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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.

Ladies and gentlemen, good day, and welcome to Wipro Limited Q1 FY '26 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded.

I now hand the conference over to Mr. Dipak Bohra, Senior Vice President, Corporate Treasurer and Investor Relations. Thank you, and over to you, sir.

Yes. Thank you, Yashashri. A warm welcome to our quarter 1 financial year 2026 Earnings Call. We will begin the call with 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 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.

Thank you, Dipak. Good evening, everyone. Thank you for joining us today. Let me start with a quick view on quarter 1 and the broader environment. We started the quarter facing significant macro uncertainty which kept overall demand muted. Our clients prioritized initiatives with immediate impact, primarily focusing on cost optimization and vendor consolidation. And at the same time, they accelerated their AI, data and modernization programs. We saw a clear trend of many AI projects moving to scale and production. We quickly aligned with these priorities, deepened our partnerships and secured key deals. The large deals we closed this quarter and last quarter, along with a strong pipeline put us in a good position for the second half of the year.

With that, let me now turn to our quarter 1 performance. I will start with key financial highlights and an overview of our markets and sectors. Aparna will provide further details on the financials in her remarks.

Our IT Services revenue for quarter 1 was $2.59 billion, quarter-on-quarter degrowth of 2% in constant currency terms within our guidance range. Our IT Services margin was 17.3%, an expansion of 80 basis points year-on-year.

In our markets, Americas grew 1.5% year-on-year in constant currency terms, and we are continuing to see strong yield momentum here. APMEA's revenue stayed flat. Digital spending in India, Middle East and Southeast Asia kept the market resilient. Europe continued to face headwinds and clients remain focused on maintaining their competitiveness in this environment. Capco grew year-on-year, driven by strong performance in Latin America.

Turning to our industry sectors. In BFSI, demand is strong and steady. Clients are modernizing their IT landscape with a sharp focus on AI-led efficiency and transformation. We also won 2 mega deals here, which I will discuss later.

In consumer and EMR, we are seeing a more cautious mode. Retail, CPG and manufacturing have been most affected by tariffs. Even though discretionary budgets are tight, outsourcing renewals are creating new opportunities to gain wallet share.

In Technology and Communication, we are seeing a clear shift towards AI investment. Clients are looking to innovate and future-proof their software and platforms. We won a large deal here that has the potential to become a mega deal. Health care continues to do well as clients invest in modernization and digital transformation.

While payers are under cost pressure, the overall outlook for the sector remains positive. These priorities and shifts in client focus are evident in the strategic deals we have won in quarter 1.

During the quarter, we reported bookings worth $5 billion in total contract value, a growth of 51% year-on-year. Our large deal bookings reached $2.7 billion, up 131% year-on-year. This includes 16 large deals this quarter, including 2 mega deals. Several of these wins were driven by vendor consolidation, where we continue to build strong momentum. These deals reflect a good balance of extension of existing work and securing new business. They also highlight our capabilities, domain expertise and progress in AI.

Let me share 3 examples to bring this to life. My first example is a global banking leader that selected us as a strategic partner to transform technology across multiple business lines and enterprise function. They chose us for our deep BFSI expertise and consulting-led approach. We will transform their digital ecosystem, modernize their cloud and data platforms, improve cyber resilience and embed AI across the software development life cycle, helping boost engineering productivity and reimagine core processes.

Second, a leading global semiconductor company signed a multiyear agreement with us to modernize its entire product life cycle. Building on our long-standing partnership, we will drive end-to-end engineering transformation from silicon design and system software to platform development and hardware validation. Our focus is on using AI and automation to accelerate development, improve quality, reduce costs and enable agile practices.

Finally, we secured a mega deal with a leading North American bank extending a decade-long partnership. We will transform the technology across core banking, wealth management and retail using our AI-powered global delivery framework. This includes modernizing their cloud infrastructure, strengthening cyber resilience and enhancing their digital ecosystem and enterprise applications. This will accelerate innovation, improve time to market and deliver a more customer-centric experience for our clients.

In fact, these examples highlight a clear trend. AI is no longer a niche. It's becoming essential to how businesses operate at scale. At Wipro, we see AI as the force reshaping industries and amplifying human potential. We at Wipro are building an AI-first, AI-everywhere enterprise focused on solving complex challenges, accelerating delivery and reimagining operations at scale.

By embracing autonomous and Agentic AI, we are transforming business models and how organizations work. In fact, our AI capabilities are integrated into both industry and cross-industry solutions. By combining domain expertise with AI, we are able to deliver value through solutions such as hyper-personalized wealth management and predictive industrial insights, to name a few. So far, we have deployed over 200 AI-powered agents using advanced technologies from leading hyperscalers. For example, these agents enables smarter lending, intelligent claims processing and autonomous network management.

We are equally focused on talent and training our team with the skills and mindset to thrive in an AI-first world. Building on the strong foundations and our continued focus on 5 strategic priorities, we are well positioned for the future.

I would like to now discuss our outlook for the next quarter. While we are cautious given the macro environment, our strong order book, healthy pipeline and focus on consulting-led AI-powered solutions, give us confidence in delivering long-term value to our stakeholders. Returning to profitable growth remains our priorities. Based on our visibility, we are guiding for a sequential growth of minus 1% to plus 1% in constant currency terms.

With that, let me hand over to Aparna for a detailed view on our financials. Thank you, again, and over to you, Aparna.

Thank you, Srini. Good evening, ladies and gentlemen. Let me give you a brief update on the financial performance for the quarter ended 30th June 2025. After that, we can open it up for questions.

Our IT Services revenue for Q1 sequentially declined by 2% in constant currency, which is well within our guided range. On a year-on-year basis, the revenue declined by 2.3% in constant currency terms. Our operating margin for Q1 was at 17.3%, an expansion of 80 basis points on a year-on-year basis. As Srini alluded, many of our large deal wins are in the nature of cost takeout or vendor consolidation. These deals typically come with upfront investments and will cause pressure on the cost. As always, we will continue to focus on operational excellence in order to offset these pressures.

Let me give you color on our strategic market unit and sector performance. All growth numbers that I will share will be in constant currency. Americas 1 grew 0.2% sequentially and grew 5.8% on a year-on-year basis. Americas 2 declined 1.7% sequentially and declined 2.7% on a year-on-year basis. Europe declined 6.4% sequentially and 11.6% on a year-on-year basis. APMEA has grown 0.6% sequentially this quarter, though declined marginally on a year-on-year basis.

Moving to sectors. BFSI declined 3.8% sequentially and also declined 3.5% on year-on-year terms. Healthcare grew 0.5% sequentially and has grown 3.5% year-on-year. Consumer declined 4% sequentially and declined 5.7% on a year-on-year term. Technology and Communication grew 0.4% sequentially and degrew 0.3% year-on-year. Energy, manufacturing and Resources declined 0.7% sequentially and 2.4% on a year-on-year basis. Capco continues to perform well, growing 6% on a year-on-year basis.

Let me share with you some of the other key financial parameters. Our net income grew 10.9% on a year-on-year basis in this quarter. This was after absorbing for a onetime restructuring cost of INR 246 crores. Our EPS for the quarter at INR 3.2 grew by 10.8% year-on-year. Our free cash flow generation continues to remain robust. It was at 115% of our net income. This takes our gross cash, including investments to be at $6.4 billion and net cash actually expanded quarter-on-quarter.

In Q1, our net other income grew 62% on a year-on-year basis. Accounting yield for the average investments held in India was at 8.1% for Q1. Our effective tax rate was at 21.6% for Q1 '26. This is versus 24.5% that we have for the last year and same time last quarter was also 24.5%. Our hedges continue to be in line with our policy at about $2.5 billion of ForEx derivative contracts as hedges at the end of Q1 '26.

Finally, before I move to the guidance, I would like to share with all of you that in our Board meeting today, the Board of Directors have declared an interim dividend of INR 5 per share. With this, we would have now distributed cash in excess of $1.3 billion in the last 6 months. As you know, we revised our capital allocation policy in January 2025 to increase the payout to a minimum of 70% of our net income over a block of 3 years. Thus, going forward, subject to the cash position and Board approval, our endeavor would be to pay these dividends twice a year, once along with the June results and then along with our December quarter results.

In terms of guidance, to reiterate what Srini shared, we expect revenues from our IT Services revenue business to be in the range of $2.56 billion to $2.612 billion. This translates to a sequential growth of minus 1% to plus 1% in constant currency terms.

With that, we can take questions. Operator?

[Operator Instructions] We'll take our first question from the line of Abhishek Kumar from JM Financial.

Congratulations on very strong deal wins. My question is -- the first question is on the deal win itself. So on an LTM basis, the overall deal TCV has grown by 10%. But if I look at the smaller deals on an LTM basis, it's down 8% Y-o-Y. So my question is, have we seen any kind of given these large deals are longer in tenure, any material increase in deal duration? And therefore, how should we look at the ACV growth for us to really model growth going forward?

Thank you, Abhishek, for the question. You're correct that our TCV has been growing much faster than the ACV. And this is also because the deal tenures have been going up. Our pipeline has a good balance of both vendor consolidation, cost takeout deals, which are typically longer tenure and deals that are coming in, in the areas of data, AI, modernization that Srini alluded to. So it is a good mix of deals. But it is also true that today, if you look at just the -- from a value standpoint, there is -- the large deals are dominating the pipeline in terms of how we've won. Because last year, we won 2 mega deals. This year, we're starting with 2 mega deal wins in one quarter.

So therefore, in some sense, the TCV booking led by our large deals is indeed growing much faster than the smaller and medium deals. So it's also true when you keep in the context that the discretionary spends are being weak. And what is #1 priority and agenda for our clients is also cost take out. And in some sense, that also fuels what they would like to spend in newer areas. So that's basically how I would like to characterize that.

Sure. That's clear. Second question is on capital allocation. The last 2 payouts after the tax regime change has been in the form of dividend. So have we decisively moved towards the dividend route and is buyback now not in consideration?

We raised our capital allocation policy from 45% to 50% of net income to upwards of 70% on a 3-year basis. So -- and when we did do that, we had communicated that we continue to prefer dividends and buyback as a means of returning cash to our shareholders. For now, in the January quarter and this quarter, we've given our dividends. Buyback continues to remain an option, and we could consider that at an appropriate time.

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

Just -- Aparna, I wanted your thoughts on the margins. Now you did mention that a lot of these deals are -- obviously will have some margin impact. So considering that you will have an execution of a lot of these deals coming through. Do you believe that current margins can hold on from where it is? Or how should we sort of think about margins on a going-forward basis?

We don't guide for margins, Nitin. We've had a very good run on operating margin improvement over the last 8 quarters. We are very excited with the quantum of deals that we booked. These deals prove the capability of us winning in large vendor consolidation. In fact, we shared that nearly a substantial portion of our large deals actually came from our top clients. So we're very happy with the win. Our focus and energy is going to be on conversion, right? A lot of these deals will ramp up over the next 4 to 6 quarters. These deals have a good balance of both renewing and an element of expansion. And the expansion will come through ramp up consistently over the next few quarters, right?

So all hands on the deck that will mean we will have to make certain upfront investments. And these are larger deals and are like strongly contested. And therefore, the nature of the deals, the margin profile is weaker compared to the rest of the portfolio. So there will be some pressure. You've seen our ability to continuously improve our operating margins. Those operating levers will continue to remain at play. And that's what I can share at the moment.

We'll take our next question from the line of Gaurav Rateria from Morgan Stanley.

Congrats, Srini; congrats, Aparna on good execution. My first question is on the kind of the deals. If you look at the last 1 year, the areas where we have won the deals, like the deal with the insurance on the claims side, the deal with the telecom player in the U.S. These are areas where Wipro has traditionally not been very strong or been present. So what tweaks we have made to be able to win deals, which probably traditionally has not been very strong for Wipro? So just trying to understand the initiatives taken around that.

Thanks, Gaurav. This is Srini here. Thank you for the question. If you look at what we called out at the beginning of last year, we said we want to be consulting-led and AI-powered. What that meant, Gaurav, is as part of the strategy, we called out 5 sectors and within those sectors, specific industries where we want to be dominant. So that means we invested in terms of creating domain expertise. Two, we all know, like Aparna said, we have won these deals -- these mega deals in some of our top clients. We also talked about as part of a strategic priority that we're going to invest in to grow -- growing our large accounts.

So the 2 strategic priorities that we talked about, followed by the third one where we said we're going to build industry and cross-industry solutions. All the 3 strategic priorities really helped us to understand what the client was looking at, both in the context of business, in the context of experience that they were looking for their clients and the way they have to modernize them. And how to leverage AI to bring in efficiency, optimization and velocity.

And so these deals are for me personally, very exciting, Gaurav. And that's the reason I think we've been able to dominate in some of the deals that we talked about. Of the 16 large deals, 2 of them were mega deals, one has the potential to be a mega deal and I talked about the 3 case studies. And if you look at it, clearly, it has been AI-powered, it has been consulting-led and it also understands the client's landscape. And we will continue to do more of this, Gaurav, as we move forward. And the last point is also being very proactive in terms of listening to the client and responding to their needs.

Second question on you mentioned last time that there were certain pauses on large projects. You gave example also on SAP project that were passed by the clients. Have you seen any update on that? Have things started to move? And is this part of your guidance?

Gaurav, if you look at the overall environment in the context of tariffs, in the context of geopolitics and the economy, I think there are certain sectors which have been really impacted. And we called out manufacturing, especially automotive and industrial. We also called out retail and CPG, which has a great impact due to overreliance on global supply chain. And one of the projects that I called out last quarter was in one of the sectors, and they are still -- as you know, tariffs are still being evaluated. So the client has paused on that particular program at this point in time, and they would want to have a complete clarity before they get started. So those kind of projects, Gaurav, are still on hold. And that's -- I'm hoping that if things settle down in the next couple of quarters, hopefully, the client will come back to reinvest in those transformation programs.

Last question on margins. I understand the puts and takes you explained on margins, especially on the large deals upfront investment. But fair to say that you aspire to be in the band of around 17% that you had been calling out in the past few quarters, keeping these puts and takes into mind?

So certainly, that remains a band that is where we would like to operate, Gaurav. But having secured these deals, our focus and priority is going to be to ramp up these deals and execute and deliver them. And therefore, there will be certain investments. So there could be certain quarters where we will have to make those investments. But you're right, when you say that 17% to 17.5% band that we called out earlier, remains a band that we would like to operate in.

We'll take our next question from the line of Surendra Goyal from Citi Group.

So just one question on the deals again. Like how comfortable are you that the 10-odd percent increase on trailing 12-month TCV will translate into a meaningful growth acceleration? And the reason I ask is like in FY '23 also, we saw TCV was up 28% year-over-year, but FY '24 and FY '25, we saw a revenue decline. And in that context, is it possible to provide any sense on the ACV growth even directionally?

Maybe I'll give in my comment and ask Aparna to add to that. First and foremost, if you look at the opening remarks that I made is that we had a very strong bookings in quarter 1. We have a very strong pipeline in quarter 2. And I also said that our H2 will be much better than H1. And this confidence comes based on the bookings that we have done. And the point that Aparna talked about, we are now staying very focused on execution. Some of these deals will get transitioned and getting to steady state anywhere from 3 months to 6 months time frame. So that gives us a confidence to talk about second half, Surendra. And maybe, Aparna, if you want to add some more.

Well, Surendra, your observation is right. Sometimes these TCV and ACV have a different growth trajectory given how long tenor deals keep getting signed and therefore, what impact that has on conversion. The other factor that has coming the way of the conversion has been just the discretionary spend environment and therefore, how there have been subsequent leakages on that count. For now, at least the discretionary spend environment seems to have stabilized. One was hopeful perhaps at the start of this calendar year that it would improve. But for the moment, I think the way we are looking at this financial year is going to be stable.

If we keep that assumption in mind, you should be able to see a much better conversion of some of the bookings into revenue, Surendra. That's the endeavor.

And any comments on like ACV growth, even directionally just for us to understand the trends a little better?

I think the ACV growth this quarter has grown well on a year-on-year basis as well. So this is not coming only on the back of longer-term deals. And we feel fairly confident about these deals.

Sure. And just one clarification...

[indiscernible] things are also quite good. Yes.

Sure. Sure. And just one last question. Capco, you mentioned 6% Y-o-Y. Could you share the sequential growth number there?

So we don't -- we're not calling out the sequential growth rate for Capco. It's a part of all the units. One additional point that we had called out in our earnings or in the media interaction today is that we have had $1 billion of bookings trailing 12 months. So it should give you a good sense. And even into quarter 2, we're looking at a good momentum and trajectory as we start the quarter.

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

And congrats on a solid performance in a very volatile environment. So my question was again on Capco. I think as you mentioned, the Capco reported a decent mid-single-digit Y-on-Y growth. So basically, if you -- actually, if you could basically take us through the overall environment that we are looking at. I mean this is an environment in which the post tariff uncertainty, one in which we have seen a lot of challenges and discretionary spends being put on hold.

Capco by the nature of its business probably reflects that and still we are seeing good growth. Do you see this basically momentum continuing? Any reasons that you see specifically that we've been able to do well while the others might be facing challenges? Any bit of color on that will be very helpful.

Vibhor, as far as Capco is concerned, just to add to what Aparna talked about in the context of the year-on-year growth and also the $1 billion booking that Capco did. We have seen Capco growth across U.S. and APMEA on a year-on basis, right? And growth is driven across insurance, wealth and asset management and energy to be very specific where the growth came. Also, there has been a good momentum in both APMEA and LATAM, especially in Brazil, which is the actually outside Capco's traditional geographies. So these actually helped us in the context of the growth and opportunities that we see going forward at -- for Capco.

[Technical Difficulty]

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

Yes. Sorry, I meant to ask, is the pipeline also looking good in Capco for the coming quarters?

Yes, it continues to look good for the coming quarters, Vibhor.

Got it. Got it. That's really helpful, Aparna. My second question is basically on the overall -- basically the margins front. So I think, again, a solid performance in this despite the revenue decline. So I don't know if you've answered this before, sorry, I was able to joint the call late. But in terms of margins, going forward, do we expect to maintain the same trajectory of 17% to 18%? Or given the kind of basically resilience that we have shown, there could be a possibility of maybe overshooting that range?

So we don't guide for margins unlike some of our peers. We have the past share that there is an aspirational band of 17% to 17.5%. If you look at quarter 1, we have landed somewhere in the middle of that band. But looking forward, our focus is going to be conversion of some of these mega deal wins that we've had, large deal wins that we've had. And some of these large deal wins will come with upfront investment and lower margins. So there are going to be pressures that are going to get created. We will have to offset them through better operational rigor and a lot of levers that are there at our disposal. But it is going to be a work that cut out for us. And that's all I can share at the moment, Vibhor.

Got it. Got it. So just last follow-up on that. So I mean, with all the headwinds in place of these large deals ramp up and all, we still aspire to maintain our margins in the 70% to 75% band range?

I said that what we delivered in Q1, we have done well in order to improve our profitability. For now the -- our #1 priority would be growth and execution.

Next question is from the line of Ravi Menon from Macquarie.

Congrats on really strong deal wins. Srini, a little bit confused about the commentary in Americas. You sounded very optimistic about the pipeline there and the strength of demand. But when you went by the industry by industry segment, it didn't really -- it sounded more mixed with manufacturing, retail, CPG, all, you're calling out some weakness there. So could you talk a bit about the Americas? And then also talk about the decline in Europe this quarter, if that's very temporary and are you expecting a bounce back there?

Sure, Ravi. Let me take it one at a time. So if you look at the sectors in the U.S., we have BFSI. And like I said, that BFSI, the current pipeline is very strong and steady. Having said that, in quarter 1, we won 2 mega deals, which are very strategic for us as a client and also for the client bringing in the power of AI and bringing in the power of our execution capabilities, if you will. So in that context, in the U.S., BFSI, I see a positive traction.

Second is Technology and Communications, which is another sector of ours. There again, if you look at it, Ravi, we won a large deal, which is likely to be a mega deal. And we are staying focused on that because both technology clients and also communication clients, they are investing heavy in AI because they want to modernize their current software and platforms, which is one of our core and also it's also a strength because it's coming through our engineering domain. So that sector will continue to be positive for us.

Third, in terms of Healthcare. Healthcare traditionally in the U.S., we've played a big role in the payers, providers and life sciences and that have continued to grow, and we see that to continue to grow. And also some of the industry solutions around payers that we have built actually is resulting in good differentiation and wins for us in the healthcare sector.

Fourth, like you rightly said, consumer business has been a challenge. Within consumers, we have retail, CPG and travel transportation. But if I look at the deal wins in quarter 1, specifically in the retail segment, we have had some good interesting wins. And I think we are staying close to what's happening in the U.S. economy, how the tariffs will play in and how this particular business will keep changing or evolving.

The last one is energy, manufacturing and resources. In that, you're right, manufacturing has been slow for us. And we continue to stay focused because especially in the automotive segment, I think we have seen the challenges that companies are going through. But we are also looking at opportunities where we can help them in the context of cost takeout. And that's something that we are proactively discussing with those customers. So that's how the U.S. and the sectors are playing out, Ravi.

Now coming to Europe, right? The pipeline continues to be strong in Europe. And in the BFSI sector, specifically in Europe, we have a good pipeline. And having said that, the large Phoenix deal that we won in quarter 4, we are going through the final planning phases. And actually, the revenue will start coming in quarter 3 that can give a good momentum for us in Europe.

Second, we also are staying focused on some of these deals, which are cost takeouts and vendor consolidation. And we have wins now. We have stories now. We have strength now. We will go back and bring that to bear in Europe. While the market in Europe is definitely uncertain, obviously, we have a good view on what's happening in each of the countries and across the Europe, European Union. But what is more important for us is staying focused on those clients and do the turnaround for us in Europe, which has not been greater in the last couple of quarters, but I'm very confident with the team that we have put together, the energy and the enthusiasm they are bringing in and the pipeline they have, we'll get there.

A quick question on this restructuring cost about $2.4 billion. This is showing up, I guess, as the unallocated cost in the segmental reporting, right? And whenever we had something like this earlier, there was a detailed footnote explaining what is restructuring was due to and whether we are taking impairment charges. Could you talk a bit about what's the restructuring charge this quarter?

The restructuring costs pertain to restructuring in Europe that we did. This is very limited to a few associates in Europe, and this is one-off in nature and unlikely to recur. And you're right, it is a part of the reconciling items and it's part of our EPS and our net income.

Next question is from the line of Manik Taneja from Axis Capital.

Congratulations on some of the internals that you've shown. I had a question with regards to some of the challenges that we've seen in Europe, while the Phoenix large deal will help us and possibly you're talking about a strong pipeline there. But if you could talk about some of the customer-specific challenges that you've had in Europe over the course of the last several quarters, are they largely behind us? That's question number one.

The second thing is that while we've continued to essentially defend our business within our top customers and which also reflects in the revenue performance within top customers, but our client metrics seem to essentially convey some sort of a weakness. If you could just talk -- elaborate as to what may be causing that? Those would be my 2 questions.

Sure, Manik. In Europe, we have said that it's a combination of both the macroeconomic environment, the discretionary spend environment and a few client-specific challenges. Client-specific challenges are now behind us. To say when would Europe bottom out and start performing, we do feel confident that in the second half of this financial year, we should start seeing some stabilization and growth in Europe. One, certainly because of the Phoenix deal win, also because we see some of these client-specific issues are behind us. More to be done. More is desired. I think Srini has spoken about a good pipeline. We will continue to remain focused on converting those pipelines and also remaining very close to our top clients in that region.

And what was your second question, Manik. Can you just remind me?

That response helps. I was also trying to [indiscernible] you with regards to our client metrics performance. So while one looks at our...

Yes, I now recollect your question. So yes, in some sense, if you look at the total number of active clients that has come down over a period of time, again, reflects discretionary spend environment. There's nothing strategic or intentional that we are doing in order to reduce any number of clients. But it's also a very, very -- we continue to also win the hunting logos, right, the big circle accounts where we would like to expand. That's something that we are doing, and we will continue to accelerate that momentum. But we are also investing a lot in our large accounts. And in some sense, you should look at our greater than $50 million account, they've actually grown quarter-on-quarter. We should continue to see momentum in our what we call as metal accounts. And you will see that performance reflected there.

We'll take our next question from the line of Kumar Rakesh from BNP Paribas.

I have just one question, more of a clarification. So it seems like on margin earlier, when you used to talk about that it will be in a narrow band, one do seem to be focusing more on driving top line growth. Earlier, Srini had talked about that the priority would be on profitable growth, and you have spoken about that the second half performance would be stronger than first half. Will you say that would also be reflecting in the bottom line growth as well? Will that also be better than the first half in the second half?

We don't guide for either the full year revenues or the profit, right? Yes, in the last few quarters, we've been talking about narrow bands. In the last 8 quarters, we have consistently improved, right, our margins. And we've also created a good runway for us to invest back into our business. And the deals that we have secured are in our large client relationships, and they will need certain investments that we will have to make upfront. And we will go ahead and make what -- and focus on growth and execution. Eventually, yes, this will result in profitable growth.

Got it. The only reason I was trying to ask this question was to understand what could be the bottom for margin if you're investing? Is there something you would want to -- earlier we had seen during this period -- earlier period when we were focusing on driving growth margin had even fallen to 15% sort of a level. So is there a scenario in which for a few quarters, we could see similar contraction in margin while we're ramping up the deal and hence, could have an impact?

We are not sharing -- yes. Right now, we are not sharing any commentary on that. Like I said, we will now focus on this execution. We are in a good place as far as margins are concerned in Q1. We will take it from there. And we will certainly keep the market posted as some of these deals will start to ramp up what we are able to offset, how we are able to look at some of those pressures being offset and then we will keep you posted accordingly.

We'll take our next question from the line of Sudheer guntupalli from Kotak Mahindra AMC.

Congrats on a good quarter and strong deal wins. First question, on the deal wins spend compared to the long-term trend line of mix between net new deals and renewals, has this quarter seen any material divergence maybe in terms of skew towards renewal?

No, I don't think so. In fact, we have a good mix of both renewal and with an element of expansion in both the mega deal wins that we spoke of. One large deal where we have a potential to make it mega has a substantial portion of new in it. So I think when you look at overall large deals, I think the mix of renewals and new is quite evenly poised, and in some time, we're excited about the bookings.

Sure. So it is similar to what we had seen in the previous few quarters, right?

So Sudheer, just to reemphasize on the excitement that Aparna is talking about. These are all global companies. These are companies where we have a footprint. So the good news is that we have secured our current book of work and now we are getting a new book of work. The focus for us is how do we maximize the new book of work. And we are working through the planning process, and we will stay focused on executing those deals. And it's a very, very intense focus on execution and delivering to our clients.

Got it, sir. And in your press note, Srini, you mentioned that discretionary spends are coming back in pockets, even if it is not in a uniform fashion. So can you elaborate on which pockets are those, which specific geographies and verticals apart from the BFSI which you spoke about?

See, Sudheer, broadly, if you look at it, the discretionary spend is coming around data, AI and modernization. And to just give you a little bit of color around that. For example, we have won a deal where we are transforming of -- for a particular retailer, we call it as fashion intelligence, right? AI will know what to sell. And this is a large American fashion brand. They want to enhance the sales by identifying and optimizing 40 product features per item. So how do you display these features, right, whether it's in terms of the differentiation of the product, intelligently extracting and analyzing the impact on the market performance and also helping their sourcing team on the strategic product decisions that they have to take to buy it. So that's one example of a discretionary spend, which is, of course, integration of data and AI, right?

There are -- so similarly, one of the financial services company, we are working with them on the power of intelligent automation and what we call it as smart credit decision, right? This is -- right now, the client has a lot of manual credit risk operations. They are looking at it, how can we make this more AI, so that it is less error prone and also it's more accurate, right, so that they can disrupt the existing workflows. So these are the projects that are very important need of the business, and that's the discretionary spend. I talked about entirely 2 different sectors. But those are the -- just to give you a context around that, Sudheer.

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

Yes. Congrats on deal wins traction. The first question is when we say when we execute these mega deals, there could be a margin pressure because of the upfront investment. So I wanted to understand the nature of the investment and the margin pressure. Is it more competitive pricing because our EBIT margin is already lower than versus most of the other peers? So just want to understand. And second, these deals also involve some amount of higher pass-through sales or these are normal traditional type of a deals?

So Sandeep, first and foremost, none of the deals have the pass-through. Second, when Aparna said that we have to invest into these deals, this is the time for us to do the planning process because let's say, when there is a vendor consolidation, the kind of the teams that we need to put together, both in terms of program management, program delivery and power management and so on and so forth, you've got to get the talent first, get them all acclimatize the customers' environment and the process that they do. So these are all the investments that Aparna is talking about. Nothing to do with the pass-through, Sandeep.

Okay. Okay. Fair enough. And any comment on pricing? Are you believing the competitive pressure is very high because of macro? Everybody is now behind growth even in the large cap basket?

So Sandeep, like Aparna said, right, some of these large deal wins are very competitive. There will be price pressures on that. What matters is how do you transition and how do you execute these deals. And if you look at the current demand environment, I would say that each of these deals are extremely strongly contested. What's good news is that we have won despite that competition. And so -- and this is how the industry has always functioned. So we and everybody has to innovate. We have to generate more savings and continue to stay competitive.

Okay. And Aparna, you also mentioned we have to offset this with a new levers and you believe there are more levers. So can you elaborate on the same because your margin execution has been really excellent, which has juiced out headroom in many of the margin levers. So what are the pending levers which you believe can help you to offset some of these pressures?

I think productivity in fixed price programs, they continue to be a theme. I know we talk about it all the time, but -- and with the newer technology with a lot of AI focus, the productivity that we can drive is certainly a big lever. Secondly, even as we speak, there is margin improvement that we can make in some of our acquired entities and businesses as they go from strength to strength. There will be improvement in margins that they are all executing to.

Thirdly, if I had to look at it, we are continuing to optimize our G&A. Again, on the back of AI, on the back of a lot of process efficiencies that we are driving, that will continue to be a focus of simplification and reducing the number of layers. These have remained something that we -- and we continue to focus on some of those levers.

Apart from this, the traditional focus will remain utilization we've invested in. Maybe we will need to continue to invest in utilization for a little bit more. But there are other factors like pressure hiring, rotation, pyramid optimization, all of which become easier as we grow and win more programs, and that's also something that will continue to operate as a lever.

And over and above that, we -- ForEx is something that has traditionally helped. That's something that is not within our control. But that is always something that has played out in the past as well.

We'll take our next question from the line of Ashwin Mehta from AMBIT Capital.

Srini, in terms of the competition that you have won these deals against who were the incumbents here? Was it largely the Indian providers or these were mostly MNCs?

Ashwin, I never talk about competition or name them. All I can tell you, Ashwin, is these were well-fought deals, very satisfying at the end of the day, Ashwin.

Okay. And just one follow-up. So given our commentary that Capco is growing at around 6-odd percent from a Y-o-Y perspective. The BFSI portfolio ex of Capco seems to have declined by 6% to 7%. So what is exactly driving that? Is it largely ramp downs at clients? Is it some share loss? So any color here?

I think these are largely ramp downs that have happened. We have spoken about even within BFSI, I think Americas is much stronger. Asia Pacific has also had a much stronger growth in BFSI. The weakness is also largely emanating from Europe. And we are very confident based on the deal wins and the bottoming out of some of the client-specific issues that we can look to stability and growth. Srini has spoken about 2 mega deals wins in BFSI. Phoenix is certainly in the same space that we had won in Q4. So the second half onwards, things look more optimistic, all focused on execution.

Just a follow-up, Aparna, in terms of the restructuring charges that we have taken, are they segment specific or they're across the board in Europe?

They are across the board in Europe. And -- but very contained, the number of employees that would have got impacted because of this is very, very small and not material in the context of the overall business.

Yes. Yashashri, we can now close the call.

So since [indiscernible] last one, over to you, sir.

So 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 evening. 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 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 first 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, everyone. I'll just give it a minute, of course. Again, good evening, everyone. Thank you for joining us today. Let me start with a quick view on quarter 1, and of course, the broader environment that we are seeing today.

If you recollect, we started the quarter facing significant macro uncertainty, which kept overall demand muted. In fact, our clients prioritized initiatives with immediate impact, focusing on cost optimization and vendor consolidation. And at the same time, they accelerated their AI, data and modernization programs.

We saw a clear trend of many AI projects moving to scale and production. So we quickly aligned with these priorities, deepened our partnerships and, of course, secured key deals. The large deals we closed this quarter, and of course, the last quarter, along with a strong pipeline, put us in a good position for the second half of the year. With that, let me now turn to our quarter 1 performance.

I'll start with key financial highlights and an overview of our markets and sectors. I'll request Aparna to provide further details on the financials in her remarks.

Our IT Services revenue for quarter 1 was $2.59 billion, which is a degrowth of 2% in constant currency terms, within our guidance range. Our IT Services margin was 17.3%, an expansion of 80 basis points year-on-year. In our markets, Americas grew 1.5% year-on-year in constant terms, and we are seeing strong yield momentum in Americas. APMEA revenue stayed flat. However, digital spending in India, Middle East and Southeast Asia kept this market resilient for us. Europe continued to face headwinds and clients remain focused on maintaining their competitiveness in this environment. Finally, Capco grew year-on-year, driven by strong performance in Latin America.

Now turning to our industry sectors. In fact, in BFSI, demand is strong and steady. Clients are modernizing their IT landscape with a sharp focus on AI-led efficiency and transformation. In fact, we won 2 mega deals here, which I will discuss later.

In Consumer and EMR, we are seeing a more cautious mode. Retail, CPG and manufacturing in these sectors have been most affected by tariffs. Even though discretionary budgets are tight, outsourcing renewals are creating new opportunities for us to gain wallet share.

In Technology and Communications, we are seeing a clear shift towards AI investments. In fact, clients are looking to innovate and future-proof their software and platforms. We won a large deal here. And in fact, that has the potential to become a mega deal. Health care for us continues to do well as clients invest in modernization and digital transformation. While payers are under cost pressure, the overall outlook for the sector remains positive. These priorities and shifts in client focus are evident in the strategic deals we have won in quarter 1. Let me talk about that.

During this quarter, we reported bookings worth $5 billion in total contract value, a growth of 51% year-on-year. Our large deal bookings reached $2.7 billion, up 131% year-on-year. This includes 16 large deals this quarter, including the 2 mega deals I just talk about -- I talked about. Several of these wins, I want to repeat, several of these wins were driven by vendor consolidation, where we continue to build strong momentum. These deals reflect a good balance of extension of work and securing new business. They also highlight our capabilities, our domain expertise and the progress we have made in AI.

Let me share 3 examples. To bring this to life, all three are -- two of them are mega deals and one of them is potential mega deal. My first example is a global banking leader that selected us as a strategic partner to transform technology across multiple business lines and enterprise functions. They chose Wipro for our deep BFSI expertise and consulting-led approach. We will help transform their digital ecosystem, modernize their cloud and data platforms and improve cyber resilience by -- and also embed AI across the software development life cycle, to boost engineering productivity, and also reimagine core processes.

Next, a leading global semiconductor company signed a multiyear agreement with us to modernize its entire product life cycle. Building on our long-standing partnership, we will drive end-to-end engineering transformation from silicon design and system software to platform development and hardware validation. Our focus is on using AI and automation to accelerate development, improve quality, reduce costs and enable agile practices.

The third one, we secured a mega deal with a leading North American bank extending a decade-long partnership. We will transform their technology across core banking, wealth management and retail, using our AI-powered global delivery framework. In fact, this includes modernizing their cloud infrastructure, strengthening cyber resilience and digital ecosystems and enterprise applications.

For a client, this will accelerate innovation, improve time to market and deliver a customer-centric experience. If I notice, these examples highlight a clear trend. AI is no longer a niche. It's becoming essential to how business -- businesses operate at scale. At Wipro, we see AI as a force reshaping industries and amplifying human potential. We are, in fact, building an AI-first, AI-everywhere enterprise focused on solving complex challenges, accelerating delivery and reimagining operations at scale.

By embracing autonomous and Agentic AI, we are transforming business models and how organizations work. Our AI capabilities are integrated into both industry and cross-industry solutions. So by combining domain expertise with AI, we are able to deliver value through solutions such as hyper-personalized wealth management for our BFSI clients, predictive industrial insights for our manufacturing clients.

So far, we have deployed over 200 AI-powered agents using advanced technologies from our leading hyperscalers, who are big partners. Just to give an example. These agents enable smarter lending, intelligent claims processing and autonomous network management. I talked about teams and talent. We are equally focused on talent and training our teams with the skills and mindset to thrive in an AI-first world.

Building on these strong foundation and with our continued focus on 5 strategic priorities, we are well positioned for the future. I'd like to now discuss our outlook for the next quarter.

While we are cautious, given the macro environment, our strong order book, healthy pipeline and focus on AI-powered consulting-led solutions give us confidence in delivering long-term value to our clients. Returning to profitable growth remains our priority. Based on our visibility, we are guiding for a sequential growth of minus 1.0% to plus 1.0% in constant currency terms.

With that, let me hand over to Aparna for a detailed view on our financials. Thank you, and over to you, Aparna.

Thank you, Srini. Good evening, ladies and gentlemen. Let me give you a brief update on the financial performance for the quarter ended 30th June 2025, before we move on to the Q&A session.

Our IT Services revenue for quarter 1 sequentially declined by 2% in constant currency terms, which is within our guidance range. On a year-on-year basis, the revenues declined by 2.3% in constant currency terms. Our operating margins for quarter 1 was at 17.3%. This is an expansion of 80 basis points on a year-on-year basis.

As Srini shared, many of our large deal wins are in the nature of cost takeout or vendor consolidation. These deals require upfront investments and come with their fair share of pressures on costs. As always, we will continue to focus on operational excellence in order to offset these pressures. Let me give you some color on the performance of our strategic market units and sectors. All numbers that I will share will be on a constant currency basis.

Americas 1 grew 0.2% sequentially and grew 5.8% on a year-on-year basis. Americas 2, degrew 1.7% sequentially and 2.7% on a year-on-year basis. Europe declined 6.4% sequentially and 11.6% on a year-on-year basis. APMEA has grown 0.6% sequentially and has declined 0.1% on a year-on-year basis.

Moving on to sector performance. BFSI declined 3.8% sequentially and 3.5% year-on-year. Health care grew 0.5% sequentially and 3.5% on a year-on-year basis. Consumer declined 4% sequentially and 5% year-on-year. Technology and Communications grew 0.4% sequentially and declined 0.3% on a year-on-year basis. Energy, Manufacturing and Resources declined 0.7% sequentially and 2.4% on year-on-year. Capco continued to perform well, growing 6.1% on a year-on-year basis.

Let me share with you some of the other key financial parameters. Our net income grew 10.9% year-on-year in Q1. This is after absorbing a onetime restructuring charge of INR 247 crores. Our EPS for the quarter was at INR 3.2, a growth of 10.8% year-on-year. The free cash flow as a percentage of net income continues to be robust and came in at 115% for the quarter. This takes our gross cash, including investments to $6.4 billion.

In Q1, our net income grew 62% on a year-on-year basis. Accounting yield for the average investments held in India was at 8.1% in the quarter. Our effective tax rate was 21.6% for Q1 '26, versus 24.5% in Q1 '25. Our hedges continue to be in line with policy. We had about $2.5 billion of ForEx derivative contracts as hedges at the end of the quarter.

Finally, before I move to guidance, I would like to share with you that our -- in our recently concluded Board meeting, the Board of Directors have declared an interim dividend of INR 5 per share. With this, we have now distributed excess -- we have now distributed cash in excess of $1.3 billion in the last 6 months. As you know, we have revised our capital allocation policy in January to pay out to a minimum of 70% of our net income over a block of 3 years. Going forward, subject to our cash position, the need for strategic investments and Board approval, our endeavor will be to pay dividends twice a year, once along with the June results and then along with the quarter 3 results.

In terms of guidance, to reiterate what was shared by Srini, we expect revenues from our IT Services business segment to be in the range of $2.56 billion to $2.612 billion. This translates to a sequential guidance of minus 1% to a plus 1% in constant currency terms.

With that, I'm going to hand this over to Nisha, and we'll open it up for Q&A.

Thank you, Aparna. We will now open the floor for your questions. For journalists present in the room, please raise your hand for the mic and we will pass it to you. For the journalists outside of Bangalore who have joined us on Teams, please key in your questions and we will accommodate as many as we can. [Operator Instructions]

Beena, do you want to get start -- sorry, Sai, go ahead.

This is Sai Ishwar from Reuters News. So two questions. Srini, so what is the macro outlook? Right now, you said in your speech that you are cautious about the coming quarter, but still the deal wins give you some visibility. But beyond that, has the situation changed from what we see -- what you had seen in the start of Q1?

And one to Aparna. So we see that Americas has grown by 5.8% constant currency. But if you see the sectors, all the sectors are down. So what has powered this Americas 1 performance?

And just one more, if I can squeeze in. So Srini, you have completed 1 year. Congratulations. And I think in corporate parlance, you are eligible for hikes now. So any additional mandate from the Board now since you've completed a year? Or any -- personally also any change in additional goalposts, or additional vision here since you've completed a year?

No. I completed 1 year last quarter. So you're 1 quarter -- a little too late to ask me that question.

Delay in hikes...

First and foremost, I think the most important thing is to stay focused on the clients and continue to deliver on our 5 strategic priorities. So from that perspective, I think we'll continue to stay focused.

Going back to your question on macro environment, I would certainly say that -- I would certainly say that there is uncertainty, okay? So the whole aspect of geopolitics continues, the aspect of tariff continues. And each of the industries and each of the countries have a different situation. But at a broadly from a sector perspective, clearly, like I said, retail, CPG and manufacturing are the 3 industries specifically impacted by that.

But if you look at, like I said, BFSI, right? It's very -- the pipeline is very strong and also deal momentum and wins are also strong for us. The clients are very focused on cost optimization and vendor consolidation. I think that's where we are winning. Having said that, the clients are also spending money on AI data, and that's where we are also staying focused on.

In terms of technology and telecom, clearly, they want to protect their investments, both software and platforms, again, a lot of investments in AI. So net-net, uncertainty continues.

Yes. So your question on Americas 1 growth. We are very pleased with our performance. We've been growing 5.8% year-on-year. If you notice our performance in Americas 1 has been strong all through. Sectors that are doing well within the market unit. Health is doing really well, and that continues to grow for us and is one of the sectors that's actually powering the growth for the market unit.

We had a very good win in communications vertical in Q1 of last year. That continues to grow and build into a very good sector for us within the market unit. Consumer, even though this quarter there is slight softness because of tariff-related impacts, is something that has done really well in terms of the B2C part of technology companies. We kind of categorize them as consumers. So that part of consumer is doing really well, even though there was some softness in retail and CPG.

But overall, if you look at our bookings in retail and CPG this quarter, those bookings have come in really well, right? So 6 of the large deals that we spoke of, 16 large deals are actually in consumer. So we do feel very confident about our performance in Americas 1. I would say that it's very broad-based within the industry verticals that are there within that unit. Yes.

This is Beena from the Economic Times. Srini, you mentioned that most of your deals have been in vendor consolidation and cost take out. Could you give us a sense if discretionary demand is no more the focus? And is this an era of past for most of the companies?

And you mentioned about pressure on costs as well. Do you see that really impacting the margins going forward? And are you seeing a revisit in terms of your pricing overall on deals across the industry? If you could just highlight.

Second, in terms of AI efficiencies, how is that impacting your hiring and head count change? Because this quarter as well, we've seen very minimal changes. And if that is going to continue, and the nonlinearity between revenue and head count change is likely to be the new normal?

And also an addition similar to that, you mentioned yesterday in your AGM that there is a focus on getting high potential talent and moving high performers to critical roles. Could you elaborate a little bit on what is your game plan going forward?

Beena, so discretionary spend is coming back in certain pockets. It's not uniform across. Second, when I said we are focused on data, AI and modernization, that's kind of a discretionary spend because this is something that clients want to experiment on. So if you look at the cost optimization and vendor consolidation, the savings that a client can get actually gets into discretionary spend. So these are the two tracks that we are seeing. As far as we are concerned, this is purely based on the pipeline that we see. So there will continue to be investment on data, AI and modernization in a big way going forward. And of course, there will be projects around cybersecurity and enterprise modernization and so on so forth.

As far as AI efficiency is concerned, I think it continues to evolve, right? For example, I gave -- I said we have built 200 agents that we have put on the hyperscalers. These agents actually address certain tasks, right? So we are building on that. As far as talent that we have, whether it's a software development, or managed services, or building our industry solutions, and our platforms and agents, we need that talent. However, they have to be AI trained. They have to be trained in advanced AI. And that's how I see at this point in time. There is no strong correlation in the industry yet in terms of AI and the hiring aspect of it. I think it will continue to evolve as we move forward.

As far as high performers, you want to talk about it, Saurabh?

I think the philosophy across it. I think Srini, yesterday reiterated it in the AGM. We continue to have people taking up critical roles who are high potential, and we have a bench strength. And we're seeing it across since the last 1.5 years, Srini has come. A lot of critical roles, people have moved up and taken up those roles. So that will be a philosophy for us, and we'll continue to build on it.

So Beena, just to add one more, right? It's also important for our leaders to rotate laterally. And I'm a classic example at Wipro. For the last 3 decades, I've done multiple roles and that gives you a good view of clients and within Wipro and the partnership. So that's going to be evolving, and that's how you build future-ready leadership for Wipro.

AI impact on pricing of deals?

So if you look at a software development life cycle, let's talk about it. It depends upon the tool that you use and the productivity, the tool can get in coding stage, in testing stage and in the deployment stage. So the pricing will actually put those components into it when you are actually going back to the client. So it will be part of the project cost -- end-to-end project costs.

Veena, you'd like to go next?

Yes. Veena Mani from the Times of India. First of all, I wanted to understand -- we keep talking about benefits of AI being passed on to the customer. What kind of benefits are we talking about at this point? And how is it panning out in terms of the projects that you're getting? Are you getting more projects for the same price that you're offering? Or are they asking you to take a discount and keep the scope of work the same?

Aparna, if you could give the margin breakup for the quarter? And then from the talent perspective, AI talent is quite premier, quite niche in the industry still. What I gather from industry is about only 20% to 30% people are really ready to take on AI roles. Is that having an impact on the salaries that you're giving people that you hire for AI? Is there a premium involved here, the same way that happened in the cloud cycle. People with cloud skills got more.

Also, if I look at the fact sheet, there's been a -- if I look at the attrition right from Q1 of FY '24 till now, there's been a steady increase. Now where are we heading? Are we going back to a cycle of high attrition, increasing attrition? And is there a reason for that?

All questions for you.

Should I start?

Yes, go ahead.

So first of all, on attrition, if you look at -- and I look at the last 4 quarters, it's been -- as my colleague and friend, Aparna says narrow band of 1.1, 1.2 so 15 point -- we see, as we move forward, the attrition coming down. That is one. However, we also see that there are pockets where we are seeing higher attrition depending on the skill and the demand for that skill. But from our standpoint, we are very comfortable with this kind of a range of attrition forward. That is one. Because we have good supply and a good bench and there is no challenge in meeting demand.

On the talent and premiumness, I think that's been a norm -- an industry norm for us for the last 3 decades. As new technology comes in, we have always seen this thing happen. We always have a role in building that capability and going external to get that capability. And it's been a mix. It's not that there are a large number of people available in the industry who are deeply trained on AI. That's also a very new area. So obviously, that's a scarcity, and that's why there's a premium. But we are comfortable because we are doing a lot of work in-house to build that talent as well.

So it's a combination and which we have gone through these cycles earlier also, there was ERP, there was data, there was cloud. So it's going on. So same way we are at is today. So on both these accounts, we're fairly comfortable as we move forward.

You had a question on margins, Veena. You were requesting for a breakup I'm assuming you're looking for a margin walk, right, of sort? It's been in narrowband. We reported 17.5% last quarter. We -- in Q1, we delivered 17.3%. So that's a 20 basis points movement.

If you look at ForEx, it's been broadly flattish. Our utilization has been flattish. We've had some savings in SG&A. And we've had the revenue decline being offset through operational improvements. That's broadly how I would characterize the margins for the quarter.

You also had a question on AI and how that's been like impacting deals and pricing. See, like I said, Srini had spoken about how a lot of the deals that we've won are vendor consolidation cost takeout, right? Now these deals will have a fair share of AI, right, in terms of productivity that we bake in and some of those benefits are passed on to the client, right? And therefore, we -- in some sense, it has always been the case with the industry, right? That vendor consolidation deals are very intensely fought and competed. And therefore, it's always likely to be accommodated.

But if you look at the overall portfolio of the deals that you win and the pricing that you get, it's pretty much neutral and say, similar. But this category of deals, there is more pressure, right? And there is a tendency to be a little bit more competitive and for you to take on more than what you can see at the moment, and therefore push yourselves to it. So that's about it. If there's something else that you want to add?

Perfect.

Can we have the next question from Puneet?

Puneet from NDTV profit.

Sorry, missed your name.

Puneet. Just a couple of questions on deal wins has been very strong in an uncertain time as you pointed out. How do you see the movement of these deal wins into your financials? Because we've seen that kind of impact on both revenue as well as margins for the last 2 quarters, and the margins have been a little more stark compared to the previous quarter. So if you can just give some perspective on how do these big deal wins, 16 large deals you quantified into financials?

And the second is largely on guidance. You mentioned for quarter 2, minus 1 to plus 1 percentage point. Does that largely put pressure on the second half to post any kind of positive revenue growth for this year? Because it's something that's been a conversation with Wipro. So how do you tackle that as well going into H2? I know we're still in quarter 1, but how does that happen in H2 for growth in terms of revenue? That's it.

So in terms of deal wins and conversions, some of the deals that we have won have a good balance of both extending the work that we do and there is an element of expansion. Given the nature of these deals, they will take about 6 to 8 quarters for them to just fully ramp up, right? But you will start seeing that trickling down.

And we also had a very large deal win in Q4 of the last fiscal, right, the Phoenix deal win. So this does put us collectively in a better shape. And Srini also characterized that in his speech by saying that the second half is looking far more positive. And we've got the deals that we need. Now it's down to execution.

Your point on guidance for quarter 2. At midpoint, it's flat. We always guide based on the visibility that we have at the start of the quarter. We don't give a full year guidance, but just based on the deal bookings, we've already given you a color that the performance would get better in the second half.

Rishabh, you can go ahead.

Rishabh here from Money Control. So Srini, your large deal wins are at least a 19 quarter high, but the constant currency revenue growth is at 8 quarter low. So is there a delay in conversion? If you could throw more light on that?

Then you have a stated goal that you'll reduce your tail end of your customers. So how is that trend playing out? Because we see that there is a continuous reduction in the number of clients that you have. Are you losing market share there? And are you building LLMs, SLMs for banks because that's gaining traction and momentum?

So Rishabh, let me answer the 1 and 3, and then I'll leave the tail accounts to you, Aparna. On the large deal wins, right, if you recollect in quarter 4, we announced a mega deal, which is from Phoenix, right? And that actually will get started in quarter 3. So some of these large deals do take time for the ramp up.

Similarly, the deals that we have won this quarter, right -- sorry, last quarter, will take some time for it to accelerate. As those deals, we complete the transition, get in to a steady state, it will have an impact on the revenues in a positive way. So I'll leave it there. And I think like you rightly said, very strong deal wins, both a $5 billion overall deal wins and $2.75 billion of large deal wins. I think one of the highest like you rightly said.

Coming to the LLMs and SLMs, I think our strategy for our clients is we have what we call as the Wipro AI platform, and we have WeGA Studio. And the platform is a place where we have the complete guardrails to make sure whatever we build in the context of AI is ethical, is secure, is reliable and responsible. With that, in the context, what we do for our clients is use the LLMs that are there in the market. We don't build LLMs. But we build the SLMs, we build that models, we feed in the data and actually help our clients to accelerate on the AI journey.

So the point on clients, right, number of clients, if you look at the number of clients with more than $50 million of revenues, it's actually expanded from 44 to 47. If you look at our top account, top 5 and top 10, they're all growing. In fact, a substantial portion of the large deal bookings that we have got is actually from our top 10 existing clients. So in fact, we are doing very well. And the fact that we are winning in vendor consolidation should give you -- you should all take heart that it will continue to grow, right?

And we continue to add about 49 clients. The drop that you see is just a result of discretionary spends being weak, which continues to play on it. But I would urge you to look at how our top line performances and that will continue to do well.

Go ahead, Uma.

I'm Uma and I'm from The New Indian Express. How your acquired companies have contributed your growth in Q1? You did speak about Capco, I think, 6%. So how growth would be for these acquired companies in the coming quarters, first?

And second, Aparna, last time, you spoke about headwinds on account of an uncertain macroeconomic environment and that it is putting pressure on your revenues. So are there any signs of change that you're seeing in the second half?

So on acquired entity performance, I think Capco has done well. We have shared that it has grown 6% on a year-on-year basis. If you look at the last 12 months, bookings of Capco, it's very robust. We've had a $1 billion-plus booking. So Capco will continue to grow, and we see good momentum in that business.

In terms of other acquired entities, there's been some softness in how the S/4 SAP programs. There have been some pauses deferral owing to the tariffs, et cetera. But overall, we do think that it should stabilize in the coming quarters, right?

What was your second question? On revenues? I just -- we just spoke about it. A lot of the large deal wins that we have had over the last 6 months gives us confidence, right? And last time when we met, there was macroeconomic uncertainties, and we guided minus 3.5% to minus 1.5%. And we shared that, listen, that's based on the visibility we have and if things were to improve because there were substantial flux in the first 15 days of April. It has improved. And therefore, it's also reflected in the way our quarter 1 performance has been. It's come in between the midpoint and the top end of our guidance range. So there has been some improvement.

Our Q2 guidance also reflects it. And our commentary that the second half will look better also based on our own bookings that we've had.

Avik, would you like to go next?

Avik Das from Business Standard. Srini, a couple of questions. You talked about having a very strong deal momentum in America. So would you be able to give me some breakup in which are some of the specific verticals that you are seeing that growth momentum headed? And you also talked about the European headwinds. What are some of those headwinds? Is it client-specific? Or is it geography-specific? Because some of your peers, of course, have been just having it the other way?

Aparna, also on the questions on margins. 17.3%, it's -- you're closing towards the upper end of your band. Now going ahead, would margins be under pressure? Or would you be able to maintain those numbers? If you can just clarify.

And Saurabh, I also wanted to know that attrition has been going up in the industry over the last 12 months. So what are some of the specific reasons for that? It's not company-specific. It's industry -- happening across the industry, so I wanted to get your views. And again, I'll repeat the question that I also asked in April, are the hikes happening in October? And if that is so, Aparna, would margins again be a little bit constrained in the second?

We should start with Saurabh and then me and then Srini.

On the hikes, we haven't decided. It's too early. The macro environment, the current demand supply, all this will play in factors. I did not speak what are we seeing with in the industry right now. But closer date, we'll take a call and communicate. So I think that's where we are on the margin front.

On the attrition, if you look at it and twice, it's come up, let me call out the numbers. It's been the last 3 quarters, if you look at 15%, 15%, 15.1%. So it's not that it is something majorly -- yes, but it's been a flattish kind of a thing. There are pockets, as I said, there are skills which are in demand. There is GCC hiring, which is in demand. There are some start-up hiring, there's demand. So there are different pockets where we're seeing things that are happening. And ultimately, it's people with the right skill and expertise who are going on. So I think that's where we are.

But we are doing everything. If you look at from a people's standpoint, we are going to our campuses and hiring. We are hiring across the globe, depending on demand which is coming. And in a tough environment, we continue to be flattish on the head count. So I don't see that as a challenge at all. From a supply side to manage the demand coming forward.

So do you want to take?

No, you go ahead.

So Avik, on the deal momentum, right, if you look at our pipeline right now, it's very strong. We have a very strong pipeline in Americas. We have a very strong pipeline in Europe. We do have a strong pipeline in APMEA, right? And if we look at -- from a sectors perspective, like I said in my remarks as well, BFSI is strong and steady. If you look at telecom and communications the deals momentum continues for us, right? If you look at the EMR, manufacturing is soft at this point in time. If you look at consumer, while the revenue has not been good for us in this quarter, but Aparna alluded to the fact that we have won deals in that sector, which is specifically around B2C, and we see a momentum.

Health care continues to be -- continues to create that momentum. All I can tell you is that in spite of booking $5 billion pipeline is still strong, and it continues to be. And we're being very proactive with our clients in these conversations, and we'll continue to do so. And the pipeline, again, discretionary spend in the pockets, but it's around data, AI modernization to be very specific. Cost optimization, vendor consolidation continues, and we have made a good momentum on that.

And the third one, which is also very important is the industry solutions that we are building, which are consulting and AI powered, whether it's a wealth management or payers and so on and so forth, momentum continues. In fact, in health care, we had good momentum on those solutions as well. So net-net, it's overall positive as far as the deal wins and deal pipeline is concerned.

So we're very excited about the $5 billion bookings. And one of the priority or focus areas for us is going to be conversion, right? These large deals will need certain upfront investments for us to be able to convert them and that's going to be #1 priority for us. So in some sense, there are going to be pressures on our margins as we look at it, but we are very excited about the potential of growth that these deals bring with them.

We have been happy with our performance on margins. Over the last 8 quarters, we have consistently improved. And we will continue with the same rigor for us to be able to offset these pressures. But that's how I characterize, and we don't guide for margins.

Sorry, Avik, could we come back to your question. Let's take Sanjana's, since we're running out of time, I'd like to.

Sanjana from Businessline. Many top U.S. banks have commented that -- they've reaffirmed activities and digitization efforts. But I think there has still been some softness in this vertical for you. Any idea when there will be a recovery?

And also, I think there's been a lot of discussion about macroeconomic uncertainties persisting. Any idea when this simmer down? Will this continue for the remainder of this fiscal?

And Aparna, you mentioned that performance in H2 will be better. Is this despite the usual seasonalities and the furloughs? And coming back to the first question, do you think that discretionary spending picking up will be on the back of BFSI growth? That's it.

So Sanjana, as far as the macroeconomics are concerned, I'm very certain that there is uncertainty. So beyond that, I don't think I can comment on that. And I think you know it, I'm sure you're reading all the reports that's coming in. So we will continue with that. But I think the clients are getting to be resilient in the context of uncertainty. I think that's very important.

So the fact that you asked about BFSI very specifically. So if you look at one of the leading indicators for us is Capco. Like Aparna talked about it, we grew 6% year-on-year in a very uncertain environment, especially in the BFSI segment. Second, if you look at the deal wins, we won two mega deals in this quarter, in BFS segment. So that also tells the story, right?

As far as the investments like the BFSI clients, while there are uncertainties in the environment, the technology investment continues, right? What they want to do is bring in better experience, bring in velocity and, of course, productivity into their business operations. And that is a journey I think they will continue to do at this point in time.

We'll ask Ayanti, and then we'll come back to you. Ayanti, do you want to go ahead?

Ayanti from Financial Express. I have a question for Saurabh.

We can't hear you.

Little bit louder please.

Can you hold the mic a little bit closer?

Can you hear me now?

Yes, yes.

Much better.

Ayanti from Financial Express. I have a question on what is the increasing DOP percentage sequentially signify? Like how do I read into that? And also, does your hiring outlook for FY '26 is on track? I think it was around 10,000 to 12,000.

Attrition of DOP.

Attrition. Sure. Nothing -- so it's more seasonal and more account-specific quarterly, so there's nothing to see much more in the DOP numbers that you are seeing. But overall, our hiring, as I said, is very, very demand specific. Today, we have a good bench. Our utilization, while for the quarter has gone up for a year-on-year basis, it's come down. So we have head space to become better. We are gearing ourselves for the bookings which we have done and to deploy people and get revenues there. And basis the demand environment and the macro environment we will continue to hire.

We continue to go on campuses. Numbers are small. We are still entering to -- after a 10,000 people addition last fiscal, we went this quarter as well, and we'll continue to do so every quarter going forward. So it will be very demand-specific from a hiring standpoint. And just to again come back on the attrition, there's nothing which is unique about DOP. It's just a quarter issue.

Narayankar sir?

I'm Narayankar from United News of India. I have a couple of questions. This operating margins expanded 80 bps year-on-year despite revenue decline. What specific levers helped preserve profitability?

And Wipro reported a strong operating cash flow of 123.2% of net income. Can we expect this trend to continue through FY '26?

And my last question, if you can allow me. Wipro returned over $1.3 billion to shareholders in the last 6 months, and how do you balance aggressive capital returns with ongoing investments in AI and innovation?

All for you, Aparna.

Thank you. So your question on how we've improved operating margins in a weak revenue environment. It's largely owing to the operational excellence that we've been driving. If you look at it, we have been driving improved productivity in our fixed price programs. We've improved profitability in our acquired entities. We continue to remain focused on optimizing overheads, including parts of G&A that we think we can rationalize. We have been aggressively pursuing some of that.

There is also an element of ForEx that's also there with the rupee depreciating against the dollar, that always helps in the margin performance. I think all of that has played out into our operating margins, and we will continue to -- those levers, we will continue to flex, especially on fixed price programs, led by improved productivity now especially with the focus on AI.

As far as your second question is concerned on operating cash flows, we've been very pleased with our performance. Over the last 2 years, we've actually delivered a free cash flow as a percentage of net income, far superior. I think it was around 140% plus a couple of years back, last year was 120% of net income. So this quarter, again, 115% of our net income has got converted to cash. This is again on the back of better working capital management that we've been driving. And how do we look at it from a go-forward standpoint? Our endeavor would be to at least convert whatever we deliver us profits into cash. That is the minimum as a standard that we would look at. And if we can continue to do better, we will. So that's the way we look at it.

On $1.3 billion of capital allocation. We've just announced it, INR 5. It's not yet paid out. So once we pay that out, it will become $1.3 billion of cash back to shareholders. It is not aggressive in some sense, 70% of the net income cumulatively over 3 years. That gives us substantial flexibility for us to meet that capital allocation, and we're very comfortable with it. And like I shared with you, we have $6.2 billion of gross cash on the balance sheet enough for all organic and inorganic investments that we would like to pursue.

We have time for one last question. Bala, please go ahead.

Bala from Analytics India Magazine. I just wanted to understand if we're looking at any deeper partnerships with -- if you're looking at any deeper partnerships with OpenAI and the likes. And if you are planning to -- planning any acquisitions to better your AI solutions?

The second one is, is there any specific targets to hire freshers for the year?

Sure. For us, M&A and partnership is strategic. As far as M&A is concerned, we look for opportunities that can give us capabilities -- new capabilities that can give us access to new markets that gives access to clients. So that's something that we constantly look for, and if it is something that's the right fit for Wipro. I think we'll go ahead for that. And that's a path, and that's a journey that we'll continue to be in.

As far as the partnership is concerned, right, I don't want to call out one single name but partnership is very, very critical. And that's why we called out Wipro Innovation Network. As part of that, we've got the Partners Lab, Academia, Wipro Ventures and our own labs coming together to solve problems for our clients. And we also called out the fields of innovation that we're going to focus on. Be it robotics, be it Agentic AI, be it quantum, with cyber resilience, be it blockchain, right? Those are the areas that we're working on. This is very important for the clients.

For example, if you're doing a drug research combination of quantum and AI, we'll accelerate the whole drug discovery process, just to give you an example. So we'll continue to invest in that.

And on freshers, we had called out our endeavor is to look at about 10,000 pressures inducted in the fiscal. We'll see how it pans out quarter-on-quarter, and we'll keep you posted.

We will have to conclude our Q1 FY '26 earnings press conference. For all follow-up questions, please reach out to the media relations team, and we'll be happy to help you. Thank you, and we will see you next quarter.

Hello, everyone. I'm Rishad Premji, Chairman of Wipro Limited. On behalf of our Board of Directors, I welcome all of you to our 79th Annual General Meeting. This meeting is being conducted through video conference as per the circulars issued by the Ministry of Corporate Affairs and SEBI. Since the necessary quorum is present via video conferencing, this meeting is officially constituted. I now declare this meeting open.

Before we get into the proceedings of this meeting, let me take a moment and introduce you to the people who are present here today. To my right is Mr. Azim Premji, Founder Chairman; Mr. Deepak Satwalekar, Independent Director; Mr. Patrick Dupuis, Independent Director; Ms. Tulsi Naidu, Independent Director; Dr. Patrick Ennis, Independent Director. And to my left are Mr. Srini Pallia, Chief Executive Officer and Managing Director; Ms. Aparna Iyer, Chief Financial Officer; Mr. N. S. Kannan, Independent Director; Ms. Paivi Rekonen, Independent Director; and Mr. Sanaulla Khan, Company Secretary. In addition, Mr. Anand Subramanian, Partner, Deloitte, Statutory Auditor; and Mr. V. Sreedharan and Mr. Pradeep Kulkarni from V. Sreedharan & Associates, who are secretarial auditors have also joined us today. I now request Sanaulla Khan, Company Secretary, to read out the arrangements made for the members at the 79th Annual General Meeting.

Thank you, Rishad. Good morning, once again, shareholders, and welcome to the 79th Annual General Meeting of Wipro Limited. The company has enabled the members to participate at the 79th AGM through the video conferencing facility. The proceedings of this Annual General Meeting are also being webcasted live for all the members as per the details provided in the notice to the Annual General Meeting. 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 with the facility to exercise their right to vote by electronic means, both through remote e-voting facility and e-voting at the Annual General Meeting. The remote e-voting facility was made available to all members holding shares as on the cutoff date of July 9, 2025. During the period commencing from 9:00 a.m. IST on Saturday to July 12, 2025, till 5:00 p.m. IST on Tuesday, July 15, 2025. The remote e-voting has been blocked on July 15, 2025, at 5:00 p.m. Indian Standard Time.

The members joining this meeting through video conference who have not already cast their vote by means of remote e-voting may vote through InstaPoll e-voting facility provided at this meeting. The members who have cast their vote by remote e-voting prior to the Annual General Meeting 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 this meeting. Based on the report 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 requirements under the SEBI listing regulations. The register of Directors shareholding, register of contracts, copies of audited financial statements, et cetera, are available for inspection to the members. Members seeking to inspect such documents can send an e-mail to [email protected]. I repeat [email protected].

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

Thanks, 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 '24-'25 and the general outlook for the IT sector. Once again, thank you for joining us today. It's great to see so many of you online.

Financial year '25 was a year of significant change for Wipro and for the world. As Srini took over as our CEO and Managing Director, we entered a fast-moving, unpredictable environment. The macro landscape kept shifting and technologies like AI were scaling rapidly. AI, especially generative and agentic AI is becoming a game changer. It's helping us rethink how we work, uncover new growth opportunities and deliver great value to our clients. Through all of this, we've stayed focused on our clients. We've executed with discipline and made bold investments to prepare for what's next. These choices are shaping and will shape Wipro's next chapter.

In financial year '25, we reported $10.5 billion of revenue, which was a 2.3% decrease year-on-year in constant currency. Net income stood at INR 131.4 billion, showing strong growth of 18.9% year-on-year. Our IT services operating margin was 17.1%, an improvement of 0.9% over financial year '24. Earnings per share came in at INR 12.6 per share, up 20.3% from last year. Our operating cash flow was close to $2 billion at 128% of net income.

Starting from financial year '26, we expect to return to shareholders at least 70% of the net income cumulatively over a 3-year period. A one-to-one bonus issue in quarter 2 and an interim dividend of INR 6 per share in quarter 3 highlight our strong commitment to returning value to our shareholders.

This December, Wipro turns 80, a milestone that's rare in any industry. For nearly 50 years, we've been in the technology business, navigating disruption through continuous innovation, strong client trust and a long-term mindset. Our innovation strategy today is driven by what we call the Wipro Innovation Network. This global ecosystem brings together our innovation labs, Wipro Ventures, which is our start-up ecosystem, partner labs, cloud studios and the Topcoder community, all working as one. It allows us to co-create faster and deliver next-generation solutions at scale in collaboration with our customers.

Wipro Ventures, which celebrated its 10-year anniversary this February, has played a big role in this journey. Launched in 2015, it was designed to connect our enterprise clients with the global start-up ecosystem. Today, with a $500 million commitment, it supports early to mid-stage companies that are building cutting-edge enterprise software, many focused on AI and on automation. We help these start-ups scale, bring their ideas to market, and deliver real strategic value for our clients.

Another key focus of the company is inclusion, and it is core to how we hire and grow. Today, 37% of our workforce is women and 37% are Gen Z. We continue to build a diverse, multigenerational workplace that values gender, ethnicity, orientation, ability and more. We were honored to be recognized as a DEI Lighthouse by the World Economic Forum in 2025.

We continue to sharpen our focus on becoming a consulting-led AI-powered organization. Our acquisition of Capco a few years ago gave us a strong start in financial services consulting. Since then, we've been expanding and strengthening across other industries.

AI is now at the heart of how we work and how we move. It helps us move faster, improve quality, boost productivity and deliver better experiences, all focused on working at scale. As we move from being AI augmented -- from AI augmented operations to truly autonomous systems, Agentic AI is opening up the next frontier. Intelligent agents are becoming -- are beginning to act independently, driving outcomes at scale. We've already built over 200 agents in partnership with our hyperscalers. Together, we're helping our clients reimagine business models, unlocking greater efficiency and driving new growth.

Agentic AI is also making a tangible impact across Wipro's internal operations, from HR and finance to legal and beyond. As an example, our medical claims solution now processes over 10,000 employee claims every month, entirely touchless. This automation boosts both speed and service quality, setting a new benchmark for internal efficiency.

Supporting all of this, we're building an AI-first workforce. Almost all our employees, starting with me, have completed foundational Gen AI training. Over 87,000 have gone through advanced role-specific upskilling. This includes teams in HR, sales, finance and in delivery functions. Through our talent at scale program, we've partnered with leading academic institutions to set up 63 centers of excellence, providing training in high-demand skills. All these efforts show our deep commitment to long-term value creation and building stronger client relationships.

We're also deeply committed to creating an inclusive, supportive workplace where everyone feels they belong. This year, in particular, we have put even more focus on employee well-being and self-care, helping people thrive both personally and professionally. Our approach is flexible and thoughtful, meeting people where they are in their journey. We know well-being isn't a one size fits all, so we've built a framework that offers tailored support, which covers physical health, mental well-being and work-life balance. Our goal is to make sure every associate feels empowered, supported, valued and equipped to do their best.

Our commitment to sustainability and social responsibility also stayed strong in financial year '25. We're ahead of schedule on our climate change program that we committed a few years ago. Today, 84% of the electricity used in our facilities comes from renewable sources, and we're on track to close the remaining gap by financial year '27. We maintained 31% water reuse in line with our targets. We also advanced our work in education and health care, improving access and quality of education for 2.7 million children and enhancing primary health care for 700,000 women and 1.3 million children. Over 15,000 of our colleagues at Wipro gave more than 30,000 hours to community initiatives last year.

Looking ahead, we know the external environment may stay uncertain, but resilient businesses are built at times like these. We've used this time to invest in our people, deepen our client relationships and stay grounded in our purpose. Wipro's 80-year journey has never been about short-term wins. It's been about long-term stewardship, constant reinvention and doing business the right way. We will carry that same spirit forward with clarity, humility and determination. To our clients, our employees and to you, our shareholders, thank you.

Before we start the proceedings, I want to invite Srini Pallia, our CEO and Managing Director, for a few opening comments. Srini, over to you.

Thank you, Rishad. Good morning, everyone. I'm happy here -- to be here with you today. As many of you know, I completed my first year as CEO this April. Having been part of Wipro for over 3 decades, I have always had a deep connection with the company, yet this past year has given me a renewed appreciation for Wipro and the incredible contributions of our passionate employees. Upon reflection, I am proud of the progress we have made in many important areas. There were certainly challenges and areas where we could have done better.

In 2024/'25, the global business environment stayed uncertain all year. In the fourth quarter, uncertainty deepened with new headwinds regarding the direction and quantum of tariffs. Business sentiment took a significant hit, especially in the consumer and manufacturing sectors. Some of the clients prefer to recalibrate their transformation programs in the wake of this uncertainty, yet the demand for technology-led reinvention remains strong. Clients wanted AI-powered solutions that delivered velocity, experience and sustained business value. We, at Wipro, enable this shift for our clients and continue to serve as a trusted transformation partner.

For FY '25, our IT Services revenue was $10.5 billion. This reflects a 2.3% decline in constant currency. Even in this challenging environment, we delivered growth in key areas. Americas, our largest region, grew 1.2% year-on-year. Capco posted a 6.6% increase year-on-year. We expanded our operating margin to 17.1% driven by operational discipline and excellence, and we continued to invest in our future.

We strengthened the Wipro Innovation Network and advanced our AI and consulting capabilities. We continue to build differentiated talent at scale. We aligned our global business lines to reflect client buying patterns.

Our focus remains clear, to execute against 5 strategic priorities. As part of that, we deepened relationships in our core markets and priority sectors. The large account strategy gained momentum with steady growth in our top 5 and top 10 accounts. We drove impact through consulting-led AI-powered solutions. Our teams now engage early in our clients' transformation journeys, helping define road maps, identify AI opportunities and align with the business goals from the start. In fact, this shift allows us to lead with insight and not just execution alone.

We closed 63 large deals worth $5.4 billion, a 17.5% increase year-on-year. We also won 2 mega deals. These wins reinforced our ability to deliver at scale and lead complex transformations. In fact, AI is now at the center of every one of these engagements. It enables greater productivity, efficiency and smarter experiences for our clients.

Our renewed focus on client centricity contributed to improved customer satisfaction and better Net Promoter Scores. We also invested heavily in talent and leadership development. Through the Wipro Leadership Institute, we are developing high potential talent, moving top performers into critical roles, and we launched a sponsorship program to help in their growth journey.

With AI first and AI and everything as a guiding approach, we are driving transformation across a few dimensions. First, we are changing the game for our clients with AI. We are building innovative AI-based industry and cross-industry solutions tailored to address specific business challenges. Second, we are infusing AI and delivering better for clients. By integrating AI across the software development life cycle, we are accelerating development, improving code quality and reducing defects. Third, we are operating better as a company with AI. With ourselves as client 0, we are building and testing AI solutions internally to drive both efficiency and experience.

We continue to invest in building AI talent and platforms. Today, Wipro AI platform and WeGA Studio help us to curate data, build and train models within our responsible AI guardrails. Through AI academies and personalized learning pathways, we are building future-ready AI capabilities and skills at Wipro. We also sharpened our strategic focus through targeted M&A. During the year, we acquired U.S.-based applied value technologies to enhance our application services and also unlock new growth opportunities.

As we continue to transform, the spirit of Wipro remains our anchor. It reflects our identity built on integrity, inclusivity and a commitment to doing what's right. We deepened our focus on inclusion and belonging. We are building a workplace where everyone can grow and lead. These efforts are central to who we are and how we create long-term value.

Finally, as we enter FY '26, our focus is clear. We aim to drive consistent profitable growth. We will scale our consulting-led AI power transformation engine. And we will keep investing in our people, leadership and culture. This is the Wipro we are building, more agile, more relevant, and more focused on outcomes that matter.

Thank you to our shareholders, our clients and Wiproites for your trust and belief. As we near our 80th year, we move forward with clarity, confidence and purpose. Thank you. Over to you, Rishad.

Thanks. Thanks, Srini. The notice of the 79th Annual General Meeting and the annual report containing audited financial statements, including consolidated financial statements for the year ended March 31, 2025, and the Board's and Auditors' reports have been sent by electronic mode to those members whose e-mail addresses are registered with the company or depositories. These documents have also been made available on our company website. Considering the above, the notice is taken as being read.

Deloitte, our statutory auditors, have submitted their report for the financial statements for the year ended March 31, 2025. The auditors' report does not contain any qualifications, modified opinion or adverse remarks. There being no qualifications, the entire report is not required to be read in this meeting, and the auditors' report is being taken as being read.

In terms of the Notice of the 79th Annual General Meeting, the following items of business are to be considered for this meeting: one, to receive, consider and adopt the audited financial statements for the company, including consolidated financial statements for the financial year ended March 31, 2025, together with the report of the Board of Directors and Auditor's report.

Two, confirm the interim dividend of INR 6 per equity share declared by the Board of Directors on January 17, 2025, as the final dividend for the financial year 2024/'25.

Three, to consider appointment of a director in place of Mr. Srini Pallia, who retires by rotation and being eligible offers himself up for reappointment.

Four, to appoint V. Sreedharan & Associates, practicing company secretaries, as secretarial auditors of the company.

We will now be glad to answer any questions which any member may like to ask on the financial statements or on other matters. The InstaPoll e-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 this meeting. We will commence the Q&A session briefly.

[Presentation]

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

Thank you, Rishad. In order to ensure a very smooth interaction and participation, I request all the shareholders to note the following guidelines for the Q&A session. We have about 20 shareholders registered as speaker shareholders and we will take them in the batches of 5. The Q&A session will be anchored by me, and I will call the preregistered speakers to ask their queries or clarifications one by one. I will invite the speakers 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 requested to restrict their questions to 2 minutes so that all speakers can get an opportunity to share their views. In the interest of time, I request members not to repeat the questions raised by the previous speakers. It may also be noted that the company reserves the right to limit the number of members asking questions depending on the availability of time at this Annual General Meeting.

I now request the first set of speaker shareholders to come online and start asking their questions.

Our first shareholder today is Prakashini Shenoy, and I request Prakashini Shenoy to ask her question. Can we have Prakashini Shenoy, please?

Sir, I'm Prakashini Ganesha Shenoy from Bombay. Chairman, since we are meeting for the first time during the year, I wish one and all happy, healthy, wealthy and prosperous 2025. Respected honorable Chairman, the dignitaries of the board, and my fellow shareholders, good morning to all of you.

I received the AGM report well in time, which is colorful, informative, transparent and contains all the information set for the corporate governance. I thank Ms. Niharika, Mr. Khan and Mr. Rajat for the same. Without which, I would be in a position to speak. Thank you all 3 of you. The Chairman and the CEO has given a beautiful picture regarding the company and its working in all parameters. Thank you, Chairman, sir, and CEO, sir.

At the outset, we thank you to the board for recommending dividend for the financial year '24/'25. I'm also glad to note that the company has done outstanding work in the field of CSR activities. Congratulations for various sports which the company received. This shows the sincerity and hard work one and an all stuff.

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 views.

Sir, now my questions. My first question is, what is the performance of our various applications and our market share? Next question is, highlight the future road map for growth and risk in the business due to global situation. My next question is, [ future parent ] company, [indiscernible] planning for Digital India? When are we going to plan to increase revenue? And my last question is, what is the strength of the company and the percentage of women working?

I wish Srini good luck for the bright future and [ wish all ] that the profit of the company shall reach the peak in due course. Chairman sir, I strongly and wholeheartedly support all the resolutions put forth in today's meeting. Thank you, Chairman, sir.

Thank you. I now request the next shareholder, Ms. Sujata to come online and ask her question, please.

Good morning to all of you. This is Sujatha from Bangalore. I'm a Charted Accountant. I have noted down a few questions. First and foremost is that, I congratulate the Board for maintaining the quorum and the way how it has been conducted. But my humble request is that considering the size of the organization, if you look at the number of today, hardly 25 to 30 people have attended because of online. So being a pioneer, being a reputed company, why can't you consider arranging for a physical AGM? Because when we connect with the board, when we connect with the members, when we connect with the stakeholders, it makes a lot of difference. Because as a prudent investor, I expect my company to do well. At the same time, I also want to contribute something. So probably can consider it as a request, right?

So number 2, with respect to the financials, I understand we all adapt technology and everything is going fine, but still, I could get the hard copy only yesterday. So I'm very sorry about it. Probably you can consider rectifying it in the following AGMs.

So I just want to know, as with respect to the Trump's tariffs, what is the company's future vision or how is it going to tackle? Will it have any impact for the industrial support as well as the company in particular?

My question #3 is that, yes, I fully appreciate there are -- 33% is the women workforce as mentioned by the Chairman. But if you look at the Board as such, there are very few women directors, probably the norm requests, which is governed by the company set, but still, considering the capability and the other general workforce in place, you have to consider expanding the workforce even in the Board. It is just not limited to the -- what is stipulated in the act.

So -- and fourth question, what I want to understand is, with respect to the contingent liability, what is the position of GST liability? If you can throw some light on that, it would be great too. Thank you so much.

Thank you. Can we have the next shareholder, Mr. Gundluru Reddappa, please.

First of all, Founder Chairman, Azim Premji, sir; Rishad, sir; our 1 year successfully completed, Srinivas Pallia, sir; and Aparna, all other independent directors, scrutineer, auditors, Company Secretary, Sanaulla, good morning.

Myself, Reddappa Gundluru, I'm attending this AGM from Hyderabad. As a shareholder of Wipro Limited, I'm very happy and proud because my company creating the wealth to the stakeholders continuously. Founder Chairman, sir, we have very good memorable primitive and physical AGMs '18, '19. Really, we learned so many things how to behave society. Such a wonderful person we met you. We have very good memory. So thank you so much, sir. God will bless you abundantly with health and wealth.

Rishad, sir, your speech is very wonderful, amazing and informative, sir, thank you so much.

Srinivas, sir, you have given detailed information. Very good information, SP, covered all the things, sir. Such a nice information given to us. I felt very happy, sir.

Sir, governance is very wonderful. Transparency with the highest standards. [Foreign Language]. Our Founder Chairman, Azim, amazing person, the same person, the same way, transparency maintaining under leadership of our Chairman, Rishad, keep it up.

A special kudos to all the KMPs, the annual report preparation. Wonderful annual report, sir. Colorful. The cover page to last page, numbers are speaking, quotas are speaking, detailed information as the statutory compliance. Keep it up, sir.

And CSR, is a tremendous CSR. No need to ask the CSR question in the Wipro. We know the heart of our Azim, sir. Keep it up, sir. Thank you.

Sir, financially, I would like to thank once again the entire Board of Directors. Every year, something -- you return as a gift to the stakeholders. The bonus 1:1, dividend INR 6. Thank you so much for wonderful gift to us. Thank you.

Congratulations for the acquisitions. Congratulations to the many more awards you won.

Here are my question. Under our [ Powerpay ] there is some helping plants filled with AI-powered future-ready [indiscernible]. Thank you.

Here, I have some -- few questions. About the financial performance. Can you please provide more details on the -- it was revenue growth strategy and how we plan to sustain it? And how we see gross profit margins in the next 2 quarters, quarter-on-quarter?

Another question, sir. What is our headwinds? Nowadays, geopolitical issues going on, competitions going on. So [ despite of our ] headwinds we're facing, Mr. Srini sir, can you please provide information? There's another -- my concern is, what is the geopolitical impact on our revenue? And what is the outlook for financial '26? What is your vision? I would like to know, sir.

And business strategy, what is our company plans to expand in existing or new markets, particularly in the IT services and digital transformation? And how do you plan to address in this competition maintained to market share in the -- now with this IT service industry?

These are my view, sir. I don't have any financial questions, sir. Thank you so much for Company Secretary for giving this wonderful -- the annual report, link, and also -- thank you, Rajath, sir, [ Roli Agrawal ji ], and the Honey madam, Niharika, etcetera, they are always reachable sir.

Sir, e-voting has been done. There are no questions on the e-voting -- resolution, sir. I wish the good health to you, happiness to you, wisdom to you, entire Board of Directors, a hard-working family, sir.

Sanaulla, sir, I called so many times. You're not responding us, sir. What is this, sir? So many times call you. Text message given you. Everything is going on. You were also a good person, but please respond to the -- any emergency about my company performance and any other issues I will call you, sir. Not -- I will call never personally, but I call only the information about the annual report and all. Please respond to the shareholders.

Can we have the next shareholder, please? Mr. Kaushik Sahukar.

We can't hear you. We will come back to him, Sana.

Yes. Can we have the next shareholder, Mr. Atanu Saha?

Good morning to respected Chairman, esteemed directors and key management personnel. At the outset, one of the best corporate leader, Mr. Azim Premji, is in good head. We really pray for your health, sir. It's immense pleasure to interact with you once again this year. I'm also deeply grateful to our Company Secretary, Mr. Sanaulla Khan for granting with this opportunity.

Coming to the agenda of the meeting, I would like to seek only one clarification. With Board announcing our weak revenue forecast for June quarter, sequential decline of 1.5% to 3.5% range, and concerns around pricing pressure during renewals while simultaneously investing heavily in GenAI initiative. How does the company plan to manage near-term top line stability with long-term AI-led transformation without compromising margin of client renewal rates.

Before concluding, I would like to share a thought in my view, reflect personality and potential of our company. The cloud AI plans are like a rocket. We flow AI plant are like the rocket. But if the fuel, that is revenue, falls short instead of breaking them more, it may land in a [indiscernible] of client losses. Wipro AI plan [Foreign Language].

I am personally committed to putting them a best effort, but with the organization support the journey becomes even more meaningful. And in that spirit, I am once again request a kind consideration, Mr. Rishad and association in the area of certification audit, including Form 15CB. I sincerely hope the management will extend us meaningful opportunity that [indiscernible] professional resilient, and not nearly offer verbal assurances followed by prolonged silence. I request to break your silence this time, sir. I'm surprised world's top company like Wipro...

Thank you Mr. Sahukar. In the interest of time, we have many more shareholders to speak. Thank you for your question. We will answer that. Can we have the next shareholder, please? Mr. Atanu Saha.

Sir, please ask your question, please. Please ask your question.

[indiscernible] these many employees working as a specialized and [indiscernible] which was that you already read from [indiscernible]. And do you have any -- do you have to think about the [ deep work out ]. And this is a question which and already have -- what the Chairman speak really, and thanks to our -- this is only 1 question. And a matter of time, [indiscernible] the sustainable goods, INR 17 crores, they already -- Page #5, management and opportunity. So how do we maintain [indiscernible], that is very important for everybody. Thank you very much. I already casted my vote. I do forwarding to our moderator. Thank you very much.

Thank you. So we have finished the first set of 5.

So there are a bunch of different questions. One is on our strategy, which I will let Srini answer at the end. There were a couple of questions on the percentage of women in the organization. As I mentioned in my speech, 37% of the company is women, over 19% of our leadership, which is our top 800 people, women, that number has gone up 2.5x over the last 4 to 5 years.

I also hear the comment on more women on our Board. Just to provide clarity today. Of the 6 independent directors that we have, 2 of them are women, so 33% of our independent directors are women, but 2 out of 9, which is a little over 20% of the overall Board is women, but we will keep that point in consideration.

There was also a comment on doing this AGM physically as opposed to virtually. One of the reasons why we have stuck with the virtual medium as we've just felt, this gives more of an opportunity for more people to participate, but we will certainly keep that request in mind.

There was a specific question on contingent liability on GST, which I'll let Aparna answer in a second.

So the only other comment that I will make is certainly, the environment, and Srini alluded this as well, remains uncertain. There is uncertainty on a bunch of different fronts. Certainly, the uncertainty with tariffs, this uncertainty in the geopolitical context, and what we find is customers more and more are getting more acclimatized to living in a world that is more uncertain. And so while their focus has stifled on discretionary spending and focused more on cost consolidation and vendor consolidation, we find the emergence, at least in some industries, of short-term thinking on discretionary coming back in pockets, but the environment certainly remains uncertain. It has not gotten any worse but not gotten significantly better at the moment.

With that, I'll hand it over to Srini, just maybe to comment on our strategy, and he alluded to that in his speech as well, but maybe he can provide more visibility on that.

Thank you, Rishad. I think Rishad talked about the uncertainty that's going on, the geopolitics that's going on. I'd also like to bring in one big technology shift that's going on in the world, which is AI, agentic AI. So what we have done is -- there are 2 parts to that. From a technology perspective, we talked about the Wipro Innovation Center, where we are actually focused on 5 fields of innovation, which is around agentic AI, quantum, robotics, cyber resilience and blockchain. These are the emerging new technologies where we are actually collaborating with academia, with our partner labs, and with our own client labs, building solutions for the future, which is going to be a lot more resilient and in touch with the technology shifts that are happening. So that's one part of our strategy.

The second part of our strategy, what we called as 5 strategic priorities, which is looking at the future and working backwards in terms of what we need to do. So there, we have a clear-cut game plan, number one. We said we're going to go after the focused markets and priority sectors. So we clearly called out what those countries are, what those regions are where Wipro wants to double down. We also picked up 5 sectors across the globe where we won't really invest deep in consulting and also bring in a lot more technology transformation for the clients to impact their business transformation, be it banking financial services, energy manufacturing resources, consumer, technology and telecom and health care. These are the 5 industry sectors we pick globally. And country by country, we have a specific sector strategy.

Second, we said, within these markets that we have defined, we are going to prioritize and build large client relationships where we are going to be more proactive, work with our partners, bringing the best and also make sure we understand the disruptions that the clients are going through and we can actually help with them and be ahead of the curve.

Third, we called out what we call as industry and cross-industry solutions, which are consulting-led and AI powered. These are actually AI native solutions that we are going to build around. We have solutions around wealth management, network management, health care, which is around payers and so on and so forth. These are our solutions working with our partners, bringing the right technology for that particular business process.

We're also building a talented scale. I did talk about it, right? This is also what is very important for us as the technology shift is creating the right mindset, the right skill set and the right tools that are required for us to be ahead of the curve and help our clients.

And last but not the least, client centricity. We are focused on that, thereby helping improve our customer satisfaction and Net Promoter Score.

And in terms of, I think there was a very specific question on AI, how are we doing that? If you were to imagine 3 tracks, there's 1 track, which is an entire software development life cycle or the product life cycle. We are bringing in third-party tools and our own AI platform, our own studios to help accelerate the project and program development, make it a lot more efficient, bringing the velocity, experience and efficiency.

Second, we work with a lot of clients and run and operate across applications, infrastructure as well as BPO, which are all managed services. We are focused on infusing AI so that we can actually bring a better experience in addition to efficiency for our customers. And we are also building the solutions that I talked about, which is changing the game. With this, we are future ready and we are abreast of the technologies, and we will continue to invest in our people and what's coming ahead of us. Back to you, Rishad.

So there was also one -- you want to answer the GST? There's also a question on part-time workers. Maybe you can just share the number of subcontractors that we have, Aparna.

So on the contingent liability, so I wanted to tell you that these are liabilities that we have in the normal course of business. These are -- if you look at the size of it, it's very -- it's not material considering our size of operations, and we are taking all legal course that is there available within the law, and we feel quite confident about defending them. Those are the points that I want to make.

And subcontractor -- number of subcontractors that we have continues to be in line with the operations. We've got about 9.5% of our workforce, which is subcontractors that we continue to use of our total workflow.

So we will now move on to the second set of 5 shareholders. I once again request the shareholders to be brief so that all the shareholders will get an opportunity to speak.

In the second set, the first name that we have is Hutokshi Sam Patel. Can we have the shareholder online, please? Please go ahead. If we are not able to get this shareholder, can we have the next shareholder, Celestine Elizabeth. Can we have Celestine Elizabeth, please? Yes, ma'am. Go ahead.

Respected Azim Premji, Founder Chairman; Chairman, Rishad Premji, other members of the Board, my dear fellow shareholders. I'm Mrs. C.E. Mascarenhas, speaking from Mumbai. First of all, I thank the company secretary, Mr. Khan and his team; and especially Roli Agarwal for sending me annual report plus registering me as a speaker and giving me this platform to guiding me to download the Microsoft team and all that, very good shareholder services.

The annual report is full of information and adhering to all the norms of Corporate Governance. Dividend is good. Wipro has always been rewarding the shareholders. Thank you so much.

Also, I congratulate you for all the awards and accolades received during the year. Very good CSR work, and lots of importance given to the ESG.

Now my question on the ESG is, have you gone for rating? Who is the rating agency if it is rated? And if it is good rating, then is there any thoughts for getting ESG bonds? Then we are the leaders in semiconductors and embedded systems designs. We are engineers of software-defined solution, world-class testing and vertical labs, Cloud Car eco. In which of these we are enjoying very good margins? And do we get repeat orders from our clients? How many clients are added in the last 6 months in the business process services and how much margins we are getting in this line of business?

1,881 patent granted till date, how many are there patents to be passed? Do we find any challenges due to Trump tariff policy? And how are we trying to de-risk that?

Lastly but not the least, future road map for the next 5 years, which vertical will be the growth engine along with good margins? Wipro is creating a long-term value, more agile and transparent and AI changing the entire ecosystem.

I support all the resolutions. I wish my company all the best.

Can we have the next shareholder, Mr. Dinesh Bhatia, please? We can't hear you, Mr. Bhatia.

We can't hear you. Do you want to go to the next one and come back again.

Can we have the next shareholder, Mr. Bharat Raj? Mr. Bharat Raj, please. Please go ahead, sir.

Good morning, Mr. Chairman, entire Board of Directors. I'm Bharat Raj from Hyderabad. Chairman, sir, performance, congrats to you. Dividend payout. And my congratulations for completing 80 years, sir. In this 80 years of completion, Chairman sir, can expect a special dividend of INR 8, switching out INR 8 for completing 80 years, can you consider this please?

Wonderful CSR and awards. My question is that in this financial [indiscernible], reached the target INR 1 trillion revenue -- and expect in this finance year or next financial year, which INR 1 lakh crores revenue, there is a big revenue, you are INR 88,000 crores. So only INR 12,000 crores are left. And next -- in this financial year, INR 150 crores.

Chairman, sir regarding this U.S.A and Russia, Russia and Ukraine and European, these are impacts -- that our revenue impact in the European countries [indiscernible]? In Annual Report, [indiscernible]. Every company is going for the GenAI. So at present we have employment around 2 lakh employees are there in our company, sir. If the AI is ready to use, the employment will come down, you face the challenge. For the Microsoft recently they removed somewhat 5,000 employees [indiscernible]. So in future also my company will remove employees if the AI is invested in our program or in our company. So how we face this challenge, sir, please let me know.

And regarding this [ existing CEO ], who has breached the contract of our company here. So how do you feature, how you made a strong the HR, sir? Future company maybe also do this, sir? Take this challenge, sir. So how are you making this HR system strong. So in the future, no employee or any other person will breach contract of our company secrets and areas regarding the company issue, sir. Please let me know.

I thank my Secretary, Mr. Khan, he's always accessible. They send me the entire annual report and the link. Once again my best wishes to you, Mr. Khan.

Chairman, one personal request, sir. On the hybrid AGM, sir. Like, in festival we used to have the weekend meet. We honor you in the AGM. Our Chairman, Azim Premji, used to there. We wish all of them. So hybrid mode, whoever want to attend, will come, sir. If they want to attend the VC, they'll attend the VC. So this is nothing peanut for my company. My revenue is also -- cost of expense also they have been. So Rishad ji, next year conduct hybrid mode, so that who want to come to the place, they come and meet you, and who don't want to come, they will come, they'll attend...

Can we have then next shareholder, please. Mr. Yusuf Yunus Rangwala.

We can't hear you, Mr. Yusuf. You're on mute. Do you want to try Mr. Bhatia again, and then the first person, the first person who couldn't be heard?

Yes. Can we have Mr. Dinesh Bhatia, once again. Can we try? Or Hutokshi Sam Patel? Yes, Mr. Bhatia, please good ahead.

We're unable to hear you, Mr. Bhatia. I think you're still on mute. Now we can hear you. Go ahead.

This is [ Dinesh Bhatia ] from Mumbai. Yes, I'm very happy and very proud shareholder. First I will thank our Sanaulla Khan for giving us links. Sir, this is a very good platform,sir. And our company has been 65 pages, sir. This is a very excellent annual copy, sir. We have never seen -- What is your company [indiscernible]. There are so many other businesses in this competition. We are manufacturing the stock, product [Foreign Language] but that is our sister company, if I'm not mistaken. Wipro are manufacturing all the other product that is our sister company. Why are you not merging that company with here, sir? [Foreign Language] Why are you not merging with this company? My question is that. And what are the total number of staff working at us? I am coming [Foreign Language] I'm coming after 3 months. Can you meet me, sir? Can you give me appointment of [indiscernible] this is my humble request. Sir, at time of Diwali. Please tell us some sweet or good news, sir. This is my humble request. [Foreign Language] 79th Annual General Meeting. [Foreign Language] Thank you very much. [Foreign Language]

Thank you.

Thank you. Thank you.

Can we try once again, Mr. Bhatia and he was coming online. Mr. Bhatia, please.

You had a person right in the front who was not able to hear. I forget, what is the name of that gentleman?

Yes, [ Hutokshi Sam Patel], if you want to try that once again.

Okay. So we'll try and answer some of these questions. So Srini has in the earlier set of questions answered, and I have also commented on the uncertainty as well as on our strategy. So in the interest of time, we won't repeat it because I think Srini provided a very comprehensive view in terms of what we are driving in terms of our business, but also to differentiate ourselves.

There were a couple of questions on innovation and patents. Let me just say this, that it's one of the things that Srini needed to do, which is the Wipro Innovation Network, where we work across Wipro Ventures and our Partner Labs and our Cloud Studios and across the 5 areas that he talked about. And so innovating both with our customers and on our own is a core part of the organization, which also reflects in the patents that we have both signed -- we have sort of, the kitty of patents we've built over time, which is now over 2,000 in the company. We leverage this both to monetize it as well as to offset it with patents from other peers and competitors and customers that we work with.

There was a question on the business process management business. That business has done very well for us. We continue to sign scale large deals, including one that we announced last quarter, which is a GBP 0.5 billion deal in the wealth and insurance space that we shared. Then profitability in that business. There was a question on that as well is actually very good. In fact, in many areas, it's better than the rest of the technology business. That business continues to do very well and remains an important area of focus for us.

There was a question on special dividend. We will keep that in mind. But let me just share that we have shared that we have increased our capital allocation to a minimum of 70% of our net income cumulatively over 3 years. We've done a one-on-one bonus issue in Q2. We've done a INR 6 dividend. And we've also shared that the Board will consider a dividend in the upcoming meeting tomorrow.

There was a question on Russia and Ukraine, just to give comfort. We talked about the geopolitics holistically. We do no business and generate no revenue from these markets. So I just wanted to provide that clarity as well.

The comment on the AGM is heard, and we will keep that in mind to consider a hybrid AGM going forward.

There was a question on remerging of our sister company in the consumer care and infrastructure engineering space. Let me just share that 12 years ago, we demerged it intentionally because we found the pathways for these businesses were very distinct. And so we have no intent of remerging them at the moment. And that's it.

I mean there was a question on ESG. Do you want to provide any color on that? That would be helpful.

So on ESG, we obviously have put out reports as per our guidelines, it's audited by Deloitte. We are also rated by DJSI. We've been in their top 10% for the last 14 years. So a lot of information is available in the annual report, and you should look at it.

Thank you. We will now move to the third set of shareholders. The first name is Hiranand Kotwani. Mr. Hiranand Kotwani, can you please come online and ask your question? Yes, sir, please go ahead.

Namaste, am I audible?

Yes.

Namaste to all those are listening to me. It is a great pleasure and pride. I'm Hiranand Kotwani joining from Kalyan. A lot has been spoken and lots of information that have been given. I will not waste the time. Certainly, I've asked Mr. Chairman one question regarding the interim dividen. You said in your report about the interim dividend. How dividend works? Please narrate from working and investment in how expenditure [indiscernible] question.

I have a question to Mr. Srini, he said that robotic technology, our -- how much outlay for the robotic technology? How it will yield in the America? We heard that due to the tariff [indiscernible], some panic buying is reported in U.S. and how many -- has been created are uncertainty in the cost, some sectors you have grown well. Can you take this sustainability growth in [indiscernible]. Thank you and good luck. Certainly, so many questions already asked. I will not waste the time. Best wishes for all.

Thank you so much.

Thank you. Thank you, Mr. Hiranand. May I request now Runal Pawar to come online and ask the question? Runal Pawar. Please go ahead, Mr. Pawar. Speak Mr. Pawar. Sir, you are on mute. We are not able to hear you.

You want to go to the next question then come back?

Yes. Can we have the next shareholder? Jaideep Bakshi? Yes, please go ahead. Mr. Jai, please unmute.

Yes. Very good morning. Myself Jaideep Bakshi, connecting from the city of Kolkata. First of all, I convey my greetings to our Founder Chairman, also Chairman and CEO and other key management persons for today's video conference meeting and also convey my thanks to our Company Secretary, Mr. Sanaulla Khan for giving me an opportunity to express my view and also to Roli Agarwal on the Secretary Department for keeping in constant touch and helping out to join this video conference. So the initial speeches was very much interesting and also the video presentation and share the impact of the AI technology today and also the AI-empowered speaker registration was great.

Sir, I just want to know how we are planning to counter the headwinds as the world is witnessing at present? And the transformation program as game-changer for clients by helping out to the -- through AI solutions?

Sir, in this calendar year, we have imported training to Defense Institute for approvement to new levels. So what is our thought process for the Wiproites for upskilling their program? And CSR activity has always been great and also your initiatives in the renewable energy has also been great. And thanks once again for rewarding the shareholders with the dividend of INR 6 and also the bonus we have passed on to you. So just share the thoughts on the new acquisitions for application service for long-term value creation for the clients.

And nothing to add more. I have supported all the revisions and hope our company move for future forward with confidence and trust of all the Wiproites. Thank you and continue with this DC in future so that we can get connected.

Thanks very much.

Thank you. Can we have the next shareholder, Mr. Ashit Kumar Pathak.

Am I audible, sir?

Yes, sir. Please go ahead.

Good morning, respected Chairman, Board of Directors, Company Secretary, fellow members joining at 79th AGM Wipro Limited. My name is Ashit Kumar, joining from Dum Dum, Kolkata. Excellent service from our respected Company Secretary, Mr. Sanaulla Khan [indiscernible] and excellent financial performance regarding shareholder and the bonus there and interim dividend.

Sir, I just have one brief question. I just [indiscernible] quality. Share your thoughts about the potential acquisition and CapEx allocate. And lastly, we had acquisition in Capco. So share your thoughts. How we take gain from this acquisition?

And Page 118 restructuring scheme of arrangement that is -- share your future optimism of this arrangement.

Number two, deregistration of 11 subsidiaries. Have we monetarily benefited about this deregistration with subsidiaries? And sir, I notice our finance cost very higher than previous financial year. We're about INR 9,813 million. Share your thoughts on cost -- reduction of finance cost and also how much debt we are providing in this financial year? I noticed our debt near about INR 161.8 billion.

182 page, some pending disputes mentioned, but the currency figure not mentioned there. I noticed there. How we may promptly [indiscernible] this dispute? And the Page 194, some present status of 36 pending complaints, mostly in investment and also 92 in [indiscernible] and investment in 36 [indiscernible], present status of this. And all, are we ongoing in bench role at present? And also total attrition rates at present and CapEx program for research and development in this financial year?

And finally, how we strategy taking transparency and ethical AI to protect us from empathic cyber crime by AI and data malware. It is a very important factor at present. Where is data malware is happening in this current financial year? So share your thoughts how we taking our section from this side.

And finally, very good company and also how we take opportunity to take cost reduction RBI 5.5% repo rate announcement. So that is very, very important for any acquisition and any business prospect? I pay to God for good health of our respected Chairman and everybody to my company. Thank you, sir.

Thank you.

Thank you. Can we have the next shareholder, Mr. Santosh Kumar Saraf? Yes, sir, please go ahead.

[Foreign Language]

Thank you. We'll answer these questions, sir.

So Mr. Saraf, we'll make sure that if we can find that photograph of you and Mr. Premji and Sana, you can just take that as an action, we'll can certainly send it to you if we can find it.

You had a question on ESG. Let me just say a couple of things. One is, and we have publicly shared this that we have committed to transform to net zero by 2040 and which is true decarbonization, just not carbon offsets. As I shared in my speech, now 84% of the power we use in all our campuses is renewable energy. And by the end of next year, which is financial year '27, we hope to be at 100% renewable across our campuses. We also have a commitment in terms of our usage of water, biodiversity, reuse of waste, et cetera. And I also shared the statistic on 31% of water on our campuses now is reused. So we have a very, very strong orientation and a very sincere commitment to ensure that we can do the best to preserve the environment and that is very much a part of our journey on transforming to net zero by 2040. You can certainly read more about that in our annual report.

We're very much committed to nation building and serving the nation. India has this unique position now where it's really become the -- a talent destination for the world. It's certainly on the digital and technology side and many of the things that we are building from an innovative perspective through the Wipro Innovation Network is trying to serve customers, both globally as well as here in India. So that is very much front and center in our thinking as well.

There was a couple of questions on acquisition. Let me just say this that we remain very committed to looking at acquisitions that can bring us differentiation. Differentiation either in terms of market access, differentiation either in terms of customer access, unique customer access or differentiation in terms of bringing us specific capabilities that we feel we can significantly enhance. And so that journey of looking at acquisitions remains and continues.

There was a question on Capco. And the Capco acquisition has worked out well for us. In fact, our best performing unit last year, and Srini shared this, was Capco, which grew at 6.6% year-on-year. So we will continue to look at acquisitions that makes sense.

There was also a question in the previous group and a question on this group on skilling. Look, the whole agenda for skilling and reskilling is very integral to the thinking at Wipro and certainly integral in terms of how do we leverage AI and enable our employees to leverage AI. As Srini and I both shared, we've had virtually all of our employees go through a GenAI 101, and there are 87,000 employees, there are different levels of GenAI 201,301, 401. So the thinking on reskilling and leveraging new technologies, both AI and others, is a core part of how do we help keep our employees relevant as technology continues to change and evolve.

One of the things we've also done is now we are working very closely with colleges, and we are working with 63 colleges going back into semester 5 and 6 to how to develop and correct -- develop the curriculum with schools that can then enable people graduating from colleges to be much more job ready when they graduate at the end of semester 8. So we're working closely with schools to design that curriculum, and also providing students the opportunity to intern with us as a part of the journey between semester 5 and semester 8.

There were a couple of other questions in -- Srini, I don't know if you want to talk a little bit about the robotic or intelligent technology. And then maybe, Aparna, you can answer some of the financial questions that we had.

Sure. So there was also a question on AI. For us at Wipro, it has to be -- AI has to be ethical, responsible, reliable and secure. So we have clearly created guardrails around our Wipro AI platform. In fact, we help our clients to make this a lot more ethical and responsible like I talked about, a very strong governance around data. So that way, we keep our AI and our programs are on AI, very secure and safe.

In terms of Quantum, the question that has been asked, Quantum is an evolving technology, it has been there very -- for a very long time. However, now we are actually partnering with few academic institute and a pharma companies to actually look at research work at a cell level, and that's actually really evolving. As Quantum becomes a lot more commercial, I think that will also have an impact on AI, we are very excited about the opportunity to work on Quantum, and we already have that in our labs working. I think as far as -- I think I covered that.

Okay. I think there were 2 or 3 questions. One was regarding the debt levels. You will notice that as of March 31, we had gross cash of about $6.2 billion. And our net cash is also about $4.2 billion. The borrowings are typically what we do for certain acquisitions because it makes sense from a tax efficiency standpoint. We also have certain short-term borrowings that support our working capital needs. Outside of that, our debt levels are very low, and we remain very conscious about adding more debt to the balance sheet.

You had a question on what is the currency that has not been mentioned in terms of the disputes. The amounts are there. It's in rupees million. For you to read that table, you should read it in rupees million. I think those were the two questions that was asked.

There was also a question on R&D. I think we spent about 0.5% of our revenues on R&D, and some of the details are there in terms of where we spend it on, including some of the newer technologies, like agentic AI, robotics, et cetera, which is all a part of that.

Yes. And there was another question, just I recall, on attrition. And our attrition for last year, the trailing 12 months has been about 15%.

That is correct, yes.

We'll go to the next set of questions?

We'll now go to the last set of shareholders. Mr. Manoj Kumar Gupta, please. Yes, please go ahead, sir.

Good morning, respected Chairman, Board of Directors, fellow shareholders. My name is Manoj Kumar Gupta. I've joined this meeting from my resident City of Joy, Kolkata.

I feel proud to be a shareholder of Wipro. And I thanks to your entire team of management and with the team of secretarial department to help the shareholders to join the meeting through VC. Especially, special thanks to our Company Secretary and his entire team to help me to join this meeting through VC and convey our best regards and wishes to your beloved, father, Azim Premji for his strong leadership in this sector. We have a great respect and regards. In my life, I have got a chance to meet him once in my life at ITC Sonar in Kolkata in 2005 when he came to deliver key note speech in CII program. So once again, I cordially invite him to come to Kolkata to visit Maa Kali temple to get her place to get more success to lead the company on new heights with your family, sir.

And sir, I have nothing to ask any questions, but I will suggest due to VC meetings will continue because you are in Bangalore, we are in Kolkata. So that the all credit goes to our beloved Prime Minister Narendra Modi who inspired the digitalization so that we can talk to you on VC meeting. So keep continue this VC meeting. This is the -- because Pan-India can join the meeting, sir.

And sir, plan for -- what's your plan for subsidiaries? Have you any plans to reduce the number of subsidiaries in future? And I thank your 250,000 employees for their hard working. And thanks for your bonus, sir [Foreign Language] at a premium of 8%, 9% for 3 years redeemable like other companies. So you should consider in future. And sir, you are the master in the health sector. And if you remind in 2023, BGBS, Bengal Global Business Summit. I meet you when you were sitting in your car, I told you that please do something under CSR for Kolkata and health and education, kindly do something in that regard, sir, health and education. With this, I thanks to you and your teams are, thank you.

Thank you. Can we have the next shareholder, Mr. [ Manjunath Mosali ]. Please go ahead, sir.

Good morning, everyone. Thank you for all your meetings. I'm more happiness for this meeting. We wanted for bonus shares and dividends.

Okay. Any questions, Mr. Manjunath?

Sir 2026, what is the company growth? We can learn that, sir?

Okay. Can we have the next shareholder, Geetu Chadha. Please go ahead.

My voice is audible?

Yes, please go ahead, sir.

Thank you so much for giving me the chance to speak with you. First of all, last year [Foreign Language] Sir, I'm coming to the direct point. Sir, [Foreign Language]

You've asked a lot of questions. Give us a chance to answer some of them. So we've taken note of them, some of the others, which I can answer offline. But let us answer some of the questions because otherwise, we won't be able to get to all of your questions.

[Foreign Language]

Yes. So let us answer them, Mr. Chadha. You've raised a lot of important questions. Let us try and answer them if that's okay. Okay?

Yes. Can we have the next shareholder, please, Mr. Abhishek Chaudhary.

We can't hear you, Mr. Chaudhary. You're on mute.

We can't hear you. Can we have the last shareholder, Mr. Mani, please. Mani Sundaram.

Mr. Mani you're on mute. Namaste.

We can't hear you, sir.

Sorry, sir.

Please, go ahead.

Page 25. I'm happy to attend this meeting by means of video conference. Founder Azim Premji, Rishad Premji, Company Secretary, all directors, all the independent directors and share department have given good support to attend the meeting. Convey my regards and thanks to all the director company [indiscernible] And they've given good [ efficience ] and also given very enthusiasm, velocity and efficiency to each and everybody of the shareholder.

And a small request, we have connected video conference Pan-India meeting, I have been settled in Tamil Nadu, very happy. In future, you can conduct a hybrid meeting. And some clarification in some -- in our annual report -- Hello. Hello.

Yes, we can hear you Mr. Mani.

Also Page -- we had Page#61 EPS, INR 12.56, pretty good. CSR [indiscernible] happy sir. And 182 Page #182, a lot of disputes from 1992 onwards as a settlement with the company to settle the disputes, and thank you. Thanks a lot. I requesting management for planned visits.

Thank you. Thank you.

[indiscernible] for generation in wind and solar also very same nation to the all...

Thank you, Mr. Mani.

Thank you, sir. Thanks for giving the chance, very happy.

Great. Thank you, so there was a couple of questions, and I'll let Aparna answer most of them. The comment has come up a couple of times on the format of the AGM. We will certainly take your comments into consideration and try and find the best medium as to how we can consider this next year.

There was a comment on profit after tax and EPS not being good. Just to clarify, our profit after tax grew at 18.9% last year, and our earnings per share grew at 20.6% last year, which we think is pretty good performance for PAT and for EPS.

I'm sorry, Mr. Chadha, you were not able to participate last year in the AGM. We will certainly look into why that happened, but I'm glad you were able to participate actively in this meeting and ask some of your questions, and we'll make sure we get some financial questions answered. So Aparna, why don't you answer that and also answer the question on the subsidiaries, which has come up in a couple of conversations.

The number of subsidiaries that we have is higher because every time we make an acquisition, the acquisition comes with its number of subsidiaries. After they get integrated into our systems, we do try and rationalize the number of subsidiaries year-on-year. Over the last 2 to 3 years, we have rationalized a number of subsidiaries. That's a continuous attempt that we make.

Your point on -- Mr. Chadha raised a few questions on the financials. One was on profits. Rishad has clarified, we grew actually 18.9% on our net income. The reason why our planned property and equipment is lower is because the intangible assets, some of them get amortized over a period of time. That's why the value is going down. If you look at the plant and equipment, you will see that it continues to be robust. There is nothing of concern.

Your point on why IT products revenue reduced, it's a segment we don't really focus on stand-alone product sales. They are actually sold integrated with our services revenues. So it's not a big area of stand-alone focus. And as a result of that, you will see some volatility in the revenues. I would request you to look at our overall revenue, which have done reasonably well.

If you look at -- you raised a point on the Chairman's compensation going up. There is a point -- a part of his compensation is linked to the incremental net profits that we make and as a result -- because our net profit grew 18.9% and our EPS grew 20.6%, as a result of that, the compensation linked to that component has also risen. And that is the reason why it's gone up.

You raised a point on why other income is down. You're looking at stand-alone financials. You had many questions around subsidiaries. There are certain intercompany transactions that kind of vitiate the financials of a subsidiary -- you should look at only consolidated financial statements, and that's the reason why we provide it. If you look at our consolidated financial statements, if you look at our other income, in fact, last year, we grew upwards of 60% year-on-year. And some of the other points that you're also noting will go away when you look at our consolidated financial statements, and that's the right way to look at it.

Terrific. So Sana, are we done with all the questions?

Yes, we're done.

Okay. Thank you for all of you who asked questions. I'm sorry, some of you were not able to unmute and ask those questions. Please reach out to us off-line, and we will make sure that we answer those questions as we can.

Since all the items of business as per the notice of the 79th Annual General Meeting have been taken up, I now declare the proceedings of this Annual General Meeting is completed.

As mentioned earlier, the Insta Poll e-voting facility will continue to be available for 30 minutes after this meeting. And again, on behalf of the Board of Directors and the management team of Wipro, I convey my sincere thanks to all of you, all of our members for attending and for participating in this meeting. Thank you once again. Take care.