Wipro Ltd

Ladies and gentlemen, good day and welcome to Wipro Limited Q3 FY'26 Earnings Conference Call.

As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing "*" and then "0" on your touchtone phone.

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 & Head of Investor Relations). Thank you, and over to you, sir.

Thank you, Yashashri. Warm welcome to our Q3 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 kind 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.

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

••••• • • a••• • • ••••• who recognize 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, values, 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 few of our four markets, and four of our five sectors reporting sequential gains.

Americas 1 delivered sequential and year-on-year growth driven by strong performance in Healthcare, Consumer, and LATAM. 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 UK and Western Europe. 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% 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 is a unified approach to delivering AI-powered transformation across industries. This approach is anchored on three strategic pillars: • First, industry platforms and solutions. We are building consulting-led AI solutions across sectors. For example, platforms like Payer AI in Healthcare, NetOxygen for lending, and AutoCortex for automotive. These solutions help streamline operation, 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 operation from application management to infrastructure support and business process operation. WeGA adds AI-driven capabilities

••••• • • a••• • • ••••• across the development lifecycle from vibe 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, startups, 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 three 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 cost centers into high-impact innovation hubs.

Let me now share two examples of large deal wins that we had leveraging Wipro Intelligence. • First, a leading global education provider in the UK, which is expanding rapidly across markets, has chosen us as its strategic partner for a multi-year 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 Al-driven insights, and optimize costs through a global delivery model. • Second, a leading US-based fitness technology company has selected Wipro for a multi­ year transformation to accelerate its shift to a subscription-based wellness model and support global expansion. We will use both WINGS and WeGA, 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.

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 Al-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:

Thank you, Srini. Good evening, ladies and gentlemen, and wish you all a very, very Happy New Year.

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.

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 Comm 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 would like to draw your attention to two specific one-off charges that we took in our P&L that also impacted our net income. These charges are not included in our IT Services segment margin. First is an increase ofINR 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 would like to confirm that we have not completed the restructuring we wanted to do and do not anticipate any further

••••• • • a••• • • •••••

lower working days, which is not really, this is in some sense, offsetting for those furloughs. And therefore, we have given you the guidance we have. But these deals should continue to convert. Each deal is different. We are confident it will take some time, but it will ramp up. Sriniv, you want to talk onEMR?

In salary hikes, we will take a call in the next few weeks in terms of when should we be doing it. Our intention is to look at it this quarter, but we will confirm it during 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. Thank you.

So as far as EMR is concerned, Nitin, I will 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 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 staying focused on winning some of those deals, Nitin.

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

Thank you. Next question is from the line ofVibhor Singha! from Nuvama Equities. Please go ahead.

Hi. Thanks for taking my question and congrats on a solid performance. So Srini, my question was mainly on 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 set in this quarter. We continue to decline on a Y-on-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 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 sometime before some clarity on this vertical?

••••• • • a••• • • ••••• 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 has 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 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 is baked into our forecast, Vibhor.

Got it. And similar thing on the basically, I know it is 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 is a growth which we can sustain in the coming quarters as well?

Sorry, which sector did you refer to, Vibhor?

Aparna, tech and the Healthcare vertical, both of them separately.

You know, in some sense, in Healthcare, we have been consistently doing well. And we have had a sector 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 is also added to the performance. In terms of our Tech & Comm, we continue 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 & APMEA. That is the color I can give you.

Perfect. That is really helpful. Aparna, just one last question from my side. You mentioned about the few headwinds in Q4 that you will be facing. And ifl look at our guidance, it is 0.02% at the consol level. And if we were to, let us say, extrapolate the two-month incremental impact of HARMAN acquisition, the organic growth will probably fall somewhere between ( -1.5%) to(+ 0.5%). Is that the right understanding? And is the reason for that very much as you mentioned in your opening remarks as well?

You know, Vibhor, for some reason, we are not able to hear it clearly. Can you just load on your question?

I am sorry. His line is disconnected. We will move on to the next question. Next question is from the line of Ravi Menon from Macquarie. Please go ahead.

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There is no such impediment. I mean, you can do that as in when you feel, it is the right time. Is that the way to look at it? Yes. Absolutely, absolutely.

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

Obviously, we cannot talk about it quantitatively, Kawai. And qualitatively, like I have said, it is 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 have been able to do that and that is fully into our revenue starting Q3. So that has played out perfectly to plan.

Right now, in some of the other larger deals, that mega deals that we could be winning in terms of vendor consolidation, these deals typically have both an element ofrenewal and new. Obviously, the renewal is fully in, and that continues. And we are not seeing any changes in terms of 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 are 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 it will take six quarters, that is what I alluded to. So it is going to take that time. And we are hopeful that this will flow through in the coming quarters.

Noted. And thank you so much. All the best. Thank you. Thank you, Kawai.

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.