questions from my end.

Thank you, Mr. Suresh. Can we have the next shareholder, [ Nitin Kumar ], please.

Fellow shareholders, my name is Nitin Kumar, and I'm joining today from [indiscernible]. On this historic occasion of Wipro's 80th AGM,I want to begin by paying a special table to our Founder Chairman, Mr. Azim Premji, its visionary leadership platform will prove from a vegetable oil company in U.S. global software banks. Since he took charge of the company at the end age of 21 and today, I stand before you excite at the exact same age of 21, over legacy of trust and philanthropy services and immense inspiration for the youth.

Now moving to the business I have 2 specific questions, postal capital allocation. Wipro revised to policy from financial year '26 to return 70 percentage or more of net income via dividends and buybacks. While the investors allow cash returns, we are in a massive drop in air revolution. Was a high payout percentage now? Will the remaining 30 percentage retention be sufficient you aggressively finance R&D, capital expenditures and AI and development without compromising our competitive edge?

Second, on working capital. Our accounts payable stands at INR 121. Is this extended payment period causing us any here in depot or vendor stream? Alternatively, are we successfully leveraging this cash buffer to generate short-term investment income before clearing deals? Thank you.

Thank you. Can we have the next shareholder, Mr. [ Narendra Purwal]?

[Foreign Language].

Thanks to all of you for raising your questions. In the interest of being brief, we would not repeat questions we've already given the answers to. I will let Srini talk very briefly on the GCCs. If that's okay make comment talk very briefly on the comment you can comment on GCC. Is that's okay, and then you can make a comment, Aparna, on the working capital that we can on because all the other questions we have touched on some shape spoke earlier at this point on we haven't answered to your satisfaction, please reach out to Sana and he will make sure we'll come back with more depth and clarity. Go ahead, Mr. [indiscernible].

[Foreign Language]

Can we have the next shareholder on, [ Prakash Agarwal ]?

Good morning, sir. Good morning, everybody. [indiscernible] despite the record business environment all over the world. Secondly, we had destroyed INR 14,000 crores in buyback. Also that we had it 100 crores in buyback. Also a buyback is not tax-free nowadays. 30-odd share visually every day. It is ruling around INR 175 almost 52-week low. Do know why it is falling because we are not investing in the future and so foreign event investors are jumping our shares such as today, investors are looking for growth and growth will come from investment in future.

You can see the growth of Taiwan and South Korea. These 2 small countries capital market capital market is more than our company's market cap. It is only due to investment in future. So get a wake-up call, not for our sales, but also for Government of India format is investing us money as well as man hours in SIR or investment? So we have suggestions for CSR Committee. Again, please suborn to provide in under business points nearby the villages because generally [indiscernible]. Second request, [indiscernible] can produce some of CSR fund in scale development to make our country. [indiscernible], 94,000 government that is we closed in the last 10 years. It means 25 schools are closing down every day in whole India.

Sir, I have few requests also, please organize our AGM, 4 p.m. onwards so that American investors can participate in the AGM? Second request, we do remember the speaker shareholders at the time of actives in the same manner as you remember in large, please maintain your smile and big share tool. You're always with you.

Thank you. Can we have the last speaker shareholder, [ Mr. Chopra]? Mr. Chopra, please go ahead.

[indiscernible]

Thank you. Thank you, Mr. Chopra. So one, I want to acknowledge the suggestions that people have made on and the good work the Wipro Foundation is doing and the suggestions that you've made, whether it be on drinking water, whether it be on skill development, whether it be on old age homes, we will certainly take this into consideration. We will -- we've heard your point and listen to your point on your view on the back, we will also keep that in mind.

I want to say, as we've discussed before that our industry is in a fundamental transformation change, which creates opportunity. And we've shared and articulated throughout the course of this conversation with everything that we are doing to prepare your company for the future. I want to assure you that we are making those investments to prepare and participate in this future wave which can create a huge amount of opportunity, which is everything around artificial intelligence.

With that, I just want to sort of share that all the items of business as per the notice of the 80th AGM have been taken up. I want to declare the proceedings of this AGM as completed. As mentioned earlier, the InstaPoll e-voting facility will continue to be available for 30 minutes at the conclusion of this meeting. And I want to thank on behalf of the Board of Directors and the management team of Wipro, all of you, the members for attending and for participating in this meeting.

I want to also say that if there were any questions that were left not fully answered, please share that with our secretarial team, and we will ensure to get back to you in a timely manner. Thank you again. I now declare this meeting closed. Thank you.

Ladies and gentlemen, good day, and welcome to Wipro Limited Q4 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded, and the duration for today's call will be for 45 minutes.

I now hand the conference over to Mr. Abhishek Jain, Vice President, Corporate Treasurer and Head of Investor Relations. Thank you, and over to you.

Yes, [ Yashi ], thank you. A warm welcome to our Q4 FY '26 earnings call. We'll begin the call with the business highlights and overview by Srinivas Pallia, our Chief Executive Officer and Managing Director; followed by updates on financial overview by our CFO, Aparna Iyer; we also have our CHRO, Saurabh Govil; and our Chief Strategist and Technology Officer, Hari Shetty on this call. Afterwards, the operator will open the bridge for Q&A with our management team.

Before Srini 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 1995. These statements are based on management's current expectations and are associated with uncertainties and risks, which may cause the actual results to differ materially from those expected. The uncertainty and risk factors are explained in our detailed filings with the SEC. 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 Srini. Srini, over to you.

Thanks, Abhishek. Hello, everyone. Thank you for joining us today. Geopolitical and policy disruptions have become the new normal. Despite these headwinds, IT spending has shown resilience. Cloud, data and AI continue to attract investments as they provide the infrastructure for future growth. Client priorities are shifting with spending decisions increasingly tied to outcomes. And at Wipro, we continue to make decisive investments to navigate the AI-first world.

With that context, let me now turn to our performance in quarter 4 and for the full year FY 2025, '26. All growth numbers I share will be in constant currency. Our IT Services revenue for quarter 4 was $2.65 billion, reflecting a sequential growth of 0.2% and degrowth of 0.2% on a year-on-year basis. Our operating margin came in at 17.3%, a contraction of 30 basis points sequentially. Order booking for quarter 4 was at $3.5 billion, which is a growth of 3.2% sequentially and a degrowth of 13.9% on a year-on-year basis. We had 14 large deals totaling $1.4 billion this quarter.

For the full year, IT Services revenue were $10.5 billion, reflecting a year-on-year degrowth of 1.6%. Our operating margin was at 17.2%, an expansion of almost 15 basis points as compared to FY '25. Now to our Strategic Market Unit performance in quarter 4. Americas 1 delivered sequential and year-on-year growth, driven by strong performance in consumer, technology and communications. The health care sector was impacted by seasonality and policy changes. Americas 2 declined sequentially and on a year-on-year basis. The BFSI sector was impacted by delayed ramp-ups on some large deals that were closed earlier this year and by certain client-specific issues.

Europe grew sequentially and has remained flat on a year-on-year basis. We see good traction in the U.K., specifically in the BFSI sector. We also see strong deal momentum in Germany. APMEA grew sequentially and on a year-on-year basis. Growth is driven by Southeast Asia. We are seeing traction in the BFSI, technology and communication sectors.

We are encouraged by the momentum we are seeing in the APMEA region, both in performance and bets we continue to make there. A strong example is the strategic deal we announced recently with the Olam Group, expected to exceed $1 billion in contract value with a committed spend of $800 million. This is one of our largest engagements to date in APMEA.

In this quarter, we also closed several strategic engagements. Let me highlight 2 examples with global technology leaders who drive AI at scale and how Wipro is partnering with them. In my first example, a leading global technology company has engaged Wipro to help run and improve its frontier AI model. Wipro will manage the end-to-end operation of these AI models from training, governance and evaluation to domain-specific validation. In fact, this engagement will be done through a specialized global delivery platform. We will make these models more accurate, reliable and safe, while ensuring they can be deployed and managed at scale.

In my second example, we have been selected by a leading global semiconductor company to provide engineering services that accelerate product development and manufacturing across its complex hardware platforms at locations distributed globally. We will support the entire engineering life cycle from product development to performance testing analysis before final shipment is made by our clients to their end clients. This will help our client achieve faster resolution management, higher yield and improved governance with AI-driven analytics and automation.

As intelligence becomes industrialized and widely accessible, we are making a deliberate strategic pivot to stay ahead. As you might be aware, we have launched a dedicated AI native business and platforms unit to expand beyond a services-only model to a Services-as-a-Software approach. This unit will operate with dedicated leadership, focused investments and a distinct operating model to accelerate enterprise-grade agentic AI solutions. This unit will also incubate new AI-led businesses through an invest build partner approach, in addition to collaborating with Wipro Ventures and our partner ecosystems. Together with core services, this creates a dual engine model, driving transformation at scale while building AI native platforms that differentiate services, enable repeatable deployments and unlock nonlinear growth.

With that, let me move on to our guidance for the next quarter. In Q1, we are guiding for a sequential growth of minus 2% to 0% in constant currency terms. Thank you. I'll now hand it over to Aparna, our CFO.

Good evening, everyone. Let me share a quick update, and then we can open it up for Q&A. Our IT Services revenue for Q4 grew 0.2% sequentially in constant currency terms and 0.6% in reported currency. Our revenues declined 0.2% on a year-on-year basis in constant currency terms. For the full year FY '26, IT Services revenues declined by 1.6% in constant currency. Our operating margin for the quarter was at 17.3%, a contraction of 0.3% over Q3 '26 and a 0.2% contraction on a year-on-year basis. With this, our full year operating margin stands at 17.2%, an expansion of 15 basis points year-on-year. We maintained the margins within a narrow band even after absorbing 2 incremental months of DTS HARMAN. And we also rolled out salary increases effective 1st March.

As we move into Q1, we will have the headwinds of 2 months of salary increase and a few large deals that we have won and the volatility could be there in our quarterly performance. However, having said that, our endeavor would be to maintain these margins in a narrow band in the medium term. Net income for the quarter was at INR 35 billion. Adjusted for the impact of labor code changes, our net income increased 3.7% sequentially. For the full year, our net income increased 2.2% year-on-year. This was after absorbing the impact of restructuring charges in both Q1 and Q3 of last year. EPS for the quarter was at INR 3.3 and INR 12.6 for the full year.

Moving on to our Strategic Market Unit and sector performance. All the growth numbers that I will be sharing will be in constant currency. Americas 1 grew 0.3% sequentially and grew 2.9% on a year-on-year basis. Americas 2 declined 2.6% sequentially and 6.7% on a year-on-year basis. Europe grew 2% sequentially and was flat on a year-on-year basis. APMEA grew 3.1% sequentially and 8.8% on a year-on-year basis.

Moving on to sector performance. BFSI declined 1.3% sequentially and 0.5% year-on-year. Health declined 4.4% sequentially and was flat year-on-year. Consumer grew 1.7% sequentially and declined 2.9% year-on-year. Technology and Communications grew 5.3% sequentially and 10.4% year-on-year. EMR grew 1.1% sequentially and declined 5.9% year-on-year.

Let me share some other key financial metrics. Our operating cash flow continues to be higher than the net income and stood at 112.6% of net income for FY '26. Our gross cash, including investments, was at $5.9 billion. Accounting yield on average investments held in India was at 7.3%. Our ETR was at 23.5%. In terms of guidance, to reiterate the -- what Srini said, we expect our revenue from IT Services business segment to be in the range of $2.597 billion to $2.651 billion. This translates to a sequential guidance of minus 2% to 0% in constant currency terms.

Lastly, I'd like to share that in our recently concluded Board meeting, the Board of Directors have announced and approved a buyback of INR 15,000 crores at a price of INR 250 per share. This is the largest buyback that Wipro has announced. And we expect to buy back 5.7% of the paid-up capital. The buyback is expected to complete in Q1 '27, subject to shareholder approval. Our endeavor has always been to return a substantial portion of the cash generated in our -- through our operations back to our shareholders. In FY '26 alone, we distributed dividends of $1.3 billion, taking our total payout ratio for 3-year block ending FY '26 to about 88%, which is significantly higher than the minimum threshold of 70% that we have as per our capital allocation policy.

With that, I will hand it over for Q&A.

[Operator Instructions] We'll take our first question from the line of Prateek Maheshwari from HSBC Securities. Sorry, his line is disconnected. We'll move on to the next question from the line of Sandeep Shah from Equirus Securities.

Sir, the first question is there has been a good large deal wins, which has happened early 1H as well as fourth quarter of last year. And we kept on telling about delay in these large deals, which was expected to come in Q3, then we said Q4, then we said it will come in 1Q, but the guidance does not show that. Despite the nature of the deal being cost takeout vendor consolidation, why is this delay is happening?

Thanks, Sandeep. This is Srini here. Thanks for your question. Let me just talk about the quarter 4 performance in the context of the 4 SMUs we had. 3 out of the 4 SMUs, Americas, Europe and APMEA have grown sequentially. Having said that, specifically Americas 2, we saw significant softness. And this is specific to the BFSI sector there. This has been a combination of both client-specific issue and delay in ramp-up that you're talking about. The reason for the delay is very client-specific, but we see that opportunity coming up sooner than later, and that will give us the growth in that particular account and that particular sector.

Okay. And do you believe second quarter onwards, there could be needed ramp-up can actually pull up the growth? Or do you believe client-specific issue because of the geopolitical issue and macro may continue?

So as far as this particular client is concerned, it will end in quarter 1, Sandeep, and there is no further impact for us materially. That's number one. Number two, as far as geopolitics is concerned, and we have not seen any clients at this point in time demonstrating any specific behavior. And also, if you reflect on the pipeline that we have across the markets, including countries, and across the sectors a very strong pipeline. Of course, it's a very competitive landscape and the competition is very intense.

And the way we have gone ahead with the Olam deal, which is a very transformational deal, long-term deal, also taking their entire IT into Wipro. Welcoming them into Wipro family. The second one that we announced yesterday, which was part of the vendor consolidation. The kind of deals that are coming off are very different but very strategic, and we are staying focused on execution for us, which will help us in the quarters ahead.

Okay. And just last, there has been a notable decline in the top line. What is the reason for the same? And second, can you give us the inorganic growth contribution you have factored in the first quarter of growth guidance?

So these 2 deals that we've announced in this month, Sandeep, are part of our guidance. At the midpoint, we have assumed both these deals to start yielding revenues for 1.5 months, halfway through the quarter. To your point on the top account growth, it's a sequential decline. But from a year-on-year standpoint, it continues to have grown. And we are very confident that it will continue to come back as we go through the quarters.

Okay. Okay. Is it possible to quantify inorganic growth in the guidance?

They are not inorganic. They are actually strategic deal wins. If you look at it, Olam is a strategic deal win with -- it's a relationship that is -- has committed revenue. So -- and even the other one that we announced was a part of the vendor consolidation strategy for one of our top clients, and we continue to participate in these kind of deals, and both will be a part of our numbers and our guided range.

Next question is from the line of Ravi Menon from Axis Capital.

Srini, beyond the top customer where we've seen a sharp decline, we've also seen [ top 2 to 5 ] customers also declined slightly. And the top customer decline, even although you said it seems temporary, it's a very sharp decline. Can you talk a bit about what led to this? And why it -- what gives you confidence that this will be temporary?

Ravi, if you look at it, our top client has been producing a healthy growth for a fairly long time, right? This kind of one-off quarter volatility is not something that we are unduly concerned about. The relationship remains very strong, and you should continue to see it bounce back.

And the unbilled revenue has grown this quarter for more than [ INR 80 million ]. And then we've also seen some long-term unbilled revenue. Can you talk a bit about what's led to this? And how should we see that trend?

No. So I don't think -- see, the unbilled revenues that has gone up is more a quarterly aberration. It should correct itself. From a quarter on -- I mean, from a year-on-year standpoint, actually, our DSO has remained flattish. Like I said, our operating cash flows have remained 112% of net income. We are not seeing any large exposures or pile up of our unbilled in our balance sheet.

From a long-term unbilled standpoint as well, I think it's fairly contained, and we've shown consistent improvement. Yes, some of the larger deals, as they pick up, we are open to -- they will come with some amount of balance sheet leverage, but nothing that's unduly different than what we do as business as usual, Ravi.

Next question is from the line of Dipesh Mehta from Emkay Global.

A couple of questions. First on the clarification part. You said BFSI weakness was because of 2 factors: one, is client-specific; and second, is delay in ramp-up. And one of the question and answer you indicated about some of the issues likely to be ending by quarter 1. Which part you are indicating by Q1, it should end?

We have said that the client-specific issue that we have seen in one of our clients in Americas 2 has had an impact in both Q4 and Q1. And there won't be a continuing impact of that going forward. So...

And what about the delay in ramp-up part?

Yes. So if I have to characterize, see, we've had several large deal bookings, right? Now the one that we announced, on Phoenix, it has fully ramped up to plan. There's no delay in that, right? If you look at the other 3 mega deals that we spoke of, one of them is on plan, and we are continuing to ramp up. We are seeing challenging, one of those large deals that we spoke about, where we are seeing a delayed ramp-up, which is, in particular, impacting the growth rate of that particular sector in that particular market unit. Outside of that, BFSI growth rates are pretty good in Europe and APMEA. As that client comes back and we start to ramp up, you will see those growth rates improving. That is our job. I hope that...

Can you give some sense about, let's say, what factor is leading to delayed ramp-up, whether -- so if you can provide some details around it qualitatively, what is leading to some of those delays?

Second question, which I have is, if I look, let's say, the couple of transactions, which we closed or in the process of closing, we included in the guidance. If, let's say, any delay in some of those closures, do you see risk to that guidance kind of thing?

You know we guide in a range. There is -- like I said, we guided a range and there is a midpoint, and we have some cushion both on the downside and on the upside. And for now, we are comfortable within that guidance range. On the first point, Srini, will you...

Dipesh, Srini here. On the first point, this is a very client-specific issue where they have changed a little bit of the strategy around some of the things as part of the business because of which they have delayed it. But having said that, we have the clear visibility going forward. It's about the matter of timing, when and how much, and that should help us going forward, Dipesh.

Understood. And last question from my side. Just want to get some sense about how Capco is playing out?

So Dipesh, as you know, Capco is our tip of the spear for the consulting piece on the [ paper ] side. They are definitely doing well. And if you look at sequentially, Capco is performing very well and also on the year-on-year, both have been very positive. And in fact, Capco has one of the highest revenues in the last several quarters. So Capco is making a big difference in terms of the whole AI advisory and consulting, and the way they are proactively shaping the clients thought process in terms of the whole geopolitics and in terms of the trade and tariff and the technology transition has been really good.

Next question is from the line of Vibhor Singhal from Nuvama Equities.

Congrats, Srini and Aparna, for the buyback announcement finally. I know the market participants have been waiting for this one for quite a while. Two questions from my side. One is on

[Technical Difficulty]

Vibhor. I'm sorry, you're sounding muffled, Vibhor.

I'm so sorry, just give me a second [indiscernible].

Are you on your handset mode? Can you use your handset mode.

Switched to the handset now.

Yes, it is clear now. Please go ahead.

Okay. Sorry for that. Yes. So a couple of questions from my side. Srini, on the energy and utility vertical, this has been a vertical in which has been very strong for quite a while. Just wanted to pick -- as to what are the conversations that you're having with the clients at this point of time because of the Gulf war that is going around? Will the crude prices and the volatility and its impact our business in this vertical, either positive or negative? Any conversations that have already started on that regard? Or is it too early to call out any impact of that on the segment?

So Vibhor, from our perspective, if you look at the quarter 4, we have seen a sequential growth. And both manufacturing, particularly auto and industrial has seen an impact otherwise on the reason for tariffs. Now coming specifically in the context of geopolitics, we were -- I think there is a -- some of the clients are waiting and watching. But having said that, they're not dramatically changed their strategy. For example, what they're trying to do, especially in the manufacturing sector, if you will, they're looking at how do you secure the supply chain, make it more visible and more dynamic going forward. And that's some of the opportunities that we are looking at in the context of AI that can actually help. So that's the trend that we are seeing.

Auto industry. Obviously, they're also looking at how the markets are going, and it varies from country to country in terms of how the business is going. And the third is in terms of overall manufacturing, we have not seen any clear change, but they have been constantly under pressure because of tariff-led disruptions that they're going through. And they're also looking at what kind of consumer demand they can have. And also they are keeping a close watch on the input cost, because that will also impact their final product cost. So they are trying to sharpen their budgeting, I would say, tightening at this point in time.

Got it. Got it. My second question, Srini, was basically on -- again, sorry to harp on the Q1 guidance once again. As Aparna mentioned, we are taking around 1.5 months of contribution from the new deals. That would approximately come to around 0.7%, 0.8% of revenue. Then another 0.7%, 0.8% from the 1-month incremental of HARMAN integration. That leads to almost, I think...

I'm sorry, Vibhor, you're sounding muffled again. Can you repeat the last part, please?

[indiscernible] particularly around 1.5 months.

Now it's fine. Please go ahead.

Yes. I'm so sorry for the poor connectivity. Yes. So as Aparna said, I think the 2 deals will contribute 1.5 months of revenue. That's around 0.7%, 0.8% of revenue. HARMAN acquisition, 1 incremental month in Q1 again, that's another maybe 0.7%, 0.8%. So around 1.5% growth is coming from these 3 factors. So these aside, I think the remaining business seems to be quite a sharp decline in Q1. You mentioned one of the client-specific issues, which you will continue to face in Q1. But are there any other significant client ramp downs or any other delays that we are seeing because of which this Q1 growth -- organic growth, if I can call the growth beyond these 3 seems to be so weak?

You know DTS HARMAN is fully in our Q4 numbers. So...

[indiscernible] In Q4, that was only 2 months. So on Q-on-Q, this will add another month in Q1, right?

Q4 was all 3 months.

For 3 months. Okay.

Yes. So that is not -- that is the only inorganic piece and our growth for Q1 is -- yes, there are these 2 deals that we've spoken about, which will be there, and it will add to our revenues in Q1. And we've assumed that they will start yielding revenues mid-quarter.

Mid-quarter. Got it. Got it. Got it. This one...

[indiscernible] as organic growth as these are strategic deals is taken. Yes.

Very much, very much point taken. Just my last question, Aparna, on the margins. I think very strong performance on the margins in this quarter despite wage hike and the HARMAN integration as well. Do we believe these margins are sustainable in the coming quarters as well, given that we'll have a couple of these deals, cost takeout deals also that we will be factoring in? Do you believe we will be able to maintain the margins at around the current levels as we have always maintained, as we have always stated that this is our target range?

Yes, there are 3 areas where we are going to be investing in. We've already rolled out the wage hikes effective 1st March. So we will have 2 months incremental impact, which will have to be absorbed, right, in Q1. Two, we are winning some of these large deals, and they are won in a competitive environment. They will come with their share of lower margins, especially as we start these deals, right?

Second, there is -- certainly around capabilities, we've acquired the DTS HARMAN, the Connected Services piece, which will -- which is also putting pressure on margins. And as I look ahead, we will continue to actually accelerate investments, especially around Wipro Intelligence, the platform unit that we have announced. And it will need a lot of investments that we will work through and share with you transparently as we go through the process. As we get -- form our strategy around it, that will also be an area of focus for investments.

Given all this, we will have to drive operational improvements that is a continuous process, as you know. And like I said, maybe we'll see some quarter-on-quarter volatility, but our endeavor is going to be that in medium term, we continue to drive that productivity and cost takeout and deliver on the promise of -- actually AI helping us to deliver our fixed price programs better. And we continue to optimize all other overheads. And as we do that, hopefully, we are able to keep our margins in the medium term in narrow band.

We'll take our next question from the line of Prateek Maheshwari from HSBC Securities.

So, Srini, I've got a couple of questions. So I'm sorry for harping again on Americas 2. Just wanted to understand -- I understand that there's a client-specific issue that you guys have faced in the fourth quarter and will face in the first quarter as well. However, if I look at Americas 2 over a 1-year period or a 3-year period, it seems that there's been a consistent -- there have been multiple client-specific issues that have happened. So just wanted to understand your thoughts on this, if it is a mere coincidence or how -- what are your thoughts basically on this?

And just second question from our side is around the AI partnerships. So we have seen your larger peers have announced their partners probably front-end models like Anthropic, Mistral AI and OpenAI. But we haven't heard a lot from you guys. So just wanted to understand how you guys are planning around this, and if you guys are planning for GTM around these models as well.

Thanks, Prateek. You're right, AI is a central strategy for Wipro. Two quarters back, we had launched Wipro Intelligence, which is a combination of industry and cross-industry and functional platforms and solutions. And this quarter, rather last quarter, we announced the formation of AI native business and platform unit. The reason why we are doing it, as in the last 2 quarters based on our experience, both in terms of industry platforms and the delivery platforms, which is WINGS for run and operate and WeGA for our AI-DC life cycle, which is more on the change and transform side, we have seen a very good traction. The clients feel very comfortable with the way we have put the guardrails, making sure we align the technology to what they are actually using, making sure it is secure, reliable and responsible as well.

Also, in terms of the productivity benefits that we can offer to them, both on the existing engagement and also the new engagements we plan to do. And we will continue to invest in this, and I think Aparna called out as well that Wipro Intelligence and the new AI native business and platform unit is going to pivot us into Services-as-a-Software industry. So while we continue to deliver the services to our clients, this should help us to actually create a Software-as-a-Service through our platform model. We already saw some success with our platforms, be it in health care, be it in banking, insurance, telecom. So we want to see that because the clients are actually feeling very comfortable with the fact that the whole platform is AI native, which is AI-powered and it's able to well integrate into their domains with the kind of agent and agentic operations we're trying to bring in. So that investment will continue, Prateek.

Thanks, Srini. Sir, the first question, if you could share also on Americas 2. So the question was that there's been multiple client facing issues over the years. Just want to understand what your thoughts on that?

Yes. I think this quarter than last quarter, it was something that we called out as well very specifically for the 2 reasons like you mentioned in your question itself. But one is a specific client ramp-up that has not happened, Aparna talked in details about that. But we feel -- and I also answered that question, we feel fairly confident that client come back, because there was some directional change and they wanted to pause before they had the clarity around that.

The second one was something that the account-specific issue that happened, which impacted for us in quarter 1. And in addition to quarter 4. Having said that, if you look at our top accounts, we continue to stay focused on our top accounts with a very clear account management strategy. And in fact, many of our clients are asking us to come back and help them in terms of AI advisory and consulting, in terms of how to navigate in the AI world. So what's important for our accounts team is to be very proactive and leverage Wipro Intelligence and platforms and solutions and kind of help the client through this disruption process.

Srini, if you could allow me to squeeze one more question. I just wanted to ask, you said that you have a positive view on BFSI in APMEA and also in Europe. So I just wanted to ask outside of the client-specific issue that you may face in the first quarter, if you have a positive view on the U.S. BFSI as well.

So I think from an overall -- see, I think the best way for me to reflect, Prateek, in your question is the kind of pipeline that we have. And I did talk about having a very secular pipeline across industries and across markets. And your question specifically to BFSI, if I were to look at Americas and Europe and APMEA and also the Capco, the question that came up, we continue to see very good traction. We continue to see a very good pipeline. And some of this -- what the kind of work that Capco does is very consulting-led and advisory-led. And we also want to see how those implementations for the clients can happen.

And for me, clearly, from a BFSI perspective, right, very clearly, the client wants to invest in AI around data platforms and agentic workflows and security. And while they continue to optimize, but the spend in this specific area around AI, data and cloud continues.

We'll take our next question from the line of Abhishek Shindadkar from Incred Research.

The first question is regarding the contribution for HARMAN. So when we gave the guidance last time, in the third quarter, the 0.8% was the contribution and incrementally 2 months was assumed when we gave the fourth quarter guidance. Can you just quantify what would have been the contribution for this quarter? Or if you can just quantify the organic growth for us? That's the first question. And I'll just ask the second one later.

So your question is around how much did the HARMAN acquisition contribute in Q4? Is that your question?

Yes.

So we actually made a stock exchange filing around the revenues of the organization. You can assume the quarterly run rate around that much.

Understood. That's helpful. The second thing is on the top client and maybe it has been asked, but not just the top, but if I look at the top 5 and if I look at the client metric and the attrition across some of the larger accounts, do you foresee this kind of stopping or halting in the next quarter? Or we may continue to see some challenges in the accounts, larger accounts even in the next quarter?

Yes, I think our overall growth rates also tend to reflect in our top client metric growth rates as well, right? That said, if you like if you had to look at the year-on-year performance of our top client and it's been largely flattish year-on-year constant currency. Top 5 actually has grown on a year-on-year constant currency by 0.2% and top 10 has grown a positive 1.5% on year-on-year constant currency. And therefore, are we unduly worried about the top relationships that we have? No, we are not worried about it.

That said, our constant endeavor is to continue to win with our largest clients in the market. And some of the wins that we have announced even this month are towards that. So you will continue to see us growing and expanding this because this is the way in which our growth will come from. It's our #1 strategic priority. We will work with large clients, and that is the endeavor.

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, sir.

Thank you all for joining the call. In case we could not take any questions due to time constraints, please feel free to reach out to the Investor Relations. Have a nice day. Thank you.

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

Ladies and gentlemen, good day, and welcome to Wipro Limited Q3 FY '26 Earnings Conference Call. [Operator Instructions]. Please note that this conference is being recorded, and the duration for today's call will be for 45 minutes. I now hand the conference over to Mr. Abhishek Jain, Vice President, Corporate Treasurer and Head of Investor Relations. Thank you, and over to you, sir.

Thank you, Yashashri. Warm welcome to our Q3 FY '26 earnings call. We'll begin the call with the business highlights and overview by Srinivas Pallia, our Chief Executive Officer and Managing Director, followed by updates on financial overview by our CFO, Aparna Iyer. We also have our CHRO Saurabh Govil, and our Chief Strategist and Technology Officer, Hari Shetty this call. Afterwards, the operator will open the bridge for Q&A with our management team.

Before Srini 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 expectations and are associated with uncertainties and risks, 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. 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 Srini.

Thank you, Abhishek. Good evening, and thank you for joining us today. A very happy new year to you. Let me start with the broader environment. Before walking you through our quarterly performance and how we are positioning Wipro for an AI-first world.

Across our client landscape, One thing is clear: organizations are reshaping priorities as AI influences how they plan, invest and operate. In fact, AI is now a standing board level mandate led by CEOs who recognized its ability to transform business models, unlock productivity, and create lasting competitive advantage.

We are also seeing the same themes continue from past quarters in our deal pipeline. Cost optimization, vendor consolidation and a clear shift towards AI-led transformation. In quarter 3, we also marked two important milestones for Wipro. In December, we completed 80 years as a company. And in October, we celebrated 25 years of being listed on the New York Stock Exchange.

These milestones reflect a legacy of strong governance, value and integrity, a foundation of trust that continues to differentiate us with our clients, partners and investors. Turning to quarter 3 performance. Our IT Services sequential revenue at $2.64 billion grew 1.4% on a constant currency basis. Excluding HARMAN DTS acquisition, revenue grew 0.6% in constant currency terms. Growth was broad-based with three of our four markets and four of our five sectors reporting sequential gain.

Americas 1 delivered sequential and year-on-year growth driven by strong performance in health care, consumer and LatAm. Americas 2 saw a sequential decline. Europe grew sequentially in quarter 3, led by a ramp-up of the earlier announced mega deal. We're also seeing good traction in the U.K. and Western Europe. APMEA grew sequentially and year-on-year, led by India, Middle East and Southeast Asia.

PFSI continues to show strong traction with the ramp-ups and new wins. CAPCO revenue was impacted by furloughs and remained flat year-on-year. Our operating margin at 17.6% expanded 0.4% over adjusted quarter 2 margin and 0.1% year-on-year. We closed $3.3 billion in total contract value and $871 million in large deal bookings. Last quarter, I introduced Wipro Intelligence. It's a unified approach to delivering AI-powered transformation across industries.

This approach is anchored on 3 strategic pillars. First, industry platforms and solutions. We are building consulting-led AI solutions across sectors. For example, platforms like PayerAI in health care, NetOxygen for lending and AutoCortex for automotive. These solutions help streamline operations, improve customer outcomes and open up new avenues for growth. Second, our delivery platforms accelerate AI adoption at scale.

WINGS, part of our Wipro Intelligence, brings AI into the heart of operations from application management to infrastructure support and business process operations. Vega adds AI-driven capabilities across the development life cycle from wide coding to model tuning and data pipeline. Together, these platforms help our clients modernize faster and operate smarter.

Third, the Wipro Innovation Network. This connects our labs with partners, start-ups, universities and deep tech talent around the world. This ecosystem helps us explore new technologies and build solutions for the future. We launched innovation labs in 3 cities in the U.S., Australia and the Middle East, expanding our network, growing our global footprint and strengthening our role as a trusted innovation partner.

We are also partnering with client GCCs to drive transformation and turn their call centers into high-impact innovation labs. Let me now share 2 examples of large deal wins that we had, leveraging Wipro Intelligence. First, a leading global education provider in the U.K., which is expanding rapidly across markets has chosen us as a strategic partner for a multiyear transformation.

The goal is to build a single secure intelligent operating model that can scale with their growth and improve stakeholder experience. Using WINGS, we will standardize core processes, embed automation and AI-driven insights and optimize costs through a global delivery model. Second, a leading U.S.-based fitness technology company has selected Wipro for a multiyear transformation to accelerate its shift to a subscription-based wellness model and support global expansion.

We will use both WINGS and Vega to embed AI and automation across IT infrastructure and core functions, driving efficiency, productivity, growth and better customer experiences. These engagements highlight a clear trend. Clients are bringing us in much earlier and recognizing the step change in the way we deliver and innovate. I would now like to update you on HARMAN DTS. First, a warm welcome to all HARMAN DTS employees joining us.

With the acquisition now complete, we have added engineering and AI capabilities that truly complement what we do. This strengthens our engineering global business line and helps us accelerate AI-driven product innovation for clients. The integration also opens new regions and high-growth industries and allows us to take on larger, more complex transformation programs. As our teams come together, we look forward to entering new markets, building deeper client relationships and turning innovation into long-term value.

Finally, guidance for quarter 4. In quarter 4, we are projecting sequential IT services revenue growth of 0% to 2.0% in constant currency. With that, I will hand it over to Aparna for the detailed financials.

Thank you. Over to you, Aparna.

Thank you, Srini. Good evening, ladies and gentlemen, and wish you all a very, very happy new year. Let me share a quick update on the financial performance. Our IT services revenue for quarter 3 grew 1.4% sequentially in constant currency terms and 1.2% sequentially in reported currency. Revenue grew 0.2% year-on-year in reported terms, while declining 1.2% year-on-year in constant currency terms.

Our constant currency revenue growth numbers included 0.8% as contribution from the HARMAN DTS acquisition that was closed in quarter 3 '26. Our operating margin for the quarter was 17.6%, an expansion of 40 basis points over the adjusted operating margin for Q2 and 10 basis points improvement on a year-on-year basis. I would also like to highlight that this is one of our best margin performance in the last several quarters.

As we move to Q4, we will need to factor for incremental dilution of HARMAN DTS. That said, our endeavor, as always, will be to maintain the margins in a similar band as in the last few quarters. Adjusted net income for the quarter was INR 33.6 billion, and adjusted EPS for the quarter was at INR 3.21, an increase of 3.5% quarter-on-quarter and flat year-on-year. Moving on to our strategic market unit and sector performance.

All the numbers I will share will be in constant currency. Americas grew 1.8% sequentially and grew 2.8% on a year-on-year basis. Americas 2 declined 0.8% sequentially and 5.2% on a year-on-year basis. Europe grew 3.3% sequentially and declined 4.6% on a year-on-year basis. APMEA grew 1.7% sequentially and 6.6% on a year-on-year basis. From a sector standpoint, BFSI grew 2.6% sequentially and 0.4% year-on-year.

Health grew 4.2% sequentially and 1% year-on-year. Consumer grew 0.7% sequentially while declining 5.7% year-on-year. Tech and Com grew 4.2% sequentially and 3.5% on year-on-year terms. EMR declined 4.9% sequentially and 5.8% year-on-year. To give an added color, Capco was flat on a year-on-year basis in Q3. Before I move on to other financial parameters, I'd like to draw your attention to 2 specific one-off charges that we took in our P&L that also impacted our net income.

These changes are not included in our -- these charges are not included in our IT Services segment margins. First is an increase of INR 302 crores towards gratuity expenses due to implementation of the new labor code. Second is regarding the restructuring exercise that was completed during the quarter and its impact is about INR 263 crores. I'd like to confirm that we've now completed the restructuring we wanted to do and do not anticipate any further charges.

Our operating cash flow continued to be higher than the net income and stood at 135% of net income for quarter 3. Our gross cash, including investments is now at $6.5 billion. Our net other income in Q3 grew 15% sequentially. Accounting yield for the average investments held in India was at 7.2%. Our effective tax rate at 23.9% for Q3 '26 was better than the quarter -- same quarter last year of 24.4%. In terms of our guidance, we would like to reiterate what was stated by Srini.

We expect our revenue from the IT Services business segment to be in the range of $2.635 billion to $2.688 billion. This translates to a sequential guidance of 0% to 2% in constant currency terms. Our guidance includes the incremental 2 months of revenue from HARMAN DTS. It is impacted by fewer working days in Q4 and certain delayed ramp-ups in some of the large deals that we won earlier in the year. Lastly, I'd like to share with you that in our recently concluded Board meeting, the Board of Directors have declared an interim dividend of INR 6 per share.

With this payout, the cash distributed to our shareholders during the current financial year will be in excess of $1.3 billion, and we will be able to significantly exceed the minimum threshold that we had laid out in our capital allocation policy for the block ending financial year 2026. With that, I'm going to ask Yashasvi to open it up for Q&A.

[Operator Instructions] We'll take our first question from the line of Nitin Padmanabhan from Investec.

I had a couple of questions. So one is, I think this quarter, we lost almost $24 million of revenue in energy manufacturing resources. Just wanted your thoughts on that vertical. And how do you see the deal pipeline there? When do you think this can sort of turn around?

The second is you alluded to some delays in ramp-ups impacting growth for next quarter to give some -- if you could give some color there. I presume this is related to the large deals. By when do you see this sort of beginning to ramp going forward? And third, where are we expecting to have the wage hike cycle. Those are the three.

So Nitin, I'll take your second question. And then on EMR, I'll ask Srini to answer, and on attrition, we have Saurabh here, he could take that on hike -- salary hike sorry.

Nitin, in terms of our large deal conversion, each deal is different. One of the significant deal wins we had in Q4 of the last financial year, Phoenix is now fully ramped up and its revenue is fully realized and it's part of our quarter 3 performance. So that's on track. Some of the other deals, given the nature of the deals that we won, we've earlier also highlighted that these deals will take a few quarters to ramp up. So it's a question of it coming in through the course of the next few quarters. And therefore, we have called it out saying that in Q4, we may not be able to realize the full impact and therefore, we're calling it out.

The other lever that is playing out is typically furloughs do come back, but Q4 continues to have lower working days, which is not really sometimes offsetting for those furloughs. And therefore, we've given you the guidance we have. But these deals should continue to convert. This deal a little different. We are confident it will take some time, but it will ramp up. Srini, You want to talk on EMR and then Saurabh can talk.

Thanks, Aparna. Happy New year, Nitin. As far as EMR is concerned, our performance in this sector clearly has been impacted based on the macroeconomic uncertainty, we have seen some during tariff related and also some disrupted supply chain issues that we faced. However, our pipeline continues to remain strong in the sector.

And essentially, the significant pipeline is around either vendor consolidation or cost takeout. And if I were to give a little bit of color to our specific segments, we have -- we see good momentum in energy in both Americas and Europe, and as far as manufacturing is concerned, we are seeing that in Europe. Also, our Capco business, which is doing some -- is also seeing some traction on the energy consulting side. So net-net, that's the situation that we have right now with the EMR, Nitin. Over to you, Saurabh.

Salary hikes, we will take a call in the next few weeks in terms of doing it. Our intention is to look at it this quarter, but we'll confirm it in the next couple of weeks.

Perfect. That's helpful. Just one clarification. Do you think EMR should start getting back to growth sometime next year? That's the last question from my end.

As far as EMR concerned, Nitin, I'll just repeat that. One is the pipeline. Like I said, specifically, we have good momentum on the pipeline in energy in both Americas and Europe. And as far as the manufacturing is concerned, it's in Europe. I think our focus right now is to convert these deals and then that should drive the revenue growth for us. And we are just getting focused on winning some of those deals, Nitin.

Perfect, very helpful. Thank you so much and all the very best.

Thank you.

Thank you.

Next question is from the line of Vibhor Singhal from Nuvama Equities.

Congrats on a solid performance. So Srini, my question was mainly on the -- basically the consumer vertical. You mentioned about the challenges in the EMR vertical. Banking has been doing well for us. In the consumer vertical, the growth was tepid in this quarter. We continue to decline on a Y-o-Y basis. How do you see the outlook in this vertical?

We know this vertical also has been impacted a lot by the tariff uncertainty that has basically impacted the producers. But any -- in your conversation with the clients in terms of our interactions in the pipeline, do you see it turning the corner in coming quarters? Or do you think it will be some time before some clarity emerges in this vertical?

Thanks, Vibhor. If you look at our consumer sector, clearly, if you recollect, I talked about it before as well that the tariffs had an impact on this, and that is reflected in our numbers. And also, if you reflect, there was a large SAP program, which was put on hold last year by our customers.

And again, the client is yet to reinitiate. And that is one of the things that is impacting our year-on-year performance as well in this particular thing in this particular market sector. However, the overall trend that we see right now is mixed here for us in consumer. Some of the wins we had earlier this year is slowly ramping up, and that should support the growth in this sector. I do not have -- from a quarter 4 perspective, whatever growth we are seeing, that's baked into our forecast number.

And similar thing on the -- basically [ tech ] vertical. I know it's not that big a vertical, but I think both tech and health vertical appear to be doing good. Any specific project ramp-up that we saw in this quarter, which led to this growth? Or do you think it's a growth which we can sustain in the coming quarters as well?

Sorry, which sector did you refer to Vibhor?

Aparna tech and the health care verticals, both of them separately.

In some sense, in health care, we've been consistently doing well, and we've had both in our year-on-year performance. Seasonally, obviously, we have the open enrollment season that really does improve our health performance in Q3. So that has also added to the performance.

In terms of our tech and, we've continued to do well in some of our large technology players. And there is a little bit of the HARMAN acquisition numbers, which is also reflected in the overall sector's performance. And I think communications in general have done -- has been better for Europe and APMEA. That's the color I can give you.

Perfect. That's really helpful. But -- just one last question from my side. You mentioned about the few headwinds in Q4 that you would be facing. And if I look at our guidance, 0% to 2% in the consolidated level, and if we were to, let's say, extrapolate the 2-month incremental impact of HARMAN acquisition, the organic growth will probably fall somewhere between minus 1.5% to plus 0.5%. Is that the right understanding? And is the reason for that very much as you mentioned in your opening remarks as well.

Vibhor for some reason, we are not able to hear it clearly. Can you just slow down the question?

Yes, can you hear me?

I'm sorry, his line is disconnected. We'll move on to the next question. [Operator Instructions]. Next question is from the line of Ravi Menon from Macquarie.

Congrats on a really strong margin performance this quarter. Now that you've come to sequential growth even in a seasonally weak quarter, I surprised that organically, we seem to be hinting at a slight decline possibly at the lower end of our guidance next quarter.

And Capco should also be coming out of from the furloughs that it's had this quarter, right? So could you talk a bit about that? And beyond that, do you think that sequential growth is possible looking at the pipeline and the slight improvement possibly if we have on the demand environment?

So I will ask Srini to talk through the demand environment. You know we guide based on the visibility that we have at the start of the quarter. I've shared with you that some of the furloughs that typically does come back has been partially offset by the lower working days that we are also seeing this year. And to that extent, we are seeing some softness continue, right? But that said, our endeavor would be to obviously execute the quarter better through this next 90 days, right?

So Ravi, if I look at it, there is no significant change in the demand environment. specifically the discretionary spend as the uncertainty continues. Second, January is the time when many of our customers will finalize their budgeting process. We'll have a much better understanding and view of where they are going to spend.

But having said that, if I look at the current pipeline that we have, a significant piece of this pipeline is around cost optimization and vendor consolidation, which are the key levers for our clients. And they are using this as a lever for savings, and they want to reinvest these savings into AI capabilities and also some of the advanced transformational projects that they want to do.

For us, we believe this is an opportunity for us to capitalize on this, and we'll make strategic bets in each of these sectors and markets, continue to invest in our clients to do this. From a full year visibility, like Pana said, there is uncertainty in the market and customer continue to remain in wait and watch mode. At this stage, our guidance represents best visibility we have. And if there are any further updates, we will definitely share, Ravi.

And the -- you talked about vendor consolidation and cost takeout and clients actually using those savings for transformation. Are they actually giving both to the same vendor? Or do they prefer to split that out? What that you're seeing at least in the wins that you have?

So Ravi, it's a mix. There are certain clients who are doing that and continuing with the current partners. And there are certain clients who are changing, and there are certain clients who are increasing the scope and using multiple partners as well. So it clearly varies from client to client.

And one last question on the HARMAN DTS. Which segments do you think this really improves your possibility of win rates?

So Ravi, if I understand the question, how the HARMAN DTS acquisition will help us, right?

Correct. Yes. which sectors do you expect the win rates to improve?

So clearly, HARMAN brings in both design to manufacturing capabilities and AI-powered product innovation. In that context, clearly, the sweet spot for a combined unit is, especially the engineering global business line that we have is the tech and com sector. That's, I think, primarily the one where we see a significant opportunity. And the other 3 sectors, I would pick are health, consumer and EMR, Ravi.

We'll take our next question from the line of Sandeep Shah from Equirus Securities.

Just the first question is because of delay in ramp-up of deal wins of the last 2, 3 quarters, is it fair to assume if those ramps up in the first quarter next year, then the seasonal softness, which generally comes in the first quarter may not be true next year?

So Sandeep, yes, in some sense, that will be the objective that we ramp up enough so that we can offset for some of the weakness that could arise. That said, we don't guide for Q1, but we would like to clarify that it's just delayed and some of those do take time to ramp up and confident that it will ramp up and we will keep you posted.

Okay. Just Aparna, I wanted to understand the guidance on the margins, which you said narrow band compared to Q3 margins or earlier range?

So you again know we don't guide for margins. You've seen our performance over the last 8 quarters. We've consistently improved, right? I think all credit to the team, we have been fairly resilient on margin, and we will continue our endeavor to keep it. But that said, we will have to invest for growth. And that's the #1 priority, right?

We've acquired DTS HARMAN, and that will mean an incremental dilution to our margins that we will have to absorb. So we continue to chase and win large deals and they come with a different margin profile. And these are very important investments we'll have to make. And there will also be decisions that will have to be made on wage increases that Saurabh spoke of. A lot of moving parts.

Our endeavor is going to be to make sure that we keep it in that band of 17% to 17.5%. If you recall, we had said that while we stated that band with the acquisition, we will see pressure to that. Right now, we are continuing to hold that band, which itself is a positive.

But like I said, we will have to take it quarter-to-quarter. There will be some quarters where we will have to invest in our people, in our deals, in our clients and for growth. So we will make those trade-offs.

Yes. Just last couple of questions. The deal TCV in this quarter, both on large deal and total has been slightly softer versus very strong momentum in the earlier 3 quarters.

So any reason where is it the client decision-making being slowed down or it's the intense competitive pressure, which has led to some decline in the win ratio?

Yes. Typically, like I said, some of these deals, they tend to club, right? We are contesting a lot of large deals. They are in the cycle. We are hopeful of closing them. You will continue to see the momentum on large deal wins. At $1 billion or maybe we are just shy of $100 million. That's been the normal trajectory.

Obviously, in the first half, we had a few mega deal wins, 4 to be specific. We hope to win more, right? So I wouldn't read into it in terms of slower decision-making cycle or competitive pressure. I would just say that they tend to lump up. We have a lot of good deals, and we will see the momentum pick up.

Okay. And just the last question, Aparna with the war chest of $6.1 billion, though we are distributing dividend, but is it fair to assume that buyback continues to remain one of the options in the mind to give this excess cash back to the shareholders?

We have said that buyback will continue to be a means by which we will return cash to our shareholders. It's certainly an option on the table, and we will consider it at an appropriate time.

Okay, thanks and all the best.

Thank you.

Next question is from the line of Kumar Rakesh from BNP Paribas.

I have just one question. Srini, do you think given the kind of mix which you have, both of vertical and the capability at Wipro, you would be able to get back in line with the industry average revenue growth -- or would it make sense to just slow down your margin, get to mid-teens sort of a margin, be able to better compete with some of your peers, maybe peers as well or maybe acquire some of the companies to reset the mix. What's your thought on that?

Kumar, clearly, first, if you look at our inorganic strategy, it is very clearly aligned to the strategic priorities we called out. We constantly look for sectors and the markets combination in terms of where we need to invest, where we need to acquire new capabilities. And if you look at specifically HARMAN DTS, clearly, it's giving us a combination of both what I would call as capabilities and also a few new markets that they are already in.

So we will -- we continue to look at opportunities for us, Kumar, as we continue to move forward. Our strategy is both growing our organic and inorganic and continue to invest in inorganic. And you are right, we do have cash. And as far as that is concerned, it is an opportunity for us to look at the market, scan the market and do the right investment that makes it a win-win for us.

Next question is from the line of Rishi Jhunjhunwala from IIFL.

Just wanted to understand ex of HARMAN doesn't look like there would be much of a sequential growth in 4Q and 1Q, as we were discussing earlier in the call, historically has had some weak seasonality. I noticed a pretty sharp increase in our overall headcount in this quarter. So just wanted to understand, given the outlook for the next couple of quarters, what is driving this? And how do we read that?

The headcount for this quarter is primarily driven from 2 things. One is the acquisition, DTS acquisition. And second is one of the large deals in Phoenix, we had done as reding. I think when we ramped up the deal. So that's been the reason for seeing the ramp-up in this quarter. Otherwise, from a hiring standpoint and supply side, I don't see a challenge.

Attrition has been at 2 percentage low for the quarter, trending the same in the next quarter. We are going to go to the campuses again. We had taken a bit of a hiatus in this quarter -- next quarter. So from a supply side, utilization is looking up net of the furloughs, which we -- net of the leaves which people have taken. So we are fairly confident in the headcount supply side to manage the demand.

Understood, sir. The second question is just wanted to understand this restructuring cost that we have booked in our financials. Is it in the same nature as what we did in 1Q? And if not, if you can give some color around that?

The restructuring basically has pivoted on obsolete skill and primarily in 2 areas. One is in Europe, where we have a tough labor laws and second is in Capco. These are the 2 big areas that we did that, similar to what we have done in Q1.

Understood. And just last thing, there was a bookkeeping question. There is a spike in D&A in this quarter. Any particular reason? And is that a normalized level going forward as well?

We have taken a provision for bad debt charge. And I think that's the line item that will show an increase. That's in the usual course of business. You should see that go off starting next quarter.

Aparna, I was asking about depreciation and amortization?

Okay. And typically, we do assess the intangibles every year. And if -- based on the expected forecast, et cetera, sometimes we tend to accelerate such amortization. In this quarter, we did accelerate some amortization towards one of the earlier acquisitions, and that's reflected. And that should also normalize. However, we will have an increased amortization charge coming in for the DTS HARMAN. So yes, you should wait for the next quarter to get some more normalized then...

Next question is from the line of Kawaljeet Saluja from Kotak Securities.

I had just a couple of questions for you. First is that at $6.5 billion, it seems that you have plenty of excess cash. So how do you intend to flush this excess cash out? Would it be through dividends or is buyback on the cards? And if buyback is on the cards, then what are the considerations set required to move towards that path? That's the first question.

Okay. You're right. We did note that we've been having excess cash. And as a result of that, last year, we had increased our capital allocation. And we've said that we would start increasing our dividend payout. We did that. We paid out INR 6 in the last financial year. This year, we've almost paid INR 11 per share, which is about $1.3 billion. We should opt -- nearly account for like -- if I had to just annualized our YTD EPS is about 88%, 89% of that.

So at least what the increased dividend is doing is we're not adding to the excess cash and leaving enough for watches for whatever acquisitions and organic investments we need to make. Is buyback an option to still consider in terms of returning excess cash to shareholders? Indeed, it is.

And what are the considerations for that, we will have a discussion with the board on that, and we will come back considerations include whether we have enough net cash available in order to pursue the investments we need, and we will keep the market posted, Kawal. But other statutory considerations are quite in the place for buyback.

Can you repeat that last part again? I missed it.

I said there are some statutory considerations that you can't do a buyback within 12 months. You can't do it if there is a merger pending for NCLT, et cetera. None of that is -- I mean, all of that is conducive, Kawal, for us..

So let's say, if you had to theoretically decide to do a buyback, today, you can do that. Whereas in the past, there was an NCLT process or merger, which would have acted as an impediment -- there is no such impediment. I mean you can do that as and when you feel it's the right time. Is that the way to look at it?

Yes. Absolutely.

Noted. The second question is for you and Srini. Let's say, if those 2 mega deal ramp-ups were not delayed, then what would the guidance have been for, let's say, the March quarter? Any way to detail it out either quantitatively, which may be difficult or even qualitatively, that will be very helpful to understand the growth trajectory.

Obviously, we can't talk about it quantitatively, Kawal. And qualitatively, like I said, it's only delayed. these ramp-ups should happen. And each deal is different in its nature, right? For example, something like Phoenix, which was entirely net new and fully where there was a clear go-live date and readiness, we've been able to do that, and that's fully into our revenue starting Q3.

So that played out perfectly to plan, right? Now in some of the other larger deals that -- or mega deals that we could be winning in terms of vendor consolidation, these deals typically have both an element of renewal and new. Obviously, the renewal is fully in and that continues, and we're not seeing any changes in terms of the expectations.

In case of the new, the element of new, some of these things are taking longer, either due to client situations where there could be some changes in the client environment that they're going through and therefore, there is a little bit of a delay in terms of the timing of the ramp-up or it could just be the nature of how it is going to play out, right? Because we will have -- it will take 6 quarters. That's what I earlier alluded to. So it is going to take that time. And we are hopeful that this will flow through in the coming quarters.

Noted. Thank you so much. All the best.

Thank you. Thank you Kawal.

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, sir.

Yes. Thank you all for joining the call. Have a nice day. Thank you.

Thank you. Thank you, members of the management team. On behalf of Wipro Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Welcome, everyone, to Wipro's Third Quarter Earnings press conference. For those of us who are joining virtually, good morning, good afternoon, good evening. My name is Nisha Chandrasekaran. And on behalf of Wipro, we'd like to wish you all a very Happy New Year. Joining me on stage is our Chief Financial Officer, Aparna Iyer; our Chief Executive Officer and Managing Director, Srini Pallia; and our Chief Human Resources Officer, Saurabh Govil. We will begin with opening remarks from our CEO, followed by a financial review from our CFO. Post that, we'll open the floor for all of your questions. With that, let me invite our CEO and Managing Director, Srini Pallia.

Thanks, Nisha. Good evening, and thank you for joining us. A very Happy New Year to all of you. Let me start with the broader environment before walking you through our quarterly performance and how we are positioning Wipro for an AI-first world. Across our client landscape, one thing is very clear. Organizations are reshaping priorities as AI influences how they plan, invest and operate. In fact, AI is now a standing Board-level mandate led by CEOs who recognize its ability to transform business models, unlock productivity and, of course, create lasting competitive advantage. We are also seeing the same themes continue from the past quarters in terms of our deal momentum, cost optimization, vendor consolidation and a very clear shift towards AI-led transformation.

In quarter 3, we also marked 2 important milestones for Wipro, which I'm very proud of. In December, we completed 80 years as a company. And in October, we celebrated 25 years of being listed on the New York Stock Exchange. In fact, these milestones reflect a legacy of strong governance, values and integrity, a foundation of trust that continues to differentiate us with our clients, our partners and our investors. Now turning to quarter 3 performance. Our IT services sequential revenue at $2.64 billion grew 1.4% on a constant currency basis. Excluding HARMAN DTS acquisition, our revenue grew 0.6% in constant currency terms.

In fact, growth was broad-based with 3 of our 4 markets and 4 of our 5 sectors reporting sequential gains. Americas 1 delivered sequential and year-on-year growth, driven by strong performance in healthcare, consumer and LatAm. Our Americas 2 saw a sequential decline. Europe grew sequentially in quarter 3, led by ramp-up of the earlier announced mega deal. We are also seeing good traction in the U.K. and the Western Europe markets. APMEA grew sequentially and year-on-year, led by India, Middle East and Southeast Asia. BFSI continues to show strong traction with ramp-ups and new wins. Capco revenue was impacted by furloughs and remained flat year-on-year.

Our operating margins at 17.6% expanded 0.4% or adjusted quarter 2 margins and 0.1% year-on-year. We also closed $3.3 billion in total contract value and $871 million in large deal bookings. If you recollect, last quarter, I introduced Wipro Intelligence. You would have seen the video and if you remember that. It is our unified approach to delivering AI-powered transformation across industries that we serve. This approach is anchored on 3 strategic pillars: one, industry platforms and solutions. We are building consulting-led AI solutions across sectors. For example, platforms like PayerAI in healthcare, NetOxygen for lending and AutoCortex for automotive.

These solutions help streamline operations, improve our customer outcomes and open up new avenues for growth. Second, our delivery platforms accelerate AI adoption at scale. I talked about WINGS last quarter. WINGS brings AI into the heart of our operations from application management to infrastructure support and business process operations. WeGA, another delivery platform from Wipro Intelligence, adds AI-driven capabilities across the development life cycle, be it software development life cycle or product engineering development life cycle and from Vibe Coding to model tuning and data pipelines.

Together, these platforms help our clients modernize faster, operate smarter. Third pillar is the Wipro Innovation Network. It connects our labs with partners, start-ups, universities and deep tech talent around the world. This ecosystem helps us explore new technologies and build solutions for the future. In December, we launched innovation labs in 3 cities in the U.S., Australia and Middle East, expanding our network, growing our global footprint and strengthening our role as a trusted innovation partner. We are also partnering with client GCCs to help drive transformation and turn their cost centers into high-impact innovation hubs.

Now let me share 2 examples of the large deals that we have won, leveraging Wipro Intelligence last quarter. First, a leading global education provider in the U.K., which is expanding rapidly across markets has chosen us as its strategic partner for a multiyear transformation. Their goal was to build a single, secure, intelligent operating model that can scale with their growth and improve stakeholder experience. Using Wipro Intelligence WINGS, we will standardize all their core processes, embed automation and AI-driven insights and helping optimize costs through their global delivery model.

In my second example, a leading U.S.-based fitness technology company has selected us for a multiyear transformation to accelerate their shift to a subscription-based wellness model, which is actually catching up and support global expansion. Here, we will use both the delivery platforms, WINGS and WeGA, to embed AI and automation across their IT infrastructure and all of their core functions, helping drive efficiency, productivity, growth and of course, customer experience. These engagements highlight a clear trend.

Our clients are bringing us in much earlier and recognizing the step change in the way we deliver and innovate. I would now like to update you on HARMAN DTS. First of all, a warm welcome to all HARMAN DTS employees joining us. With this acquisition now complete, we have added engineering and AI capabilities that truly complement what we do. This, in fact, strengthens our engineering global business line and helps us accelerate AI-driven product innovation for our clients. In fact, this integration also opens new regions and high-growth industries and allows us to take on larger and more complex transformation programs. As our teams come together, we look forward to entering new markets, building deeper client relationships and turning innovation into long-term value. Finally, the guidance for quarter 4. In quarter 4, we are projecting sequential IT services revenue growth of 0% to 2% in constant currency. With that, I will hand it over to Aparna for the detailed financials. Thank you.

Thank you, Srini. Good evening, ladies and gentlemen, and wish you all a very, very Happy New Year. Let me share a quick update on the financial performance for the quarter ended 31st December 2025, after which we will open up the floor for questions. Our IT services Q3 revenues grew 1.4% sequentially in constant currency terms and 1.2% sequentially in reported currency. It also grew 0.2% year-on-year in reported currency. Our constant currency revenue growth numbers included 0.8% contribution from the HARMAN DTS acquisition that was closed in quarter 3 of '26.

Our operating margins for the quarter was at 17.6%, an expansion of 40 basis points over the adjusted operating margins for Q2. It also expanded 10 basis points on a year-on-year basis. I would like to highlight that this is one of our best margin performances in the last few years. As we move into Q4, we will need to factor for the incremental dilution of HARMAN DTS acquisition. Our endeavor, as always, will be to maintain the margins in a similar band that we have delivered in the last few quarters.

Adjusted net income for the quarter was at INR 33.6 billion, and adjusted EPS was at INR 3.21. This is an increase of 3.5% sequentially and flat year-on-year. Moving on to our market unit and sector performance. I will share some of the commentary. All the numbers that I will share are in constant currency. Like Srini said, this has been a fairly broad-based performance with 3 of our 4 market units growing quarter-on-quarter and 2 of the 4 market units growing year-on-year. Americas 1 grew sequentially by 1.8% and grew 2.8% on a year-on-year basis. Americas 2 declined 0.8% sequentially and 5.2% on a year-on-year basis.

Europe grew 3.3% sequentially and declined 4.6% on a year-on-year basis. APMEA grew 1.7% sequentially and grew 6.6% on a year-on-year basis. Now for the sector performance. BFSI grew 2.6% sequentially and 0.4% year-on-year. Health grew 4.2% sequentially and 1% year-on-year. Consumer grew 0.7% sequentially while declining 5.7% on a year-on-year basis. Technology and Communication grew 4.2% sequentially and 3.5% year-on-year. EMR declined 4.9% sequentially and declined 5.8% year-on-year. You can note that 4 of our 5 sectors grew sequentially and 3 out of our 5 sectors grew year-on-year.

Further, Capco growth was flat on a year-on-year basis for the quarter. Before I move on to other financial parameters, I would like to draw your attention to 2 specific one-off charges that we have recorded in our P&L for the current quarter. These charges are not included in our IT Services segment operating margins, but have impacted our net income and EPS. First is an increase of INR 302 crores for gratuity expenses due to the implementation of the labor code. And second is regarding a restructuring exercise that was completed during the quarter and the impact of this is about INR 263 crores.

I would like to confirm that we have now completed the restructuring that we want to and do not anticipate any further charges. Our operating cash flow continues to be higher than the net income and stood at 135% of our net income. Our gross cash, including investments, was at $6.5 billion as of 31st December. In Q3, our net income -- our net other income rose 15% sequentially. Accounting yield for the average investments held in India was at 7.2%. Our effective tax rate was at 23.9% for Q3 '26 versus 24.4% same time last year. In terms of guidance, to reiterate what was stated by Srini, we expect our revenue from IT Services business segment to be in the range of $2.635 billion to $2.688 billion. This translates to a sequential guidance of 0% to 2% in constant currency terms.

Our guidance includes the incremental 2 months of revenue from the HARMAN DTS acquisition. It is impacted by fewer working days in Q4 and delay in ramp-ups in some of the large deals that we had won earlier this year. Lastly, I would like to share with you that in our recently concluded Board meeting, the Board of Directors have declared an interim dividend of INR 6 per share. With this, the cash distributed to our shareholders during the current financial year will be in excess of $1.3 billion, and we've been able to significantly exceed the minimum floor in our capital allocation policy for the block for the year ending FY 2026. With that, I'm going to hand this over to Nisha for Q&A.

Thank you, Aparna. We'll open the floor for your questions. For all the journalists outside of Bangalore who have joined us on Teams, please send us your questions on the chat. For journalists present in the room, please raise your hand and the microphone will come over to you. Please introduce yourself before you ask your question. Rishabh, do you want to go first?

Happy New Year. So you have increased your guidance better than earlier. You've increased your guidance and your revenue is better than -- better Q-o-Q and Y-o-Y. So what are you hearing from clients? And would FY '27 be better than FY '26? On the AI front, would you like to quantify as your -- some of your peers have done? And if not, would you like to comment on whether AI revenue is better than your traditional IT work? Saurabh for you, the restructuring that Aparna spoke of, if you would like to quantify the number? And Srini, the total TCV and large deals is low -- has declined both sequentially and Y-o-Y. Are we seeing an impact from AI on that front?

Thanks, Rishabh. Happy New Year to you as well. I was missing you last -- Happy New Year to you as well, Rishabh. I was missing you last quarter. Were you hiking somewhere? Okay. So as far as revenue is concerned, like I talked about and Aparna also talked about, specifically in quarter 3, we had a very secular growth across 3 of the 4 SMUs and 4 of the 5 sectors. That's data point number one. Second, if you look at -- I'll just talk about the bookings, and then I'll go back to the -- what I'm seeing coming in, right? Clearly, if you look at the bookings as far as the TCV is concerned for quarter 3, we were at $3.3 billion. However, if you look at from a YTD perspective, we were around $13 billion, which is a 25% year-on-year. So from that perspective, I think the trend of our pipeline continues.

In fact, today, if you ask me, the pipeline is very strong. In fact, it's a combination of both large deals and smaller deals as well. And this is also, again, secular across the markets and across the industries. And if you look at the kind of pipeline that we have, I would classify one is clearly vendor consolidation continues from 2025 to 2026. Also what I see is more and more of AI coming into picture. And the way I think our clients are looking at AI is more about how do they want to reimagine their process or rewrite their applications. So a lot of companies are looking at how do we modernize their applications and a lot of companies are looking at how do I relook at my entire customer experience, employee experience journeys and how do I leverage AI to improve our productivity, experience, velocity and, of course, cost.

So AI is becoming right and center. Every opportunity that we have in the pipeline, it's going to be AI first, be it run and operate, be it change and transform or if it's any -- of course, any AI-led projects, be it around advisory services, to do with data, AI, security or change management or if you look at specific projects around modeling, data modeling, data curation, right, specific projects to actually infuse AI to change a particular process and so on and so forth. So I think AI is going to be right and center. So there is no correlation between the bookings that you talked about because it's a healthy trend that we had for this year, and AI continues to be right and center. I hope I covered all your questions, Rishabh.

Restructuring, Aparna called out, as technology evolves, you have to look at some obsolete skills focused on 2 areas, one geography, one business. One was Europe, where we had taken and second was Capco. We had done this exercise in this quarter to take actions against those people.

Happy New Year to all of you. I'm Shristi Achar from Economic Times.

Sorry, could -- name please?

Yes. I'm Shristi from Economic Times. So building on Rishabh's question, so this is the second quarter where we have seen a sequential decline as far as the TCV is concerned. So could you give us a sense of why that is happening? And also what your outlook is as far as client spending is concerned? Are they looking forward to making more spends or not? Or what is the demand outlook looking for you? And also secondly, how much -- if you could give a sense of how much of the HARMAN acquisition was based -- baked into the guidance, please?

So 1 and 3, I'll leave it to Aparna. Let me talk about the client spending, right? See, January is the time when most of our clients are doing the budgeting process, and we'll have a much better clarity in terms of the discretionary spend. Having said that, clients are definitely looking to take cost out through vendor consolidation and through, what I would say is, bringing the efficiency and productivity through AI into their existing run and operate situations and use -- leverage that to do more and more of AI projects, whether it could be modernization of their code or it could be anything to do with the data, data curation and so on and so forth. So to me, from a demand outlook perspective, like I said, very strong pipeline that we have and this pipeline is across sectors and across markets. So I don't see any change in that aspect. But discretionary spend is something we are closely watching.

Yes. So Shristi, your first question was around the TCV decline. Like Srini spoke about it, year-to-date, our TCV bookings were $13 billion overall, which is growing well over 20% year-on-year. Our large deal bookings at $6.3 billion has also grown nearly like north of 50% year-on-year. So we've had very good -- 2 very strong quarters. And typically, large deals tend to lump up, right? So if you look at our earlier quarters, large deals has always been in the range of $1 billion. And that's why you're kind of seeing this like a quarter-on-quarter decline. But if you had to really look at it year-to-date, which is perhaps the right way of looking at it, our performance is quite strong, and I would not read too much into the quarter performance. And the pipeline also continues to be...

Yes, Aparna, just one more data point I wanted to add is, we had 4 mega deals in the first half of the year, okay? That also shows the numbers in that context. So quarter 1, we actually had a very strong momentum in mega deals and followed by quarter 2.

Yes. So on your second question of around HARMAN revenues, right, saying for how much of it is a part. We've already called out that for 1 month, we had 0.8% come in HARMAN in Q3. For Q4, we've said that the entire HARMAN revenues is a part of the guidance. We are not calling it out separately. You can make your assumptions.

Wishing you a very Happy New Year. I'm Uma Kannan from Deccan Herald. Srini, you spoke about discretionary spending. I just want to understand, given geopolitical uncertainties in the U.S., so are these uncertainties still affecting your clients' decision-making, first? And second, your sectors apart from energy, manufacturing and resources, all other sectors have performed well. And when does -- what is happening in this energy sector? And one more question. So this is regarding AI skills that you spoke about. So going forward, will there be any change in your recruitment? Like are you -- will you be looking at freshers with specialized AI skills? And what will be the package that you will be offering?

So when you say uncertainties, what specific?

Geopolitical uncertainties.

So Happy New year to you as well. First and foremost, I think geopolitics trade and tariff, I think, continues, right? And those are definitely uncertainties that continues to be there. And most of our clients, they are sensing and responding to the situation that's going on. Having said that, I think more or less, I think the clients and the markets, if you look at -- especially in the U.S., if you look at the kind of GDP growth that they had in 2025, which is 3.2%. And if you look at the stock market, I think they've steadied and some -- in some -- most of the cases, they have actually performed better. So that obviously reflects on the sentiments of the sectors that we work on and the clients that are part of that. So I wouldn't see geopolitics to be a big situation at this point in time.

But the discretionary spend that I was talking to you about has definitely some of the correlation to that. Second, the technology disruption that's happening, the second point of your question on AI. So if you want to spend more on the technology, right, you also need to take cost out somewhere else. I think that's a balancing thing that our clients are trying to do. The more cost they can take out, the more they can actually invest into discretionary spend, especially specific AI projects. Yes. I think on the AI skills, you want to talk, Saurabh?

Yes. So from a recruitment standpoint, especially on campuses, what we have done is we have created this Center of Excellence, 50 of them across different universities where we actually work with the university and build a curriculum in a specific area, could be on AI, cybersecurity, data and then and then work with them and then hire people from there. I think that's the approach which we are taking. Premiums are paid to people who are with some experience, with client experience in that area. So that's how we are progressing on the AI skills. And then there's a lot of work happening in-house to upskill our existing talent in terms of certifications. So we are looking at different levels of certifications and making sure that people are -- the workforce is equipped with the changing environment.

And if I were to give you a broader commentary about what's happening with the workforce of the future, right? There's a huge transformational need that's required for the current workforce that's there in the -- specifically in the IT industry because you're going to be AI plus human kind of a situation. And there are new roles being created by AI. So the educational systems need to start evolving because you need the talent that comes out of this education to be AI-ready, AI-first approach. So I think the universities need to train that. I think we are giving our own inputs, like Saurabh said, in terms of what kind of skill sets that you need to be in the new world that's coming up.

Avik, you can go next.

Happy New Year to all 3 of you. First question to Srini. Can you talk a little more about the macro because the anticipation was that the second half of the fiscal will be better. So when you bake about 0% to 2% in guidance, which is much better than what you previously had guided. So what are some of the verticals that you actually expect for you to fire considering that energy and consumer has been a bit down? Do you expect those 2 segments to sort of rebound? Or do you expect your -- the tech and BFSI actually to fire? So that's a couple of questions. Aparna, margins have been pretty steady, but how confident are you in terms of maintaining that margins? And if I'm not mistaken, you told me back in July that large deals do take a time to ramp up, and that also creates some pressure on the margin.

So have those large deals actually started ramping up? Have you seen the positive impacts there? And Saurabh, I'll get back to you, they're very old questions. So just bear with me, any updates on the hikes? What are your hiring plans going into the next fiscal? And have you seen any of your employees facing visa renewal delays or problems in terms of renewals where they have to stay back in the India and were unable to actually get back to the U.S.

Thank you, and Happy New Year again to you. So just to give you a context, when you talk about macro environment, if you look at, right, I think I'm sure being a journalist, I'm sure you're watching what's happening in the U.S., what's happening in Europe and Asia Pacific markets. But from a Wipro perspective, and if I were to look at what happened in quarter 3, right, 4 out of the 5 sectors actually grew. If you look at BFSI, and typically, quarter 3 is a slow quarter for the banking and financial services, we grew 2.7% sequentially, and this is across all the markets.

So that tells you that there are opportunities that are coming in from a banking and financial services segment. And if you look at healthcare, tech and telecom, right, those industries are definitely looking at reimagining with AI. And I would think because healthcare, especially in the U.S., if you look at it, they want to actually use -- leverage AI for how they manage the members, claims processing and so on and so forth. If you look at life sciences clients for us, they are looking at how to leverage AI for drug discovery, molecular research and so on and so forth. So from that perspective, healthcare is up and running and very focused on transforming their way of doing business, right?

Consumer actually goes back to Mona's point, consumer manufacturing gets a little bit impacted with trade and tariffs. And I think uncertainties there continues. And we see that in the aspect of that. The point you asked is energy and manufacturing. Between energy and manufacturing for us, I think manufacturing, we did have a little bit of a slowdown. Now shifting gears to quarter 4, this is this quarter. And like I said, we have a very strong pipeline. And this pipeline, again, is secular across the 5 sectors that I talked about and across the 4 markets. I think our focus has to be execution now, win those deals and quickly ramp them up.

Yes. Avik, to your question around margins, yes, our performance has been quite consistent, and we've continued to expand our margins. We expanded by 40 basis points during the quarter, 10 basis points year-on-year. If you look at it, we've also stated that this is amongst our best in the last few quarters. And full credit to the entire team, which has rallied around making sure that operationally, we are having that rigor in terms of cost takeout and full credit to the team, and we'll need to continue to do that because we've managed this margin improvement despite a weak revenue environment, despite some of the large deals that we've picked up and pricing pressures in some of the vendor consolidation deals.

But this environment is going to be like that. So it's like we have to be on a treadmill all the time. As we look ahead, we have 2 incremental months of HARMAN DTS and that comes as a share of dilution. So we will work harder. And our endeavor, like I said, would be to be in the same band that we have done. And let's -- that will be the endeavor, and I'm hoping we continue to deliver. One of the large deals that we had signed in Q4 of last year, which was Phoenix, we have gone live and is fully reflected. It has ramped up to plan and that's fully in. Some of the discounts and some of the productivity that we had to share with our clients, they're all fully in. But as we go through the process, like I said, it's a continuous journey. We'll have to keep working on it. But this margin achievement is despite all that.

Yes. You're asking 3 questions. So the first one on salary hikes, there's a lot of questions internally also get asked to me. But we are in the process of deciding, and I think Srini is back and he's traveling to Davos. Once he's back, we'll have a discussion around leadership and take a call. I think we'll communicate as soon as we decide. On the second, on the immigration in U.S., I think it's more scrutiny. We haven't -- touch wood, haven't seen any challenge otherwise. We are making sure that people are going well prepared. So that's been smooth so far. And the third on recruitment, this quarter, our recruitment from campuses was muted. We had only about 400-odd fresh NGAs. But this was a quarter which we wanted to go slow. But next quarter, again, we'll be looking at ramping up to 2,000, 2,500 people from the campuses. So that's the plan. Otherwise, lateral hiring will continue, which is more project-based across the globe and skill-based. So that's how it'll continue.

What was the status of visa renewals. H-1B visa renewals. No employee was impacted.

Not yet. We will see now once the new thing comes up in March.

Okay. And are you applying for new H-1B in the new season?

We are debating that. We'll come to take a call on that.

I'll just take one online question before we come back here. This is from Times of India. Saurabh, putting you on the spotlight. Just is the headcount addition mostly due to the HARMAN acquisition? And how are you rationalizing the workforce you inherit from there?

So the headcount has been -- for 2 reasons, we have seen an increase in our headcount. One obviously is the HARMAN acquisition. Second is Aparna alluded to that large deal, which we had signed, the Phoenix deal. There was a rebadging of employees. These 2 led to the larger count. Otherwise, it's been more of a flattish from that point of view. We will see an increase in headcount organically coming through in Q4 as we go on campuses to hire.

Sanjana, please go ahead.

A very Happy New Year to all of you. Revisiting the guidance bit, so it has been revised on either end to signal flat to positive growth. So apart from the contribution from the HARMAN DTS acquisition, are there any more factors driving this optimism? And Aparna, you also mentioned that this quarter has seen one of the best margin performances in the last few quarters. Could you expand on that? What is contributing to this? And also, is there any scope for discretionary spending to return, let's say, in FY '27, if you could touch upon that? And is there any impact from the labor code implementation on an annual basis? And the last question, some of your peers have reported large and even mega deals from public sectors across geographies. So is this an area of interest, something that you're looking at closely? That's it.

Oh my God, there's a lot of questions, Sanjana, Happy New Year. So on margins, and I'll take that question, saying that the walk for the margins, right? Like I think we have seen a sustained improvement. If you look at our SMU performance and if you look slice and dice, everybody has pitched in, in order to improve the operating margins. If you look at it, we have looked at levers like sustaining the higher utilization that we've had. We've also gone ahead and improved our fixed price programs in terms of profitability. We have optimized on our SG&A. That's something that we've been doing. We have also had some of our earlier acquired entities as the synergies are getting realized, the margins are improving.

Those are some of the positives that we've been driving. And the other big aid that came is the ForEx, the rupee depreciated and that has also added, right? And these are some of the positives, and these are some of the things that have helped us in terms of our margin performance. In terms of the labor code impact, is there any continuing impact of the labor code? Absolutely none. And if you actually notice, our labor code impact is perhaps amongst the least compared to the rest of the industry, that's because we've been gradually and consistently we've been trying to come closer to the labor code. So we were quite well prepared, and we have taken what we had to. I don't anticipate any continuing impact of it on our financials.

Public sector deals.

No public sector deals. I think that was a question for -- Sanjana for Aparna, right? Okay. You want me to answer that. So first and foremost, Sanjana, when we talked about our strategic -- 5 strategic priorities, we said clearly, we want to focus on certain markets and certain industries, which are both. So that way, we are staying very focused on executing to our 5 strategic priorities. So if there is anything, there's a different -- if you want to add a new sector or a new market, I think it will depend upon the right to win and the scale and scope and so on and so forth. So at this point in time, we'll stay focused on the 5 sectors that we called out and the 4 markets we called out.

Just one clarification from , and I'll come to you, Paulomi. This is for Aparna, does the guidance include inorganic as well? Or is it only organic?

Yes, it includes inorganic as well.

Perfect. Paulomi, would you like to go next?

So my first question is, are we seeing an impact on pricing as deal structures evolve as it's becoming more AI focused. So is that -- can that be accounted for within the fall in deal value that we're seeing? And also, I mean, recently, there have been reports of other IT companies hiring like specialized freshers who are specialized in AI skills and they paid considerably more. So like how are you looking at the pay scale mix for them?

So from a pricing standpoint, the environment continues to be like we've spoken about how cost optimization and vendor consolidation are the 2 big themes that dominate our pipeline. And some of these deals are quite intensely contested. But that's been the order of the day for some quarters now, and we've been doing well on it. And like you said, is there like an impact of AI that's leading to compression of deal bookings? Not at all. Like I said, some of these deal bookings are quite lumpy. Some quarters tend to be even better compared to the others. You should look at the year-to-date performance, which has been growing north of 20% year-on-year in our total contract value bookings and even -- and led by our large deals, which have grown north of 50%. So that's considerable growth. So I wouldn't call AI compressionary at all. And it's, in fact, leading to more deals and more decisions.

Do you want to add something? Okay. So go ahead. Go ahead, Saurabh. It's your question.

No, no. Please go ahead. Please go ahead.

I Insist.

I spoke about it earlier on differential compensation. At least for now, we are investing upstream in our campus relationships to make sure that we get people of the right profile we want and make them deployed better. Premiums will come as they get more experience because a lot of clients are expecting. So when we go laterally or we see that they have developed well, we will make sure that they are fast tracked. So that's how we are taking that forward.

Shall we take the last question. Padmini, go.

So I know you said you're not looking into any other brackets when it comes to sectors, but some of your peers said that discretionary -- they're not looking at discretionary spending anymore. They're more looking for different sectors like data centers and physical AI. So are these sectors even -- are they under your radar? And second, also one of your peers called out that they're losing small market share for GCCs. So is that something you're seeing also?

So good questions. First and foremost, on the GCCs, I think our strategy is to actually partner with the GCCs and also help build the GCCs for our clients. So that strategy continues. I think we -- the advantage that the clients have working with us is that we can power their GCCs with our Wipro Intelligence. And I think that's a benefit that they get because the delivery platforms and the industry platforms that we have, we can actually bring it to the doorstep. So from that -- so that would continue. What was the first question?

I think she had asked a question around GCC, right? Discretionary spends.

Any other sector like...

Okay. So when I say sectors, they are industry sectors, right, the 5 sectors that I talked about. So from a data center, I wouldn't call it -- from our terminology, it's not a sector. It's a horizontal opportunity that we have. And of course, yes, because data centers is a big investment that's going on. If you actually look at -- take a step back, every day, there's a $1 billion capital spend on infrastructure for AI, right? It could be data centers, GPUs and so on and so forth. And by 2030, it's going to be $3 billion per day. So it's going to be $1 trillion investments. I think the space that we are looking at is how do we help build AI data centers for our clients, sovereign data centers. It's more about the services and the software component of it, not so much on the hardware aspect of it. I think that's where we're going to focus on, and we continue to work with them. And the interesting part is soon there will be data centers in space. We got to think about that, too.

Just one question -- one clarification from Times of India, and then we'll come back to you. Saurabh, is there any change in the bench policy with the changing market dynamic?

None.

Wonderful. Go ahead, Shristi.

I just have a quick question. So some of your larger and smaller peers are getting more acquisitive as they go forward. So do you also have such plans in this year? And what kind of geographies or capabilities would you be looking at?

Our acquisition strategy is based on our own 5 strategic priorities, not what others do, right? That's one. Second, we just did HARMAN DTS, right? We're just integrating on that. What we look at is what are the opportunities that are there, both on the sector side and the market side, and we will continue to look at those opportunities. And for us, growth includes both organic and inorganic, and it has to fit into our broader strategy that we called out. And we'll stay focused, and we are definitely in for it.

We'll take one last question.

Just one question. It's about Americas 2 market. I mean, like it has come down compared to last quarter. So what are the reasons? And will this -- will growth continue back in the next quarter?

So you want to talk about it?

So Americas 2 typically has sectors that are impacted by furloughs. So this quarter 3 is a seasonally weak quarter, and therefore, it's impacted by furloughs. Other than that, you would have noted that our EMR performance has been quite soft, which is also part of the Americas 2 market. And therefore, we -- it's also because of some of the earlier programs that have concluded and the newer ones, we need to win more, right? So that is also playing into the Americas 2 performance.

As we look forward to the performance in Americas, 2, you'll have to note that we've won a lot of good deals in the first half, and we are hopeful that they will continue to pick up. These deals typically take longer to ramp up given the nature of the wins, but we are very, very confident that they will start picking up and then the growth will come in. So it's a little bit of a mixed bag. We've won the deals. We have to wait for some of these deals to ramp up. EMR softness is paying and there's furloughs that should hopefully bounce back.

One just clarification. You said that 400 freshers have been recruited, right, in Q3. So how many freshers have been recruited so far in this fiscal?

About 5,000 plus.

Okay. Okay. So by the end of this fiscal, how many...

We will -- we had said 10,000. I think we'll end up between 7,500 to 8,000.

Thank you. We will have to conclude our Q3 FY '26 earnings press conference. For all follow-up questions, please reach out to Media Relations team, and we'll be happy to help you. Thank you, and we'll see you next quarter.

Ladies and gentlemen, good day, and welcome to Wipro Limited Q2 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Abhishek Jain, Vice President, Corporate Treasurer and Head of Investor Relations. Thank you, and over to you.

Yes. Thank you, Yashashri. Warm welcome to our Q2 FY '26 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 financial overview by our CFO, Aparna Iyer. We also have CHRO, Saurabh Govil; and our Chief Strategist and Technology Officer, Hari Shetty, on this call. Afterwards, the operator will open the bridge for Q&A with our management team.

Before Srini 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 expectations and are associated with uncertainties and risks, 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. 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 Srini. Srini, over to you.

Thanks, Abhishek. Good evening, and thank you all for joining us today. In quarter 2, 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 movements for this quarter.

Within our markets, 3 of the 4 SMUs reported sequential growth. Americas 1 delivered sequential and year-on-year growth, driven by strong performance in healthcare, technology, and communications sectors. Americas 2 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. Europe returned to sequential growth in quarter 2 after several quarters led by BFSI. The Phoenix deal is set to start generating revenue from quarter 3, 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.

Coming to deal wins and pipeline. 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 2 mega deals, one 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 are seeing strong momentum in Europe, and I want to highlight two examples that bring this to life.

First, Wipro has formed a strategic multiyear partnership with a leading U.K. financial company to modernize their business. We are using our WeGA AI platform and a new center of excellence to drive this change. 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 clients. 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 multiyear 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. 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. And 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 payer AI for healthcare. Each of them is already making a tangible difference for our clients and also earned 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 Aparna, who will take you through the financials in more detail. Over to you, Aparna.

Thank you, Srini. 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 quarter 1 margins was at 17.3%. 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 shared will be in constant currency. Americas 1 sustained its growth momentum, growing 0.5% sequentially and grew 5% on a year-on-year basis. Americas 2 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. 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, were at -- was at $6 billion for the quarter. In quarter 2, our net income -- 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 quarter 2 '26. versus 24.6% in the same quarter in the last year. In terms of guidance, to reiterate what Srini 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 minus 0.5% to a plus 1.5% in constant currency terms. 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.

[Operator Instructions] We'll take our first question from the line of Nitin Padmanabhan from Investec.

So the first is just wanted your thoughts on the deal to revenue conversion. So I think we have had very strong deal wins, large consolidation wins. Do you think BFSI, considering you had those large consolidation wins should start flowing through this year itself? -- those that you closed last quarter? And how should we think about -- how are you thinking about growth as you sort of go forward and next year? Do you think this alone can sort of continue to sort of help maintain a positive momentum on revenue?

So 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 6 to 8 quarters to fully ramp up on the new. In terms of the large deal win that we had in the BFSI space in Q2, we -- it's largely renewal, right? So 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. And if you look at, like I said, the one that we did in Q2 is largely renewal.

Now 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 are quite confident. Q3 looks positive. And 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.

Got it. Got it. Just one last one on margins. I sort of missed the margin walk that you sort of provided. But how should we broadly think about margins going forward? Do 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? Just some color on margins, how should we think about it?

So when we started quarter 2, 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. In quarter 2, the walk, while we are 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.

So quarter 3 is also a seasonally weaker quarter in terms of furlough lower working days, et cetera. That's the headwind we are starting quarter 3 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 SG&A, we are continuing to optimize. These three levers will continue. And 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. So adjusted for that, our operating margin is 17.2%, which is in a narrow band of Q1 performance.

Next question is from the line of Kumar Rakesh from BNP Paribas.

My first question was around the growth side. So over the last couple of quarters, we have seen the deal wins to have materially. Total bookings have been touching close to about $5 billion. Your large deals also have been quite high. You also spoke about Phoenix deal will start ramping up in the third quarter. So all these momentums are something which is behind us and should be 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 December quarter, we had reported marginal growth. So the furlough shouldn't be so big that it eats into all the incremental tailwind which we have?

So Rakesh, when we guide, we guide based on the visibility that we have at the start of the quarter. We -- you should look at the midpoint and then we guide in a range that is both -- that's why we have 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. And as we convert more of these large deals into revenue, this momentum should improve.

My second question was around margins. 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 would be margin dilutive and there would be some impact of that. So how should we tie up these two comments?

Yes. So 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 intently fought, right? So 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? But 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 are driving several other initiatives still to offset some of these investments that we are making.

I also want you to note that the Harman DTS 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. And 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. And that's how -- that's why we are saying at least for quarter 3, we are holding it in a narrow band, and then we will see from there how we take those margins.

We'll take our next question from the line of Ravi Menon from Macquarie.

You are now growing year-on-year on an organic basis in line with the peers. So do you think this can sustain or it can even improve from here?

Ravi, can you repeat your question?

I was saying that now you're growing year-on-year 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?

Yes. Srini, you want to take it?

So Ravi, Srini here. As far as we are concerned, at this point in time, we're given a quarter 3 guidance like Aparna talked about, the midpoint is positive. Second point is some of the deals that we have won on the first half, some of them we'll have to start executing and each of them have their own rhythm in terms of the ramp -- 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 into bookings, which will again translate to revenues going into the future. So from that perspective, Ravi, the main focus for us is to execute both in terms of the deal wins and also win the deals.

And going into Q3, other than seasonality, are there any specific factors that you think are headwinds to revenue?

No, not really.

We will take our next question from the line of Sudheer Guntupalli from Kotak Mahindra AMC.

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

So Sudheer, as far as quarter 2 deal wins are concerned, the two mega deals that I talked about, one is in the health care sector, other one is in the BFSI sector. Sudheer, I hope that clarifies.

Yes, Srini, that's fine. So I was asking Aparna's response to a prior question that it is largely a renewal. So you were referring specifically to the BFSI deal, right? Not -- you are not characterizing the overall deal wins that you had this quarter. So 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. So I wanted to understand what is the mix of renewal and new within the overall space, not specific to that particular deal?

Yes. Sure. Sudheer, 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 an opportunities to bring in growth. Second are renewals with extension of the pipeline, wherein the extensions like Aparna talked about, will take its time in the next 6 to 8 months. And the third piece is net new deals that we have, which we will execute immediately. And the two deals that I called out in Europe are the net new deals, Sudheer.

Next question is from the line of Sandeep Shah from Equirus Securities.

My question has been answered.

Yashashri, you have to move to the next participant.

The next question is from the line of Dipesh Mehta from Emkay Global.

Two questions. First, I 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. 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 give some sir. Second question is whether we are witnessing any delay in this deal ramp-up? What we have signed in last 6 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. 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? And last question is about the vertical. If I look, let's say, even quarter 2, the way we report our vertical mix, 3 out of 5 is still showing sequential decline. So 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?

Yes. So I'll take a few questions and then Srini, you can also add in. From a net new standpoint, we had -- in our large 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 2, 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'm not -- I don't think there is any delay in the ramp-up. They're pretty much right now on course to ramp up as planned. So there is no delay or deferral or challenges that we are facing on that.

In terms of the Europe, whether that client-specific issue is behind us, yes, 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 2 to 3 quarters, even into the next few. As you know, we continue to operate in a very competitive environment, which means that 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.

So 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. And these are the two sectors which have degrown sequentially as well as on a year-on-year basis. Now 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, I think, Dipesh, we're looking good.

We'll take our next question from the line of Girish Pai from BOB Capital Markets.

I had a few questions. Just on the renewal deal side, are the clients asking for greater level of savings now compared to the past when such renewals happened, considering that you are using AI? And 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?

So Girish, if you look at broader industry trend that we are seeing, Girish, is 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 are concerned, clearly, the clients are looking at 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 the opportunities are, of course, on the run and operate side, which includes your application support and maintenance, infrastructure and business process services, where we infuse AI, helping the clients bring in efficiency, productivity, velocity. The second part is build and transform, which is our software development life cycle, product development life cycle, package implementation. Here, there are multiple tools that are available, and we are using our Wipro Intelligence WeGA platform to actually bring in those productivity benefits for our clients.

And as far as run and operate, we are using WINGS as a platform to bring the productivity and efficiency. Now wherever the clients are able to get this efficiency and productivity, they're actually investing in new -- especially around the business innovation, leveraging AI and the aspects of AI advisory, data architecture, and also the platforms -- some of the platforms that we have built and also solutions, the industry-specific platforms and solutions that we have built is also creating a positive impact for us with the clients. just to name AutoCortex in automotive, payer AI in healthcare, WealthAI, and BFSI. In fact, some of these, we have already started implementing for the clients and clients are seeing the benefit. We also have some of the industry analysts talking about these industry-specific AI solutions as well, Girish. So it's a combination of all this that we see as an opportunity for us.

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

Girish, this is Hari Shetty here. And again, glad to be on the call today. A couple of key things, and I think you bring up a very valid point in terms of your question. And one of our strengths in terms of our Wipro Intelligence platform is the responsible AI guardrails that we have actually built into the platform. And 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. And these capabilities go into both of the platforms that Srini talked about, whether it is WeGA or WINGS. 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. Obviously, some of this will also translate into contractual commitments on both sides. And again, from a risk management perspective, we take care of those controls as well.

Okay. Just last question on H1B. I know probably it's been beaten into that. Do you foresee any higher pressures on subcontractor costs or on-site utilization going down because you need to maintain 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. So how do you kind of foresee that?

Girish, Saurabh here. As you know, a large part of our workforce in the U.S. is localized. So first of all, we don't see a supply issue from an H1B perspective. More than 80% people are localized, and we are looking at 250-odd H1Bs in the past 4, 5 years. So we have been progressively reducing our dependence on H1Bs. So either on subcontractors or on 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.

We'll take our next question from the line of Vibhor Singhal from Nuvama.

Congrats on continuous solid deal wins. Srini, my question was regarding the BFSI segment. You mentioned that amongst the five verticals, manufacturing and retail will continue to probably face challenges. But in the BFSI vertical, we have a very interesting mix in which Capco continues to do well. We have the Phoenix deal ramp up maybe next quarter. But at the same time, we were facing challenges in the European BFSI. So putting all this together, how do you see the BFSI sector playing out for us over the next, let's say, 2 to 3 quarters?

Sure, Vibhor. Maybe I will answer this in a...

I'm sorry, sir.

Yes, sorry. Sorry, Vibhor. Maybe I'll answer this question in a little bit more detail, if that's okay with you. 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 quarter 1. That's number one. Second is the growth for us in BFSI, like I said, is -- was led by Europe and APMEA. And 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. And the same -- the point I made to Girish and Dipesh in terms of the kind of deals that we have, the clients are obviously rebalancing. And also in the BFSI sector, the clients are modernizing a lot of their core in addition to vendor consolidation and efficiencies provided through AI.

And also if you look at Capco, Vibhor, we saw Capco demonstrating both sequential and year-on-year growth for us, which Aparna talked about. So now if you look at from a -- specifically, if I have to double-click on BFSI, banking and payments continues to be our large domains. Also the capital markets, right, some of our global top accounts and anchor accounts, they are showing positive growth. And the most important is, I talked about the platforms, industry platforms, the wealth and asset management is really getting a traction for us. We are also in this segment has a lot of conversations around how we can advise our clients on the AI side. That's something that we are helping the customers.

Right. So a lot of, I would say, I mean, traction that we are seeing in multiple parts. Capco, as you said, right, should produce. So overall, as the outlook for the sector, we are looking at a good decent one in the next coming quarters as well. Would that be [indiscernible] say?

Yes, Vibhor, if you look at my pipeline, right, obviously, BFSI's pipeline is very strong. So 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. So net-net, I agree with the point you made, Vibhor, BFSI continue -- we see in the positive light.

Perfect. Perfect. That's great to hear. Just to double click on the same manner on the healthcare sector. I know not as large as BFSI, but a lot of our peers have been talking about challenges in the healthcare sector because of the Big Beautiful Bill that was introduced by the Trump administration. So any color on that? How do we see this vertical playing out over the next 2 to 3 quarters?

Yes. So Vibhor, if you look at traditionally, healthcare has been a strong sector for us. And even in the last quarter, we did show a year-on-year growth. But you're right, there are certain headwinds in this sector because the sector is going through structural changes. So 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. And I think that will drive more cost takeouts, more modernization and so on and so forth for our clients.

Second, 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. And that's another thing that we see as a traction for us. And also a couple of areas like some of the -- 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, right, in the context of the structural change. So all these are opportunities for us. And I think we continue to be strategic technology partners for some of the Tier 1 healthcare payers. And I think we continue to stay focused on that.

Got it. 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, 2 to 3 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?

So if I look at the -- if you look at the key people indices in this quarter, net headcount has gone up, onboarded freshers from college, attrition has come, utilization has gone up. And based on the demand, which is a high, a very strong bookings in H1, I think depending on the -- as we convert to revenue, we'll continue to hire both laterally as well as from campus.

Next question is from the line of Abhishek Kumar from JM Financial.

I have two questions. First on -- so we talked about three kind of deal wins, right, 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 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?

So 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? Like I said, every deal, every time there is a productivity renewal, there is a productivity that gets passed on. And we typically tend to take on more new projects, more new spend that the client initiates. 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. So 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 a standard productivity that gets passed on. It's very typical to what we've seen in renewal deals over the last few years.

Okay. Just a follow-up on this one and then I have a second one. I was asking this because Q2, there have been renewal deals. And even if there is new scope, I mean, would you agree that there is a timing difference between the new scope increase versus the deflation that we see near term? So does that mean that, that hits you in second half?

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

Okay. My second question is on the impact of the bankruptcy on your top line. Did we see any impact on 2Q revenue or we are expected to see anything in the 3Q revenue?

No, nothing. No, there was no impact on the revenues. We've actually made a provision for bad and doubtful debt. You will see that in our G&A spend of expected credit loss numbers going up, and we have made a disclosure to that effect as well. This has no impact on the revenue growth in Q2.

We'll take our next question from the line of Nitin Padmanabhan from Investec.

Earlier, you had called out some large SAP implementation projects being pushed out, pauses 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.

So Nitin, specific to the comment you made in the context of what we said, there was -- in 1 quarter, we had -- 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 would -- they may not want to start the program. Having said that, we have got good traction, especially for SAP HANA across industries, Nitin.

Got it. The second is within the EMR vertical. So 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're thinking about EMR on a going-forward basis?

You're right, Nitin, EMR sector for us has degrown sequentially as well as year-on-year, especially the manufacturing in auto and 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're hopeful to come back to the market. And these deals will be very, very competitive. So we will -- 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. But broadly, Nitin, again, the point I made is that we do see the opportunities in SAP S/4HANA space in some of our clients. And 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. So we are looking at that aspect as well.

And many of these clients in the context of what's coming at them, they are also driving cost optimization and vendor consolidation. So we continue to stay focused on that. And there could be -- there are certain deals we are also seeing on the post-merger integration space. So 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 U.K. sector, we hope that sector would turn around. So broadly, there are multiple dimensions and aspects for energy and manufacturing. But net-net, Nitin, very valid. Your question is very valid.

So 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? And do you -- how do you see furloughs this year currently when you just think about it versus last year? As far as the...

Yes. Nitin, as far as the deal 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. And this is -- 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 consistency across sectors and geos, so our pipeline is a lot more secular. But broad theme, Nitin is cost, of course, speed and AI-led efficiency as opportunities that keep coming towards.

And there are -- 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. And also we are trying to convert that into our qualified pipeline initiatives as well. Then of course, there will be small vendor consolidation deals as and when it comes up, we'll stay focused. The fact that we have won four 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.

And on the furloughs, yes.

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.

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.

Yes. Thanks, Yashashri. 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.

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

Welcome, everyone, to our Kodathi campus. For those of us who are joining virtually, good morning, good afternoon, good evening. We will begin the press conference for Wipro's second quarter earnings. My name is Nisha Chandrasekaran. I'm part of the external communications team, and I will be your moderator for today. Joining me on stage is our Chief Financial Officer, Aparna Iyer; our Chief Executive Officer and Managing Director, Srini Pallia; and our Chief Human Resources Officer, Saurabh Govil. We will begin with opening remarks from our CEO, followed by a financial review from our CFO. Post that, we'll open the floor for your questions.

With that, let me hand over to our CEO and Managing Director, Srini Pallia.

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

In quarter 2, our IT services revenue stood at $2.6 billion with a sequential growth of 0.3% in constant currency. Our adjusted operating margin for this 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 movements from this quarter. Within our markets, 3 of the 4 SMUs reported sequential growth. Americas 1 delivered sequential and year-on-year growth, driven by strong performance in health care, technology and communications sectors. While Americas 2 saw a decline this quarter, we remain confident about the future growth in this region as some of the deals we have won in the first half are now beginning to ramp up.

Europe. Europe returned to sequential growth in quarter 2 after several quarters led by BFSI. In fact, the Phoenix deal is set to start generating revenue from quarter 3, providing further momentum to Europe. 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, including Lat Am and APMEA.

Turning to our industry sectors now. We continue to see momentum in BFSI with our clients prioritizing on cost optimization, vendor consolidation, legacy modernization and of course, scale deployment of agentic AI. Tariff uncertainties continue to impact consumer, energy and manufacturing sectors, leading our customers to reevaluate their supply chains. In technology and communications, the focus is on accelerating AI adoption and also developing industry-specific solutions with cost optimization remaining central to them. Health care, in fact, especially in the U.S., is undergoing structural changes, and we are actively supporting clients through this transition. Of course, this sector remains one of our strong performers.

Coming to deal wins and pipeline. 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 books this quarter includes 2 mega deals, 1 with a health care client and another in BFSI. While a significant portion of these 2 deals are renewals, they are very important for deepening our presence and unlocking future growth in these accounts.

We are also seeing strong momentum in Europe, and I want to highlight 2 examples that bring this to life. First, Wipro has formed a strategic multiyear partnership with a leading U.K. financial company to modernize their business. We are using our WeGA AI platform and building a new center of excellence to drive this change for the bank, helping them improve customer experience, streamlining their back-office operations and in addition, bringing in advanced AI to both their business and technology streams. To give you examples, HR, mortgages, financial crime prevention and of course, IT. This will optimize workflows and support real-time decisions for them. Above all, it will help our client become more resilient for the future.

In my second example, in Europe, we are partnering with a leading distribution and logistic company on a multiyear 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, which is our unified suite of AI-powered platforms and solutions and transformative offerings. With Wipro Intelligence, we will be enabling our clients scale with confidence and lead in an AI-first world. It strengthens our consulting-led approach, driving innovation and delivering measurable outcomes for our clients.

In fact, Wipro Intelligence brings together advanced capabilities across both delivery and industry platforms. In fact, our delivery platforms are already accelerating work from software development, cloud and infrastructure to business process operations. And 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 every day, we are helping clients experiment, adapt and scale rapidly by working closely with our partners, ventures and a few leading research institutions.

Wipro Intelligence is about proof, not just promise. So we embed productivity gains, assure business outcomes and build responsible AI guardrails for our clients. Let me share 3 examples of these solutions: one, AutoCortex for automotive; WealthAI for BFSI; and PayerAI for health care. Each is already making a tangible difference for our clients where we have implemented these solutions, and this has earned 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. Let me reiterate, our priority remains converting our strong backlog into revenue while maintaining operational discipline to ensure profitable growth.

And with that, I'll hand over to Aparna, who will take you through the financials in more detail. Over to you, Aparna.

Good evening, everyone. Thank you, Srini. Let me share an update on the financial performance of the quarter ended 30th September 2025 before we start the Q&A session. Our IT services revenue for Q2 grew 0.3% sequentially in constant currency terms and 0.7% sequentially in reported currency. These numbers are well within our guided range. Revenues declined 2.6% year-on-year in constant currency terms. Our operating margins in Q2 was at 16.7%. This is a contraction of 60 basis points quarter-on-quarter and 10 basis points year-on-year.

Our operating margin was impacted by a one-off charge taken on account of a customer bankruptcy event. Adjusted for this event, our margins were at 17.2%, an expansion of 40 basis points year-on-year. This is also within the narrow band that we had called out in our last earnings. As we invest for growth, we do see pressure to be there on our operating margins, but our endeavor would be to maintain it in this narrow band of an adjusted 17.2%.

Let me give you some color on our strategic market unit and sector performance. All the growth numbers that I will share will be in constant currency. Americas 1 grew 0.5% sequentially and 5% on a year-on-year basis. Americas 2 declined 2% sequentially and declined 5.2% on a year-on-year basis. Europe grew sequentially 1.4% and declined 10% on a year-on-year basis. APMEA grew 3% sequentially and grew 2.6% on a year-on-year basis.

Moving on to the sector performance. BFSI grew 2% -- 2.2% sequentially and declined 4% year-on-year. Health care declined 0.2% sequentially and grew 3.9% year-on-year. Consumer as a sector declined 1.7% sequentially and also declined 7.4% year-on-year. Technology and communication grew 0.8% sequentially and declined 1.7% on a year-on-year basis. EMR declined 1.5% sequentially and also declined 0.5% on a year-on-year basis. Capco continues to perform well, growing 3.2% on a year-on-year basis.

Let me share with you certain other key financial parameters. Our net income and EPS grew 1% year-on-year in Q2. Our operating cash flows continue to be higher than the net income and stood at 104% of the net income for Q2. Our gross cash including investments was at $6 billion. Our net income declined 14% year-on-year. Accounting yield for our average investments held in India was at 7.1%. Our ETR was at 23.8% for this quarter versus 24.6% in the same period last year.

In terms of guidance, to reiterate what Srini shared, we expect the revenues from our IT Services business segment to be in the range of $2.59 billion to $2.64 billion. This translates to a sequential guidance of minus 0.5% to a plus 1.5% in constant currency terms. The Harman Digital Transformation Solutions acquisition that we had earlier announced is expected to close during the quarter. However, our guidance numbers do not factor any revenues from this acquisition.

Thank you, and wish you all a happy Diwali in advance.

[Presentation]

Open the floor for your questions. [Operator Instructions] For journalists present in the room, please raise your hand and we'll pass the mic to you. [Operator Instructions] And please introduce yourself and your publication before you ask your question. Do you want to -- should we start with Rohit?

Congratulations on your results. This is Rohit from Businessworld. I wanted to get a perspective on what the demand environment is kind of looking like for you guys this quarter versus what it was in the past few quarters, if you can talk about tariff impacts a bit more. And what are your U.S. clients saying would be the impact for rest of FY '26?

Could you repeat that? U.S.?

U.S. clients.

U.S. clients.

What is the commentary from them? And what are the impact?

Okay. So I think -- thanks, Rohit. From a demand perspective, what I would say is if I look at our pipeline, in the last first half of this year, we closed close to $9.5 billion worth of TCV. With that booked already, we still have a robust pipeline. So that's very important because you've depleted so much through bookings, but do you have the pipeline? That's number one.

Second, if you look at the demand, there are 3 clear opportunities that we have. One is vendor consolidation and cost optimization for our clients. So that clearly continues. Second is the new demand that's picking up, which is on AI. Clients want to move away from proof of concepts to actually implementing AI and agentic AI across their business process and also workflows. That's the second one that we are looking at. Third, it's also creating -- AI is also creating new opportunities for us to be truly consulting-led in terms of AI advisory, data advisory and also the fact that a whole change management that AI actually drives the organization to make sure the organizations are reliable, secure, ethical and so on and so forth, having the right guardrails. I think those are the new opportunities that are generating. So demand continues to be strong.

As far as the U.S. clients are concerned, right, if you look at it, this is a quarter where most of our clients will go in for a budgeting process. So as we meet our clients in the next couple of months, we'll get to know. I think the clarity will come more in the month of January. But having said that, the 3 areas that I talked about is something which is in top of the mind for each of our customers. If you look at by industry, it could vary a little bit. The way I see it is consumer, energy and manufacturing, they are obviously looking at their supply chains. They're looking at the tariff and how things pan out. But they're also looking at what should be they doing in the context of AI to reduce their broader context of cost.

If you look at banking and financial services company, they want to modernize their core, so they can accelerate their implementation of AI. So that's the kind of the demand environment. That's how we see the U.S. clients thinking right now.

Ayanti, before we go to you, can I just ask one of the questions which we've got from online from Reuters? What is the outlook on pickup in discretionary spending? And are there any particular verticals where there is revival?

So good question. As far as the discretionary spend is concerned, I'm not seeing a dramatic uptick. But having said that, the spend is now moving more -- discretionary spend is moving more and more into AI, AI-related projects. But it's also important for the clients, right, as they're budgeting, to take the cost out. That's where I said a lot of demand we see in terms of vendor consolidation, cost optimization. But discretionary spend, we will get to have a better view in the month of Jan or in the month of December as they finalize their budgeting process.

And the second part was any particular verticals that you're seeing revivals.

So if you look at -- again, I can speak from the pipeline that we have as of today. Clearly, BFSI continues to have good demand from an industry perspective. We also see tech and communication companies investing, and we see the pipeline in that aspect. I would say health care, again, continues to be robust in terms of our pipeline, a little bit weakness in consumer, energy and manufacturing in the context of discretionary spend, but they -- continues to focus on cost optimization. Thank you, Srini. Ayanti, you can go next.

I'm Ayanti from Financial Express. I have 2 specific questions. First one to Srini. We are seeing divergent AI strategies from top IT firms in India. While one is going a [ capital-intensive ] path, there are others going for an asset-light model. What is Wipro's AI strategy with Wipro Intelligence in particular also, if you could?

Sorry, I didn't get your name.

Ayanti.

Ayanti. Are we -- first time you're here, Ayanti?

Second actually.

Second time. Okay. Because I was not familiar with Ayanti. So thanks for coming, Ayanti. So I think the reason why we launched Wipro Intelligence, right, and if you look at it, the way our strategy is based on what you have seen is one is there's going to be a lot of platform play. The platform play will be on our delivery and also on the industry platforms. For example, if you look at in delivery, the way we do run and operate, whether it's application support and maintenance, whether it's infrastructure or its business process outsourcing, we are going to use WINGS, which is our AI platform to have an end-to-end view of AI data and optimization.

If you look at WeGA, which is our platform for build and transformation programs, right, that's how we are trying to continue to build. Now going -- the way I see Wipro Intelligence impacting our clients is we have platforms which are within the guardrails for them to actually implement. And that's where the industry platform that I talked about, AutoCortex, PayerAI, bank -- WealthAI, those are the opportunities that are driving us.

On the second part is the clients are looking at co-innovating with us. And one of the large banks that we talked about in U.K., they are -- we are helping build a center of excellence so that we can infuse AI into their current operations. They can fast track their cost optimization, efficiency and the velocity with which they can serve their end customers. So Wipro Intelligence addresses all the needs of our clients industry by industry.

That sounds fair. My second question to Saurabh. You had mentioned last quarter that the company will approach hiring based on the demand, and now we are seeing a better demand outlook for H2 across the top IT firms. So what are the plans for hiring for the second half of the year, particularly in terms of campus recruitment? And also, are there any updates on wage hikes for this year?

So if you look at our numbers, we went for campus hiring. We onboarded about 2,900 freshers in this quarter. This is in spite of a lower attrition from the previous quarter, a better utilization from a people supply chain standpoint. And we will continue to hire based on demand. We will continue to look at campuses. Q3, the number of days of working with are less, but otherwise, depending on demand, and we have -- you've seen in the first half, bookings have been very robust. And as Srini called out, intent is to convert these bookings into revenue. So we will look at the need demand base, and we will continue to honor program for campuses as well. So we will -- whatever commitments we have made, we'll do. Our overall headcount has gone up for the quarter. So that's a positive.

Sorry? Wage hikes, the macro environment continues to be uncertain. We haven't taken a call yet. As soon as we take a call, we will let everybody know. But we haven't decided when the wage hikes will as of now.

[ Srishti ], would you like to go next?

I'm [ Srishti ] from Economic Times.

So I have a quick question on your deal bookings. So the total contract value this quarter sequentially saw a decrease. So is this an indication of the deal pricing cut that we're seeing across the board in the sector?

Sorry, are you asking whether the reduction in bookings is owing to competitive pricing?

Yes, yes.

No, that's not the case. So our bookings are quite robust. They've grown tremendously on a year-on-year basis. This is one of our largest bookings quarter. So nothing was -- there was no impact of any pricing pressure on that.

And the point is that in quarter 1, we had a significant bookings with 2 mega deals. We also have 2 mega deals this quarter, but it's more on the renewal side. But having said that, I agree with what Aparna said. It's nothing to do with that aspect of pricing.

Right. So the second question I have is with the Europe quarter. So I mean, across the board, even with Wipro, you're seeing a steady growth with the Europe segment as such. So I wanted to see what outlook you have in sort of a growth momentum in that particular...

So I can speak for last quarter. Like I said, one of the things I came back -- I used to constantly tell every quarter is that Europe has been declining. And I said that we have the robust pipeline, and we need to convert that pipeline and convert that into revenue. I think it started with quarter 2, where we convert -- where we got our execution right, and we started showing the growth.

As quarter 3 comes in, the Phoenix deal will start ramping up as well. And the pipeline in Europe is strong. And if we convert some of those pipelines into bookings, I think we should see a positive momentum going forward as well.

[ Jyoti ], please.

I'm [ Jyoti ] from BusinessLine. So Wipro had always had fewer H-1B visas as compared to its peers. So will this help you wean off the program easily?

So on H-1B, if you look at it over a period of time, it's not now, but over the last few years, we have very focused and purposeful approach on how can we localize. So today, nearly 80% of our U.S. employee base are locals. And we believe that with the change in the H-1B program from a business impact will be very limited. We have enough and more avenues to manage the change.

So how will H2 look for you? Will it be better than H1, taking into account the furloughs and the wage hikes?

This is on what context in terms of...

The H2 visas.

Results.

H2 results.

H2 results.

Okay. So visa and wage hikes.

Okay. So based on?

Visa...

Okay. H-1B has no impact on us because we are not dependent on H-1B visas like Saurabh talked about. As far as we are concerned, it's not -- there's no direct correlation with the wages aspect in terms of H2. Like I said, quarter 3, we had a positive growth. And as far as quarter 4 is concerned, we see the momentum based on what we saw in quarter 3. So I would leave it there.

Can I ask?

Yes, please.

I'm [ Narendra ] from United News of India. Sir, I have 3 questions. I believe that it's very much salty questions, the way I put it. The net profit fell 3% despite revenue growth and higher EBITDA. Does this signal operational inefficiency or deeper cost issues?

And my second question is large deals grew 90.5% year-on-year, but overall bookings are just $4.7 billion. Is Wipro overly dependent on a few big deals and what if they don't convert?

And my last question, margins improved only slightly to 16.2%. Can Wipro sustain profitability amid the rising competition and client cost pressures? Or is this a plateau?

Thanks, [ Naren ]. I like salt and sour, too, so it's okay. Okay. So coming to -- maybe I'll ask Aparna to answer your question #1 and 3. I will just take a shot at 2 in terms of the large deals.

First and foremost, I'm happy that we booked $9.5 billion. I'm also happy that we had 4 mega deals. Having said that, this quarter, those 2 mega deals are significant renewals. So what that means is that you're going to sustain the client relationship, and that's also an opportunity for you to naturally organically grow into those clients.

Second, if you look at this quarter, the number of large deals were 13. Outside of that, it's all onesies and twosies as well. So I just wanted to give you that math as well. It's not that we are totally dependent only on large deals. It's about account mining. It's about onesies and twosies. It's all about delivery-driven growth and of course, large deals. That's our icing on the cake. I'm not complaining. Profit?

Yes. So you had a question on the total profit. If you look at our net income, there is a growth of 1.2% on a year-on-year basis. On a quarter-on-quarter basis, there are certain moving parts. Obviously, in terms of our other income and our tax, we have certain -- in tax, we had a much lower ETR last quarter, which has now been normalized. So it is not a reflection of operations. Other income, you will note that there is also a large dividend payout that we made. Our investable surplus was down. Our accounting yields have also come down, which impact other income in line with the interest rate environment.

But outside of that, if you had to just go back into operations, if you look at our year-on-year performance, we have expanded our operating margins for IT services by 40 basis points year-on-year. In this quarter, we have had to take a one-off unusual item of where we had to provide for a bad and doubtful debt for one of the insolvencies of our clients, which has impacted and taken it down to 16.7%, not a reflection of our operations.

If you look at our data sheet, you will note that our utilization has actually improved. I can tell you that we have made good progress in terms of fixed price productivity. We have improved our performance operationally. There was also a plus that we got in terms of the rupee depreciation, and therefore, we've been able to hold it at a narrow band despite making a lot of investments for future growth. So we're quite pleased with our margin performance. Our endeavor would be to keep it in a narrow band even as we continue to invest for growth.

We'll just come back to you, sir. I have -- the third question...

Yes. The third question on operating margins, I've answered.

We'll just take one question from online. This is from entrepreneur. And Srini, this one is for you. It's a small break from the questions on numbers. You have completed a little over a year as a leader of Wipro. How do you define your leadership style at a time when AI is changing job roles while keeping Wipro values intact? And what is your broad strategy to swim through the various macro challenges like H-1B visa and discretionary spend, et cetera?

Thank you for the questions, which are not numbered, so that I'd appreciate that. So we recently -- last to last week, this quarter, we had -- last quarter, we had a Spirit of Wipro run. In fact, this was one of the biggest events where we have our employees do a run as part of Spirit of Wipro run from Sydney to San Francisco. In fact, we had a significant collection for our social causes as well. And we also sponsored the Bangalore Marathon, where 32,000 people participated in that.

So net-net, Wipro values -- and we're going to celebrate the 80th year of our existence in December. So I think the values, the Spirit of Wipro, integrity, ethics after 80 years continues to be strong. So the culture and the values of this organization will never change. We will make sure the AI will also be ethical, responsible, reliable and secure just like Wipro. That's -- and that's our promise -- proof of promise to our customers with the Wipro Intelligence. What was the second part of the question?

The second part was your broad strategy to swim through the various macro challenges.

Be intelligent with Wipro Intelligence.

Rohit, you can go ahead.

Rohit again from Businessworld. I wanted to kind of understand, the deal wins have been on the higher end of the spectrum...

Rohit, can you just keep the mic closer, please?

So the deal wins have been on the higher end of the spectrum for you guys. Are you able to predict or kind of think about what are the execution risks in the coming quarters? And if you can also talk about the deal ramp-ups that have kind of happened from the deals won.

So Rohit, I'm surprised that Nisha gave you a second chance to ask a question. Typically, she doesn't. Maybe I'll ask Aparna to add to that. As far as we are concerned, the execution, execution and execution is very critical for all the deals that we have won. So we're going to stay focused on that aspect of it. Any deal that we take up, we got to make sure, for the clients, it's the right transition, and we start and stay green in that aspect of it as we continue to transform and optimize for our clients. So that's how I would put it to myself and to my entire team at Wipro. And that's where the client centricity come in. Second part.

Yes. 9 of the 13 large deals that we booked are in our top 100 clients. We continue to win in our key clients. We are expanding. There is a substantial portion of renewal in some of these bookings, but there is also an element of new and an opportunity to expand. We are very excited that we are continuing to win in our top 100 clients, which is very, very core to the strategy. And therefore, we are quite pleased. And we right now are in a phase where we are looking at wrapping those deals up. Some of these deals, given the nature, will take more than a few quarters to ramp up, right? So you will see that coming through in the next few quarters, and that is the execution that Srini spoke about.

Rohit, do you have another question?

Nothing.

Good. In the spirit of generosity, Ayanti, would you like to ask your -- I think you switch it on from the bottom.

Yes. Can you -- yes. Just one more for Saurabh. How much of your hiring efforts now are focused on getting AI skilled workers and if you could also tell us about what premium are they coming at? And particularly for the freshers that you're hiring, what kind of AI skills are you looking at?

So 2, 3 parts. One is it's not that this is a skill that is available in abundance. So there's a lot of focus in organically building the skill in the organization. And if you look at it across the organization, across levels, Level 1, Level 2, Level 3 certification for people to get understanding in their own respective domains, along with our partners, the hyperscalers. So a lot of effort has been put across that, including leadership. So everybody is going through that.

Second is for the freshers, a lot of focus is train and hire. So we are spending time much before they come onboard in terms of in the campuses, work with their curriculum and give the inputs and trainings, assess them and then onboard them. So we have tried to change from hire and train to train and hire so that helps us to speed up in terms of deployment on projects. So that's the approach, which we are looking at it.

But it's a muscle, which we'll have to build as we move along over a period of time. And this is a huge skill and we'll have to just get it across everywhere. There is a premium. There are some data architects. There are people with data and the knowledge. Obviously, this is a scarce and like anything, whatever is scarce, there is a premium to it, so is the premium here as well.

Right, can we take one last question from Ayanti?

Srini, just to understand, with a lot of your peers looking at public sector deals, is that something that you will be focusing as well going forward? What does it look for Wipro?

The question is from [ Aishwari ].

Okay. So as far as we are concerned, we have a strategic road map in terms of where we want to play, both in terms of markets and in terms of sectors. If you remember, we call out 5 sectors, and that's where we are staying focused on.

Having said that, right, we also have a future-backed strategy because things keep -- markets keep changing and the industries keep changing. So for example, if you look at Asia Pacific, it seems to be a growth area for us, and we invested at the right time. And that's what I talked about APMEA, where the growth came from India, Southeast Asia, right, and Australia. So our strategy is look where the markets are and where we can execute well and then go after that. The specific question, I may not be able to answer right now, but when we have a good view of that, I will answer it if that's okay with you.

Right. We will have to conclude our Q2 FY '26 earnings press conference. For all the follow-up questions, please reach out to Media Relations team, and we will be happy to help you. Thank you, and we'll see you next quarter.