Wipro Limited (WIT) Income Statement

The revenue growth trajectory shows a pronounced deceleration, with year-over-year growth peaking at 11.2% in 2027Q1 and then declining to 0.8% in 2026Q1 before a slight recovery to 7.7% in 2026Q4. This pattern suggests that the company may be facing demand normalization or increased competitive pressures. The sequential revenue increases are modest, implying that the growth is not accelerating but rather stabilizing at a lower level. Investors should monitor whether this deceleration is a temporary cyclical dip or a structural slowdown.

The gross margin has shown resilience, hovering around 29-31% despite revenue fluctuations. However, the most recent quarter (2027Q1) saw a decline to 28.5%, the lowest in the period, which may indicate rising input costs or pricing pressure. This could be a leading indicator of margin compression if the trend continues. The company's ability to maintain gross margins above 28% suggests some pricing power, but the recent dip warrants close attention.

The relationship between revenue growth and operating income growth is inconsistent. In some quarters, operating income grows faster than revenue, indicating positive operating leverage, but in others, it lags or even declines. This suggests that the company's cost structure is not fully scalable, possibly due to fixed costs or investments in growth initiatives. The recent quarter (2027Q1) shows a significant drop in operating margin to 15.6% from 17.3% in the prior quarter, which may indicate rising SG&A or other operating expenses.

The primary cost driver appears to be SG&A, which has shown high variability. For example, SG&A dropped to $22.6B in 2025Q4, boosting operating margin to 17.0%, but then rose to $33.4B in 2026Q3, compressing margin to 14.8%. This inconsistency may reflect variable marketing, administrative, or project-related costs. The company's ability to control SG&A will be crucial for maintaining profitability, especially as revenue growth slows.