Wipro, the Bengaluru-based IT services major, announced its Q4 FY25 financial results on April 16, reporting a strong 26% year-on-year (YoY) growth in its consolidated net profit to ₹3,570 crore. This performance came despite a muted revenue increase of just over 1% compared to the same period last year.

The earnings announcement highlighted both strengths and concerns, showcasing robust deal momentum but also revealing ongoing challenges in the IT services landscape due to macroeconomic pressures.

Revenue Performance and Margins

For the quarter ending March 2025, Wipro’s IT services revenue declined by 1.2% on a quarter-on-quarter (QoQ) basis and 2.3% YoY, signaling pressure in client spending and project ramp-ups.

However, the company maintained its operating margin at 17.5%, which was flat compared to Q3 and up 1.1% YoY, indicating tight cost control and improved efficiency in operations.

This shows that even as top-line growth remained stagnant, profitability improved—a critical metric for analysts watching margins amid a tough macro environment.

Large Deal Bookings Surge

One of the standout highlights of the quarter was Wipro's strong growth in large deal bookings. The company reported large deals worth $1,763 million, marking a 48.5% increase YoY in constant currency terms.

This jump in deal wins includes two mega deals and reflects Wipro’s ability to win big contracts even in a competitive and cautious IT spending environment.

The increase in large deals suggests long-term visibility in revenues and reaffirms client trust in Wipro’s digital transformation capabilities.

Q1 FY26 Guidance

Despite a solid Q4 performance, Wipro issued cautious guidance for Q1 FY26, indicating revenue pressure in the upcoming quarter.

Wipro expects IT services revenue to be in the range of $2,505 million to $2,557 million, which translates to a sequential decline of (-)3.5% to (-)1.5% in constant currency terms.

This soft outlook reflects continued client caution, driven by macroeconomic uncertainty and longer decision-making cycles, especially in the U.S. and European markets, where enterprise IT budgets remain tight.

CEO Commentary

Srini Pallia, CEO and Managing Director of Wipro, commented on the Q4 performance, stating:

“We closed FY25 with two mega deal wins, an increase in large deal bookings, and growth in our top accounts. Client satisfaction scores improved, reflecting strong execution and engagement. As clients remain cautious in the face of macroeconomic uncertainty, we’re focused on partnering closely with them while staying committed to consistent and profitable growth.”

Pallia's statement underscores the company’s intent to remain agile and client-focused amid industry-wide headwinds.

Strategic Initiatives and Execution

Over the past year, Wipro has concentrated on deepening its presence in key verticals such as banking, energy, retail, and technology services. These strategic moves have helped drive large deals and maintain client stickiness.

The company’s investment in AI, cloud, and cybersecurity services has also continued to yield returns as enterprises accelerate digital transformation across sectors.

Market Reaction and Analyst View

Following the Q4 results, analysts have offered a mixed outlook on Wipro. While the profit beat and deal pipeline are seen as positives, the weak revenue guidance for Q1 FY26 remains a concern.

Brokerages may revise their EPS estimates and target prices depending on how quickly Wipro can convert its deal wins into billable projects and scale execution.

IT Sector Snapshot

Wipro’s Q4 results come amid a challenging earnings season for Indian IT companies. Many peers, including TCS and Infosys, have flagged slow decision-making and budget constraints among clients, particularly in BFSI and tech segments.

The entire IT industry is navigating a phase of pricing pressure, project deferrals, and reduced discretionary spending, all of which have impacted revenue visibility.

Future Outlook

Looking ahead, Wipro’s focus remains on:

• Enhancing operational efficiency to protect margins

• Accelerating digital and cloud adoption among its clients

• Upskilling talent to remain relevant in emerging technologies like AI, automation, and machine learning

• Driving profitable growth by targeting large transformational deals

While short-term growth may be subdued, Wipro’s strong order book, diversified client base, and focus on execution position it well for a recovery once the macro environment stabilises.

Conclusion

Wipro’s Q4 FY25 results paint a picture of resilience amid uncertainty. The company has managed to grow profitably, even with stagnant revenues, thanks to tight cost control and strategic deal wins.

However, FY26 may begin on a cautious note, and investors will keenly watch how Wipro navigates client spending cuts and macroeconomic headwinds in the months ahead.

With a disciplined management approach, strong client relationships, and focus on long-term transformation, Wipro remains a key player in India's IT sector, albeit in a phase of recalibration.

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