Wipro, Axis Bank, LTIMindtree, IHCL, HDFC AMC: Q1 results preview

A couple of BSE100 companies including IT firms Wipro and LTIMindtree, private lender Axis Bank, asset manager HDFC Asset Management Company Ltd are scheduled to report their June quarter results on Thursday. Here's what brokerages said in their Q1 earnings preview notes. 

Axis Bank Q1 results preview
Systematix expects Axis Bank to 4.2 per cent YoY rise in net profit at Rs 6,289 crore for the quarter on 2.8 per cent YoY rise in net interest income (NII) at Rs 13,822 crore. Provisions are seen rising 51 per cent sequentially to Rs 2,100 crore, optically high, as there was a write-back of provisions in the previous quarter (Q4). Slippages are expected to remain elevated, driven by seasonally high agri slippages. 

"The QoQ advances growth to be marginally higher than the industry growth. The fall in RoA will not be completely off set by the fall in CoD, hence, NIM will witness a contraction QoQ. Sequentially, Fee income to be lower due to seasonality but YoY growth t0 remain healthy. Employee expenses are expected to be high, due to annual appraisals," it said.

Wipro Q1 results preview
Foreign brokerage HSBC said Wipro is likely to give another soft guidance for Q2, even as it expects the business outlook to improve for the company from Q3 onwards. For the June quarter, the IT firm is expected to report 5.3 per cent YoY rise in net profit at Rs 3,161 crore on 0.2 per cent rise in net sales at Rs 22,000 crore. Dollar revenue for IT services is seen falling 1 per cent QoQ and 2.1 per cent YoY. It sees a 150 bps tailwind for constant currency revenues. Lower utilisations, rupee appreciation to
adversely impact Ebit margin, which are seen at 17 per cent against 17.5 per cent in the March quarter.

"We expect CC growth for Wipro at mid-range of its guidance (-3.5 per cent to -1.5 per cent). CC impact of positive 150bp should provide some cushion for USD revenues. We expect EBIT margin to fall QoQ 45 bps adversely impacted by lower utilisation and INR appreciation. Key focus areas: Outlook on Europe, Capco business amid the policy uncertainty in the US and Wipro’s large-deal pipeline will be key," HSBC said.

LTIMindtree Q1 results preview
Sharekhan expects LTIMindtree (LTIM) to report revenue growth of 1 per cent in constant currency (CC) terms. EBIT margins are expected to improve 50 bps sequentially, driven by fit for future program. For
LTIM, the $450 million deal win is likely, which may take order inflow above $1.5 billion for Q1FY26.
This brokerage sees LTIM reporting 4.1 per cent rise in net profit at Rs 1,180 crore compared with Rs 1,134 crore in the same quarter last year. Net sales for the IT firm is growing 7.9 per cent YoY to Rs 9,861 crore compared with Rs 9,143 crore YoY. Ebit margin is seen contracting to 47 basis points to 17.1 per cent from 17.6 per cent YoY. 

"LTTS is expected to report a sequential decline of 3.1 per cent in CC terms while EBIT margin is expected to decline by 30 bps," Sharekhan said. 

HDFC AMC Q1 results preview
Kotak Institutional Equities sees the AMC to report 12.5 per cent YoY rise in net profit at Rs 679.50 crore. Revenue is seen rising 22.5 per cent to Rs 949.90 crore. The brokerage is building in 7 per cent QoQ growth in overall QAAUM in for the domestic MF business, reflecting higher equity indices along with sustained net inflows. 
"Average Nifty-500 was up 5-6 per cent  QoQ (up 10 per cent on period-end). We expect yields to decline qoq due to sharp AUM growth. We expect ~25 per cent YoY core PBT growth, driven by 23 per cent YoY revenue growth and 14 per cent YoY expense growth. Other income is up sharply qoq due to market rally. Focus to remain on stability of retail flows and yields," Kotak said. 

IHCL Q1 results preview
IHCL is expected to post sales growth of 14 per cent YoY with operating profit margin likely at 29.8 per cent, up 80bps YoY, said YES Securities. 

"Standalone business should report 9 per cent ARR growth with slight decline in occupancy. Ginger hotels expected to continue strong momentum in Q1," YES Securities said.

"Expect high single digit RevPAR growth, primarily led by 9% ARR growth. Occupancy to remain flattish for the quarter due to the impact of geopolitical tensions in May and June. Ex-TajSATS, revenue growth
expected at 14 per cent YoY. Operating margins are expected to be +80bps higher YoY for hospitality segment. Management income expected to register 20%+ YoY growth, led by addition of managed keys over FY25," it added.