Thursday's results day gave IT investors a perfect split-screen. Wipro's profit slipped 1.4% to ₹3,200.6 crore on slowing deal bookings. Tech Mahindra's profit surged 32.7% to ₹1,586 crore — and the board threw in a ₹15 interim dividend plus a 1:1 bonus issue, its first since 2015. Same sector, same quarter, opposite stories. Here's the verdict on both, and what each number actually means for someone trying to understand IT stocks.

Quick Answer

Wipro's Q2 FY27 consolidated net profit fell 1.4% YoY to ₹3,200.6 crore (down 4.5% sequentially), while revenue rose 9.1% YoY to ₹24,752.7 crore and operating margin improved to 16.5%. Tech Mahindra's net profit jumped 32.7% YoY to ₹1,586 crore on revenue of ₹16,180 crore (+15.6%), with EBIT margin at 14.8%. Tech Mahindra declared a ₹15-per-share interim dividend and recommended a 1:1 bonus issue. Wipro guided Q3 revenue growth of −1.5% to +0.5% in constant currency.

Wipro: steady, but the deal engine slowed

Wipro's profit line disappointed — ₹3,200.6 crore, down 1.4% from last year and 4.5% from the June quarter's ₹3,352 crore, below the Street's poll estimate. But almost everything else held up: Gross revenue: ₹24,752.7 crore — up 9.1% YoY and 1.1% sequentially (from ₹24,479 crore). Operating margin: 16.5% — up 50 basis points sequentially. Dollar revenue: $2,611.5 million — marginally down. Q3 guidance: −1.5% to +0.5% sequential revenue growth in constant currency — roughly where analysts expected. The worry is bookings: large-deal wins fell sharply — to about $2.6 billion from $4.7 billion a year earlier. In IT services, today's bookings are tomorrow's revenue.

Tech Mahindra: the quarter that had everything

Net profit: ₹1,586 crore — up 32.7% from ₹1,194.5 crore a year ago (and up 8.2% sequentially). Revenue: ₹16,180 crore — up 15.6% YoY, beating analyst estimates. EBIT margin: 14.8% — up 40 basis points sequentially, the 12th straight quarter of margin expansion. New deal wins: over $1.02 billion. Interim dividend: ₹15 per share (record date to be announced). Bonus issue: 1:1, recommended by the board — the first since 2015. One honest caveat: profit still fell short of the roughly ₹1,708 crore the Street had pencilled in.

Why the two went in opposite directions

1. Deal momentum. Tech Mahindra signed over $1.02 billion in new deals with twelve quarters of margin gains; Wipro's bookings halved year-on-year. 2. Base effects. Tech Mahindra's 32.7% jump comes off a softer year-ago base (₹1,194.5 crore); Wipro defends a much larger profit base. 3. Vertical exposure. Tech Mahindra's telecom-heavy client base is spending again; Wipro's mix faced more pricing pressure. Never compare two IT stocks on the profit-growth percentage alone.

What a 1:1 bonus issue actually means

For every share you own, you get one extra share free. If you held 100 shares at ₹1,600, you'll hold 200 shares at roughly ₹800. Your total investment value doesn't change. Why do companies do it? It improves liquidity, signals management confidence, and puts the stock within reach of smaller retail investors. It is not a wealth-creation event by itself. Note the board has recommended it; it still needs shareholder approval.

The ₹15 dividend: what shareholders get

Tech Mahindra declared a ₹15-per-share interim dividend; the record date will be announced in due course. Dividends are taxable in your hands at your slab rate, and the stock price typically adjusts down by about the dividend amount on the ex-date. A dividend plus a bonus in the same quarter is a loud signal of cash-flow comfort.

The IT earnings week so far — and what's next

TCS (Oct 8), HCLTech (Oct 12), Wipro and Tech Mahindra (Thursday), LTM (Friday). The common thread: revenue growth in the high single to low double digits, margins holding or improving, every management team pointing at AI-led deals. Next checkpoint: Infosys on October 23. Framework: compare its constant-currency revenue growth and deal wins against this week's range (roughly 9–16% YoY revenue growth, ~$1–1.7 billion in quarterly bookings).

FAQs

What was Wipro's Q2 FY27 profit?
What was Tech Mahindra's Q2 FY27 profit?
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When are Infosys Q2 results?
Why did Wipro's profit fall while revenue grew?

Your next step

1. Build a one-page tracker for this earnings season: for each of TCS, HCLTech, Wipro, Tech Mahindra and LTM, note revenue growth, margin, deal wins and demand commentary. 2. When Infosys reports on October 23, check whether it's outperforming the pack or riding the same wave. 3. Focus on deal wins and commentary — they lead the numbers.

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This article is for educational purposes only and is not financial advice. Please consult a SEBI-registered investment adviser for personalized guidance. Investments are subject to market risk.