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DATE

Thursday, Oct. 15, 2026

CALL PARTICIPANTS

• Vice President, Corporate Treasurer and Head of Investor Relations - Abhishek Jain
• Chief Executive Officer and managing director - Srinivas Pallia
• Chief Financial Officer - Aparna Iyer
• CHRO - Saurabh Govil

TAKEAWAYS

• IT Services Revenue -- $2.61 billion, representing flat growth sequentially and a 0.6% year-over-year increase in constant currency.
• Operating Margin -- 16.5%, reflecting a sequential expansion of 0.5 percentage points driven by operational improvements and rupee depreciation.
• Total Contract Value -- $2.6 billion, encompassing nine large deal signings during the quarter.
• APMEA Revenue -- 3.1% sequential growth and 13% year-over-year growth in constant currency, fueled by consumer technology and communications.
• Europe Revenue -- 0.6% sequential growth and 5.1% year-over-year growth in constant currency, led by the banking, financial services, and insurance (BFSI), consumer, and energy sectors.
• Americas 2 Revenue -- 0.9% sequential growth despite a 4.7% year-over-year decline in constant currency, driven by the energy, manufacturing, and resources (EMR) sector.
• Americas 1 Revenue -- 2.1% sequential decline and a 2.7% year-over-year decline in constant currency, impacted by client-specific issues and healthcare softness.
• BFSI Sector Revenue -- 1% sequential growth and 1.3% year-over-year growth, as clients focused on cost optimization and legacy modernization.
• Consumer Sector Revenue -- 2.6% sequential growth and 6% year-over-year growth, supported by traction in travel, transportation, and consumer packaged goods.
• Technology and Communications Revenue -- 2.6% sequential decline although it grew 7% year over year.
• Health Sector Revenue -- 3.8% sequential decline and 6.5% year-over-year decline, affected by U.S. policy changes and reduced discretionary spending.
• EMR Sector Revenue -- 1% sequential growth while declining 6% year over year in constant currency terms.
• Net Income -- ₹32 billion, representing a 5% sequential decrease primarily due to reduced investable surplus following a share buyback.
• EPS -- ₹3.23, representing a 0.9% sequential increase and a 4.2% increase year over year.
• Operating Cash Flow -- 166% of net income, which management described as a result of relentless focus on cash generation.
• Gross Cash -- $4.6 billion as of Sept. 30, reflecting the impact of the share buyback completed in June 2026.
• Net Other Income -- 68% sequential decline, resulting from a lower investable surplus after the completion of the capital return program.
• Q3 Revenue Guidance -- $2.571 billion to $2.625 billion, translating to a sequential growth range of -1.5% to +0.5% in constant currency.
• AI Native Workforce -- Over 2,000 engineers focused on outcome-based deals and driving non-linear growth through the company's AI native unit.
• Effective Tax Rate -- 23.9%, remaining flattish compared to the same quarter in the previous year.
• India Investment Yield -- 7.1%, representing the accounting yield for the average investment held in India.
• Employee Headcount -- 240,000 employees, with management noting a flattish year-over-year trend and a pause on campus hiring in the first half of the year.

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RISKS

• Pallia stated, "Americas 1 declined sequentially due to client specific issues and softness in healthcare," noting specific regional headwinds.
• Pallia warned that "healthcare in the U.S. continues to be affected by policy changes," which has caused payers to tighten discretionary spending.
• Pallia stated, "Q3 for us will remain impacted by seasonal furloughs," which influenced the company's sequential revenue guidance.

SUMMARY

Wipro Limited (WIT +3.61%) reported second-quarter results highlighting a demand environment that management described as largely unchanged, with clients focused on efficiency and productivity while accelerating AI adoption. The company reported flat sequential revenue growth in constant currency, supported by momentum in its banking, financial services, and insurance (BFSI) sector and strong performance in the APMEA and Europe markets. Management emphasized a consulting-led strategy, noting that strategic investments in acquisitions like MindSprint and HARMAN DTS are building a foundation for future growth despite near-term margin headwinds. Guidance for the third quarter reflects anticipated impacts from seasonal furloughs and lower working days, though management remains optimistic about its deal pipeline and the expansion of AI-driven opportunities.

• CEO Pallia noted that "investments in custom silicon, design-to-manufacture, and physical AI are creating opportunities across the engineering value chain."
• The company identified four opportunity areas in Global Capability Centers (GCCs), including helping clients with AI transformation in greenfield and brownfield environments or monetizing existing centers.
• CFO Iyer reported that "operational improvements, rupee depreciation, offset by a continuing investment in business" were the primary factors driving a 0.5 percentage point expansion in operating margin.
• Management cited the launch of an AI native unit in April that uses over 2,000 engineers to transition clients to AI native enterprises through outcome-based deals.
• Pallia stated that two large deals slipped from the second quarter due to delayed paperwork but expressed confidence that both will be signed during the current period.
• The company is focusing on five emerging AI growth themes, including AI data centers, AI foundry services, and autonomous business operations applying AI to physical machines.
• CHRO Govil indicated that direct productivity gains from AI projects are beginning to influence the company's headcount and hiring strategies.

INDUSTRY GLOSSARY

• APMEA: Asia Pacific, Middle East, and Africa strategic market unit.
• BFSI: Banking, Financial Services, and Insurance sector.
• CC (Constant Currency): A method of reporting financial results that eliminates the effects of foreign exchange rate fluctuations.
• EMR: Energy, Manufacturing, and Resources sector.
• GCC: Global Capability Center, an insourced delivery center providing IT or business services for a parent company.
• SLM: Small Language Model, a compact version of a language model designed for specific tasks or efficient deployment.
• SMU: Strategic Market Unit, a regional organizational division within the company.
• TCV: Total Contract Value, the total dollar value of all contracts signed during a specific period.

Full Conference Call Transcript

Operator: Ladies and gentlemen, good day, and welcome to Wipro Limited Q2 FY 2027 Earnings Conference Call. As a reminder, all participant lines will be in a listen-only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded and the duration today's call will be 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.

Abhishek Jain: Thank you. This is Sherid. Good evening. Warm welcome to our Q2 FY 27 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 our CHRO, Saurabh Govil, on this call. Afterwards, the operator will open the bridge for Q&A with our management team. Before Sini starts, let me draw your attention to the fact that during this call, we may make certain forward looking statements within the meaning of private securities Litigation Reform Act of 2000.

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 the transcript will be available on our website. With that, I would like to turn the call over to Sini. Sini, over to you.

Srinivas Pallia: Thank you, Abhishek. Good evening, Thank you all for joining us today. This quarter, demand environment has remained largely unchanged. Our clients remain focused on efficiency and productivity. While increasingly looking to accelerate AI adoption. and drive long-term values. This balance between efficiency and growth is shaping demand across industries. Let me begin with what we see in our priority sectors. In BFSI, we continue to see strong momentum. Clients are focused on cost optimization, legacy modernization, and scaling authentic AI across the enterprise. Digital native and new edge firms are driving demand in our technology sector. Investments in custom silicon, design-to-manufacture, and physical AI Are creating opportunities across the engineering value chain.

We also see growth emerging across AI model ecosystem from model training and evaluation, to execution. In the EMR, energy, manufacturing, and resources sector, we have seen some good wins in previous quarters and those deals are ramping up. This sector continues to gain traction across markets Specifically, I would like to call out BPS and engineering. In consumer sector, we are seeing good traction in CPG, travel, and transportation. Our recent new wins and revenue from OLAM deal have also supported our performance in the sector. However, healthcare in the U.S. continues to be affected by policy changes At the same time, cost pressures across payers and providers are creating new outsourcing opportunities.

This, along with our differentiated platform based offerings, and rising regulatory requirements are shaping our pipeline. are shaping our pipeline. Moving to our financial performance for the quarter, In Q2, our IT services revenue stood at $2.61 billion flat sequentially and up 0.6% year on year in constant currency. Our operating margin for the quarter was 16.5%, an improvement of 0.5% compared to last Within our markets, 3 of our 4 SMUs strategic market units, reported sequential growth. Americas 1 declined sequentially due to client specific issues and softness in healthcare. Americas 2 grew sequentially driven by EMR, with encouraging momentum in BFSI. Europe grew sequentially and year on year delivering broad based growth led by BFSI, Consumer and EMR.

APMEA maintained strong traction growing sequentially and year on year. Growth was filled by consumer tech and comms. Coming to deal wins and pipeline, this quarter, we closed $2.6 billion in total contract value and signed 9 large deals. Our bookings reflect a healthy mix of new businesses, and expansion of existing engagements. Let me give you an example of a consulting-led AI powered transformation deal. A global financial institution engaged Wipro to accelerate its transformation through an AI enabled operating model. Through this engagement, we will modernize software development drive greater efficiency across the life cycle and scale the Capco ways of working. Resulting in faster execution, broader AI adoption and an agile operating model for our client.

This win among others, including a large deal in energy, last quarter, reflects growing impact of our consulting led strategy in originating larger opportunities. Beyond large enterprises, we also see strong traction in deal wins and pipeline in the mid market segment. These organizations understand that AI can be a force multiplier in scaling capability and redefining their competitive landscape. As an example, a global mid market consumer products company selected us to accelerate their technology transformation by establishing an AI capability center in India. Through this engagement, we will scale engineering technology operations to support ERP modernization cloud native platforms and AI capabilities for our client.

The outcome will drive innovation, improve engineering productivity, and strengthen global delivery model for our client. We are beginning to see tangible returns from our strategic investments made in recent quarters. MindSprint has strengthened our position in food and agriculture, opening new market opportunities. HARMAN DTS has boosted our engineering capabilities helping us win new logos and deepening existing client engagements. We will continue to make these investments even when they create near term margin headwinds. They enhance our strategic position expand addressable markets, and build a stronger foundation for future growth. In April, if you recollect, we launched our AI native unit to help clients transition from traditional delivery models to AI native enterprises. We are making rapid progress.

With over 2,000 engineers including FD, forward deployed engineers, we are seeing growing success in outcome based deals and driving non linear growth. This investment is already delivering results Let me share a few examples. First, an SLM deployment for a major U. S. Retail bank. Second, implementation of an AI powered digital plant for 1 of the largest petrochemical companies in The Middle East. and third, an enrollment and billing SLM deployment for a leading U.S. healthcare payer. In addition, we also built industry specific SLMs for wealth management, insurance, healthcare, aviation, and asset intensive industries. Combined with our AI agents, and orchestration platform, These capabilities enable us to transform virtually any business workflow.

Into an AI native workflow helping our clients unlock new levels of productivity speed and business value. Based on growing traction, in AI, we also accelerated investments in AI services and solutions across 5 emerging AI growth themes. AI data centers, AI foundry services, physical AI, AI devices, and design to manufacturing. In fact, these services and solutions position us across the full AI value chain. And help us capture opportunities that extend beyond traditional technology spend. With that, let me share our guidance for the next quarter. Q3 for us will remain impacted by seasonal furloughs. We are guiding for a sequential IT services revenue growth of -1.5% to +0.5% in constant currency.

Despite a challenging macro environment, our business remains resilient. We are very encouraged by emerging opportunities across markets. AI will expand new growth avenues and accelerate demand for higher value transformation. Signs of this are already evident. In the momentum we are seeing across our new AI services. I will now invite Aparna to share details on our financials. Thank you. Over to you, Aparna.

Aparna C. Iyer: Thank you, Srinivas. Good evening, everybody, and thank you for joining us. I will share a quick update on the financial performance for Q2. And after that, we can open it up for Q&A. Our IT services revenue grew 0.6% year on year in constant currency terms. Revenues were flat sequentially in constant currency terms Our operating margin for the quarter was 16.5% and expansion of 0.5% sequentially. Operational improvements, rupee depreciation, offset by a continuing investment in business have been the underlying factors driving this improvement We will work towards improving the margins even as we create headspace for growth. In terms of the SMU performance and sector performance, I will share a few numbers.

All of them are in constant currency terms. Americas, too, grew 0.9% sequentially, declined 4.7% on a year on year basis. Europe grew 0.6% sequentially and grew 5.1% on a year on year basis. APMEA grew 3.1% sequentially and 13% on a year on year base. Our Americas 1 business was soft and declined 2.1% sequentially, and 2.7% on a year on year basis. From a sector standpoint, BFSI grew. grew 1% sequentially and 1.3% on a year on year basis. Consumer grew 2.6% sequentially and 6% on a year on year basis. Energy manufacturing and resources grew 1% sequentially while declining 6% year on year.

Technology and Communications declined 2.6% sequentially while they continued to grow on a year on year basis at 7%. Health declined 3.8% sequentially and 6 declined 6.5% on a year on year basis. In terms of other key financial parameters, our net other income which includes interest income, declined 68% sequentially primarily because the investable surplus reduced quarter on quarter owing to completion of a buyback in June 2026. As a result of the lower other income, our net income was reported at 32 billion for the quarter. It declined 5% sequentially.

However, the EPS, which is the right metric given that we completed a buyback, the quarter that ₹3.23. which increased 0.9% sequentially and 4.2% on a year on year basis. We remain, relentless in our cash flow generation. Quarter 2 is yet another quarter of robust operating cash flows. We generated 166% of net income. With this, our gross cash as of September 30 was at $4.6 billion Our effective tax rate was at 23.9%. Flattish compared to same quarter last year. Accounting yield for the average investment held in India was 7.1%.

In terms of the guidance, like Srinivas said, we expect our revenues to be in the range of $2.571 billion to $2.625 billion This translates to a sequential guidance of -1.5% to +0.5% in constant currency terms. We can now open the line up for Q&A. Thank you very much.

Operator: Ladies and gentlemen, we will now begin the question and answer session. If you wish to remove yourself from the question queue, you may press * and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Take our first question from the line of Girish Pai from BOB Capital Markets. Please go ahead.

Girish Pai: Yes. Thanks for the opportunity. I wanted to ask about the TCV number, which is down quarter on quarter quite a bit, both from a large deal and a total TCV perspective. Were these numbers up to your expectations? If not, what exactly transpired in the quarter?

Srinivas Pallia: Hi, Girish. Srinivas here. As far as our TCV of Q2 is concerned, we had few deals where the contract could not be signed on time. Because of which, they are slipping to this quarter. And both the deals that we could not sign will get signed. As far as we are concerned, you know, the pipeline is very robust. And in addition to this deal. These 2 deals, we have a very strong pipeline for Q3 itself. And we are very optimistic of better closure in quarter 3 as far as TCV is concerned.

Girish Pai: Okay. The other thing I want to ask you is regarding GCCs. There seems to be a tendency of some customers on selling off their GCCs to vendors like you, and I have seen this happen with HCL Tech and TCS and all that. So are there many more such deals in the pipeline? I mean, are there many more customers wanting to sell out the GCCs for whatever reason?

Srinivas Pallia: So, Girish, if you look at the GCCs, there are 4 opportunity areas. 1. is the greenfield where the client has already has a GCC, and looks at companies like us, to come and help them to enhance and bring in, AI transformation to that. There are brownfield where we actually help the clients enhance their capability. Then there are some clients who would want to monetize their GCC. As far as we are concerned, we partner with our clients on all, whether it is greenfield, brownfield, or monetization opportunities.

Girish Pai: Okay. Lastly, when is the salary increase going to happen?

Saurabh Govil: Oh, that is for Girish, you would note. We just gave a salary increase effective for March 2025. Oh, sorry, 2026. So it is been just a few months since we rolled out. So right now, it is not under consideration.

Girish Pai: Okay. Thank you.

Operator: Thank you. We will take our next question from the line of Sudheer Guntupalli from Kotak Mahindra AMC. Please go ahead.

Sudheer Guntupalli: Yes. Hi, Sudheer. Thanks for the opportunity. My question is, as the AI tech diffusion happens from the hardware layer, downstream into consulting and services, to interrupt you.

Operator: We could not hear you properly, Sudheer.

Sudheer Guntupalli: Hello? Yeah. I hope I am clear now. Yeah.

Srinivas Pallia: Much better. Yeah.

Sudheer Guntupalli: Yeah. No. Srinivas, thanks for the opportunity. And, my question is, as the AI tech diffusion happens from hardware layer downstream into services, and the fact that most of the players are now look to be excessively leveraged in the overall ecosystem. Any thoughts on using your cash rich balance sheet to make very big-bang acquisitions like we had done in the cloud? We have--be it the likes of Capco, Rising, etcetera. So any thoughts of using the web net cash balance sheet this time around, which could be a source of your competitive advantage?

Srinivas Pallia: Today, you know, if you look at broadly, our growth strategy is both organic and inorganic. As far as the inorganic play is concerned, we look for opportunities which can enhance our strategy, which is consulting led and AI powered. Within the sectors of our priority sectors and the markets that we go after. Far as, you know, acquisitions are concerned, our strategy will continue to be the same. We will look at opportunities that can enhance our value. Just to give you a context here, if you look at the acquisition that we made with HARMAN DTS, it actually gave us capabilities around design to manufacture and connected services.

If you look at, as part of the OLAM deal, we actually acquired MindSprint, and that has given us capabilities in the food and agribusiness sector, Supply chain, and also farm to fork process. So we will look at opportunities, Sudir, and constantly look out for that.

Sudheer Guntupalli: Got it, Srini. Thanks. that is it for me.

Operator: Thank you. We will take our next question from the line of Ravi Menon from Axis Capital. Please go ahead.

Ravi Menon: Thank you for the opportunity. So in the downturn in spending started in BFSI, you guys were the first to be impacted because of the high exposure to consulting. Now when the spending starting to pick up, at least it seems like from the results of your peers. BFSI seems to be doing well. You are not seeing the full benefit of that. Is there anything that is holding us back? Are there any client-specific issues? Anything like that would be good to know. All this consulting not really picking up and these are when the consolidation deals are, I guess, seen.

Srinivas Pallia: So, Ravi, if you look at BFSI from a Wipro perspective, we grew 1% sequentially and 1.3% on a year on year basis. We had some good wins in this quarter. That is Q2. And, you know, we actually won a consulting led transformation deal that I covered in my opening remarks. 1 of the mega-deals we had announced earlier ramp up was delayed is now starting to ramp up. Additionally, if you remember, a specific customer in BFSI in Europe had earlier decided to move part of the work to the captive which impacted our revenue.

The good news is that we are now seeing good momentum building up with this customer, and it is reflecting in the growth numbers in the current quarter and going forward. Also, Capco which is our consulting arm for BFSI, has done a very good performance including growth across including APMEA, Continental Europe, and UK. that is where we are. As far as the. We have a research segment. If you were to look at from a market perspective, Ravi, spending in BFSI remains resilient. And AI and data investment are growing meaningfully. And, you know, some of them are through relocation, and some of them are through productivity takeout.

So, and again, across the bank, you know, BFSS segment starting with the banking, A lot of work, a lot of opportunities for us around core application and data modernization. You know, like, you know, also includes all this cloud migration, I know some of the clients are looking for application rationalization, AI-ready data foundation. So--and to me, BFSI has have a very strong pipeline. And BFSI as a sector remains very resilient for us.

Ravi Menon: Thanks, Srini. I appreciate that. We know that last, I would say, 2, 3 years, we have seen growth in 1 or 2 quarters, we have a large deal, maybe we are a consolidation deal. And I guess, since, you know, the overall spending environment was muted, we have seen declines in other quarters. Rishi? And do you think now we have a clear trend where, at least in BFSI, we see consistent growth in the coming quarters.

Srinivas Pallia: I. Like I said, you know, I am very optimistic about BFSI as a sector for us and for the industry as well.

Ravi Menon: Thanks, Anastri. And so would you expect this to lead growth for you in the coming year?

Srinivas Pallia: Sorry?

Ravi Menon: Would you expect this vertical to lead growth, for you in the coming year? Or Would you expect 1 of the other verticals to actually be the growth leader within your portfolio?

Srinivas Pallia: So, you know, Ravi, you know, I will let my team compete. It is between BFSI and tech.

Ravi Menon: All right. Thank you. I appreciate that. Best of luck.

Operator: Thank you. Before we take the next question, we would like to remind participants to ask a question, please press * and 1 on your phone. Next question is from the line of Sandeep Shah from Equirus Securities.

Sandeep Shah: Yes. Thanks. Thanks for the opportunity. Just some clarification. Sir, you. Srini, earlier you did, in the earlier quarter earnings call, there are some client specific issues. So any update on the same? Or do you believe largely behind or may have impact in the second half? Second, the guidance for this quarter will have some inorganic acquisition led growth that have been built through Alpha So can you quantify that? And even for 2Q, what was the organic growth?

Aparna C. Iyer: So Sandeep, I just wanted to reiterate the client specific issues that we had highlighted. A large part is behind us and, you know, effective Q3, we should be--a large part of it should be done. But I think your second question was around acquisition and inorganic growth. We have referred to this in the past When we spoke of MindStreet, it was actually an acquisition that we did the context of a deal because we found the capabilities to be something that could add value to the pro at an overall basis as well. And that was the reason why we did it as part of a structured large deal with Olam.

We did have 1 month revenue that came through. The other 1 that you are referring to in terms of AlphaNet is more of, like, a tuck in within a large client. Where we are looking at consolidating vendors out. We are not calling out the impact of that specifically. It was not very material.

Sandeep Shah: Okay. And just as a last question, You also said that going forward, margins may keep increasing despite investment. Do you believe we may, again, by Q4, be in the target range of 17-17.5%?

Aparna C. Iyer: Sandeep, we are endeavored to continuously improve margins from where we are. Like I said, we roll out a hike, and therefore, the margins have come down, and the operational improvements will continue to kick in through the quarter, and that does help the margin go up. We will also have to invest for growth There are 2 areas. 1 is, of course, in terms of you know, the AI and detailed unit that we have called out. Will be a place where they will continue to invest. And we will invest in our clients and our business as it may need to.

So, yes, I do think that, you know, from a we would like to get back to the band as quickly as possible, but they are not putting a timeline out there.

Sandeep Shah: Okay. Thanks and all the best.

Operator: Thank you. Next question is from the line of Girish Pai from BOB Capital Markets. Please go ahead.

Girish Pai: Thanks for the follow-up opportunity. Srinivas, this is more to do with the industry, not so much about Wipro. What do you see as the outlook for demand over the next 12 months? Is it better than what you saw in the last 12 months? That is question number 1. Second, the deflationary pressures how long do you think this will continue? Are we in the early stages or the middle of the deflationary cycle or we are at end?

Srinivas Pallia: So, Girish, know, like I said, there is no change in the demand environment. However, the client discussions today are increasingly about accelerating AI adoption AI deployment, and also, you know, innovation. You know, you know, many of our clients are innovating. Leveraging AI. The idea for them is to clearly create term business value and also at the return investment. So that. From that perspective, the demand environment continues and AI continues to accelerate, and we see a lot more opportunities around. AI. However, cost optimization and vendor consolidation continue to be other drivers for our clients. This context, what I would say, is I would look into our pipeline, today. The pipeline for Q3, Q4, and year ahead.

Is extremely strong And, you know, like I said, quarter 3 should have a very good bookings based on what we see and some of the deals that could not be closed in, or the papers could not be signed in last quarter.

Aparna C. Iyer: They will also move in.

Srinivas Pallia: So net, I would say we also need to look at from sector to sector Like I said, BFSI, I was optimistic. Now if you look at the text, which I said. We just said that, we have and tech would be the 2 who could compete for the growth for a at Wipro. And within tech space, are multiple opportunities that we have. Know some of them are, you know, AI, you know, moving beyond software and, becoming part of infrastructure products and also physical operations of the business.

So if you look at AI data centers or AI factories, or AI foundry services, Also, you know, in this segment, we are seeing good traction. that is why I called out physical AI. And, you know, autonomous business aspect because we are helping AI into machines and physical operation. You know, applying AI to machines and the real world operations, if you ask me. This will help our clients from a. Not just from a productivity, but also safety and responsiveness. So this is another sector we continue to grow. In addition to BFSI. I have. I talked about EMR. You know, it was a good quarter, and we are seeing very strong, traction, especially in the energy segment.

You know, within EMR. And then while EMR has overall grown sequentially and, you know, we see this traction some of the wins. Based on the previous quarter. So, again, this is another segment that, you know, we continue to see traction because, you know, we did take some time to start bringing growth back here, and now the growth has come in. So if it goes. Girish, you know, goes by sector to sector, also goes by market to market. Know, if you look at US economy, very strong. And I think we continue to see strong pipeline out there.

Europe, despite what is going on, you know, some of the countries there, you know, the clients are definitely looking at just the cost optimization, vendor consolidation. They are also relooking at AI strategy, sovereign AI, specifically in the context of the geopolitics.

Aparna C. Iyer: And the question on deflation, where are we in the cycle? So, you know, we have spoken about this in the past, Girish. You know, typically, our contracts are about 2 to 2.5 years in terms of the average tenure. Rishi? And we have been in this cycle for at least last 2 years. And. Or thereabouts, 1.5 to 2 years. So in some sense, a lot of the contracts that we have had have been refreshed and renewed. So you know, in some sense that should be at that inflection curve in a few quarters. that is the way I we read it and yeah.

Girish Pai: Okay. Thanks.

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

Vibhor Singhal: Hi. Thanks for taking my question. So 2 quick questions from my side. So, Srini, on the. I do not. I am sorry. I got disconnected in between, so I do not know if you have answered that before. On the health care side, just wanted to pick your brains on We saw weakness in this quarter, and it is been kind of continuing for some time. For us. Healthcare is a vertical where I think a lot of companies our space are very excited about the opening up their new, basically, verticals. In terms of health care which suggest to us. Suggesting to us that there is very little outsourcing penetration in this segment. So how do. What are.

What does our take away in the sector? Of reasons for our slightly do. And our lower growth or decline in this quarter? And how do you see the vertical going over the next few quarters?

Srinivas Pallia: Sure. I think what Thanks, Vibhor. As far as the health as a sector, you know, you know, especially in The US, it is impacted by policy changes. And large US payers in. Despite, you know, despite this, you know, very intensely focused on cost takeout, and also operational efficiencies because membership growth is slowing down. And, their margins are remaining to remain under pressure. Thereby, the payers are tightening discretionary spend and prioritizing AI automation And in fact, you know, some of the compliance aspects of it and also productivity led transformation initiatives. If you look at regulatory mandates, you know, like, this program interoperability, especially in the Medicare medic. You know, Medicaid, aspects.

The prior authorization reforms I know. I think these are also, you know, know, getting into the mix for. As far as we are concerned. However, you know, from a context of Wipro, we have built our end to end platforms based services which, again, obviously resonating well with our customers and this is the. A major differentiator because are able to bring in ACA, Medicare, and Medicaid together in, you know, in the current in a single platform. We are also losing demand from first time outsources in the health care segment. Now we are looking at, you know, outsourcing IT services to, especially because of the sustained cost pressures that they are going through.

We expect health to benefit on account of seasonality in quarter 3, though not to the extent seen in previous years. Vibhor.

Vibhor Singhal: Got it. Got it, Srini. that is really helpful. And just 1 last question on the deal win side. So I think the deal wins in this quarter, and I know you alluded to that in the opening remarks. So was it mainly because of the I mean, some slippages that we saw in this quarter for us and maybe which could possibly come in the next quarter. Or as I think we have still kind of heard a lot of companies pointed out that this quarter, we had some pullback in clients and some slow decision making because of the gulf war. If you could just throw some color on that, that would be really helpful.

Srinivas Pallia: Sure, Vibhor. We had confirmed orders in quarter 2. Unfortunately, some paperwork did not get signed. So those deal we will pick it up in quarter 3. So they are not going anywhere. There is no impact on any, you know, on that aspect. So it is good news that they are getting signed now. Also, like I said, the pipeline for Q3 is very robust. We are very optimistic on the deals that we have. At this point in time, and these are all good deals and should give us revenue immediately. You know, once we close these deals, should give us revenue upside in quarter 4 as well.

So the focus right now is for us to close these quarter 3 deal. And all I can tell you is that, it is robust and it is positive.

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

Operator: Thank you. Next question is from the line of Ashwin Mehta from Ambit Capital. Please go ahead.

Ashwin Mehta: Hi, thanks for the opportunity. Just a follow-up to what Vibhor asked so you have seen health exchange enrollments dropped by almost 18% in June. We typically used to do this business. So just want to get a sense on how big is this business in our health care vertical? And how do you see this playing out in the December quarter? Because, typically, that is where the peak enrollment season kicks in. And the second question was in terms of like, we are talking about positivity in terms of deal flow in the next quarter.

So in that context, the 6.5 thousand+ people being cut in this quarter particular segment or where these cuts have happened Any color on that given the improved deal flow, do you think the quarter will be a positive growth quarter for us?

Aparna C. Iyer: Okay, Ashwin. Thank you for your questions. Let me take some of the invites. Like, and then if I missed anything, you just alert me again. In terms of the bookings and therefore, the last quarter 4, outlook be better. You know, that is the visibility that we have at the moment. We are very confident about the deal pipeline. And like Srinivas said, we are expecting to close some of those deals in the early half of this quarter, and that should increase our confidence of, you know, increase the confidence for our outlook for Q4 for sure. Q4 for sure.

Srinivas Pallia: Your other question was around--this was around the health enrollment. As far as the. We are concerned, we do not call out that specific number, Ashwin. We just give the overall health numbers. And like I said, I know. We did have an impact because of some of the policy related changes that happened to some of the U.S. payer. And, you know, the idea here is to proactively creating some of the newer deals with first-time outsourcers were also considering you know, taking the. You know, especially because of the cost pressures. Would like to outsource. So the deal pipeline continues to build up here.

You know, from that perspective, I think, you know, we should see good time, sooner than later. And if you remember, Ashwin, last many quarters, health has been has been. Has done very well for us and we have significant capabilities and competencies in the sector.

Ashwin Mehta: Okay. Thanks. And just a follow-up in terms of in terms of the headcount cuts this quarter, what was the driver for that?

Saurabh Govil: From the headcount, if you look at it, year on year, it is flattish. So you know, and point. Particularly in this year. This quarter, if you look at first half we do not go on campus. So, you know, that is the thing.

Ashwin Mehta: We will be going to campuses to hire given the volume growth in second half?

Saurabh Govil: I think it will it will even out as we move forward. Also direct productivity from my AI projects. it is also. That is also coming At least. Hope for creation to improve.

Ashwin Mehta: Okay. Thanks a lot and all the best.

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

Dipesh Mehta: Yeah. Thanks for the opportunity. A couple of questions. First of all, just to get a sense about furloughs, how do you expect furlough to play out this year? Second question is about the 2 deals which you referred, which got delayed in terms of signing. Whether we close both the deal in terms of signing this quarter or it is it yet to be signed kind of thing. And last is about the. Let's say, if I look overall vertical perspective, ex-BFSI, broadly, we are seeing growth momentum recovering and on the positive side. Health also, we are hopeful of things to improve.

Broad based growth returning, Are we confident, let's say, sequential growth resuming for us in maybe a couple of quarters down the line? Can you provide that sense? Thank you.

Aparna C. Iyer: So, you know, in terms of the furlough, they are. They come every Q3 for us. And that is the seasonality that plays out both in terms of lower number of working days and the furlough. They are not unusual. They will be. They are expected to be broadly in line with what we saw last year. that is at least what we have baked into the guidance. And we will try and optimize from here on. Your second question, Dipesh, was on the large deal wins, whether they have been already closed Like Srini said, they are in the progress of being signed, and we are confident of securing both the deals.

And we will share that with you when we meet next in January. Your other question was on when we can whether we can be confident of sequential growth in quarters to come. That is the endeavor. We would certainly are trying to grow the business consistently, sequentially, in terms of the organic growth, and that will be the endeavor. You know, we do not guide for the year. We guide only for the quarter. But based on the pipeline and the confidence that we have, we will share more with you when we meet in January.

Dipesh Mehta: Understand. Thank you.

Operator: Thank you. We will take our last question from the line of Gaurav Rateria from Morgan Stanley. Please go ahead.

Gaurav Rateria: Hi, thank you for taking my question. Srini, just wanted to understand, you know, where are the various service lines that we have at what stage of the journey we are in terms of led by the AI infusion that we are doing across the board?

Srinivas Pallia: Sure, Gaurav. If you look at it from a strategy perspective, we called out consulting-led AI powered Wipro. 2. we called out Wipro ai-native Intelligent Stack as from a execution perspective. We had 3 categories. Build AI, which is supported by our Wipro ai-native Intelligent Stack (WeGA) platform. This is around the software development life cycle, product development life cycle. We called out, Run AI, which is more on the run and operate. Which is the WINGS platform that we have. Helps our clients to improve their productivity, velocity, and experience as well. And then we called out reimagine AI, In reimagine AI, there are 3 big components.

1. is AI consulting and advisory, examples I talked about is the win that we had through Capco. In 1 of the large BFSI client. And, you know, you actually follow it through downstream revenue. 2. we, you know, we. I talked about new AI services where we are investing. And that continues to grow for us because these are the services that were not existent in a few quarters back. They are really picking up because AI is also evolving. The adoption and deployment of AI is also priority for our clients; this part really helps them. And the 3rd piece is our AI native unit where we are building industry and cross-industry platform.

Specifically in specific industry segments, whether it has to do with aviation, to do with health care, to do with telecom, Rishi? And do with, you know, mortgage to do with insurance and so on and so forth. These are platform play. it is like a software as a service, you know, such a combination of platforms and so. Software and services. And we are seeing a very good traction here because we are reimagining the end to end process with AI for our clients. And, you know, this platform actually fit in, they can actually transform their, business processes. So net-net, I think, you know, AI is really, you know, helping us in the context of, pipeline.

Also in the context of winning them in the marketplace.

Gaurav Rateria: Got it. Got it. The second question is this 3Q guidance does have an impact of probably furloughs and some client specific challenges. That are, you know, flowing through in Q3 as well. Is there also an element of the deals getting pushed out which kind of have an impact on the guidance in Q3. And if the deal wins get bunched up in Q3, will that have a positive influence on the Q4 revenue conversion metrics?

Aparna C. Iyer: Yes, Gaurav. Yes, Gaurav. The short answer to that is yes. It will have a positive impact on the quarter 4, outlook for revenue. To your other point on whether the quarter 3 guidance includes the impact of some of these large deals getting pushed? You know, we guide in a range. Rishi? Obviously, the. And what you should look at the guidance is factoring in the majority. I mean, what is really largely leading this is basically the furloughs and lower working days. And outside of that, you know, we will. We will have a range to. And assuming we are able to convert some of these things, you know, it should also help in the quarter's execution.

Gaurav Rateria: Got it. Thank you so much. All the very best.

Operator: Thank you. I now hand the conference back to Mr. Abhishek Jain for closing comments. Over to you.

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

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