Bengaluru: In a quarter marked by cautious client spending and global tech uncertainty, Wipro has managed to end FY25 on a high note — delivering a stellar 26 percent year-on-year rise in net profit for the January–March quarter.
The Bengaluru-headquartered IT major reported a consolidated net profit of ₹3,570 crore, significantly higher than analyst estimates of ₹3,290 crore, and up from ₹2,835 crore in Q4 FY24.
While revenue growth remained modest — up 1.33 percent YoY to ₹22,504 crore — the sharp jump in profitability underscores Wipro’s strategic focus on operational efficiency and margin protection amid tough macroeconomic conditions.
Flat topline, strong bottomline
Revenue from operations for the quarter edged up marginally from ₹22,208 crore a year ago. However, a deeper look reveals that Wipro’s core IT services business continues to face pressure.
IT services revenue fell 1.2 percent sequentially and 2.3 percent YoY to $2,596.5 million. In constant currency terms, the segment saw a 0.8 percent QoQ and 1.2 percent YoY decline.
Despite the tepid topline, Wipro’s operating margin in the IT services segment improved 110 basis points YoY to 17.5 percent, holding steady sequentially.
This signals the company’s growing discipline around cost control and strategic execution.
Mega deals reflect strong client confidence
Perhaps the most encouraging sign for investors and analysts is the company’s surge in large deal bookings. Wipro reported a massive 48.5 percent YoY jump in large deal signings, amounting to $1.76 billion.
Total bookings for the quarter stood at $3.96 billion, up 13.4 percent sequentially in constant currency terms.
Wipro CEO Srini Pallia attributed the performance to a combination of strong execution, client-centric innovation, and deepening customer relationships.
“We closed FY25 with two mega deal wins and growth in our top accounts. Client satisfaction scores improved, reflecting strong execution and engagement,” he said.
Stock performance: A mixed bag
Ahead of its Q4 earnings announcement, Wipro shares edged up 1.39 percent to ₹247.50 on the BSE. However, the stock has underperformed over the last quarter, falling more than 12 percent since January despite a full-year gain of 10 percent.
Wipro’s stock remains below key moving averages, signalling continued caution among investors. The scrip hit its 52-week high of ₹324.55 on January 23, 2025, but also saw lows of ₹208.40 in June 2024.
The current market cap stands at ₹2.58 lakh crore.
Looking ahead: Eyes on Q1 guidance
As Wipro prepares for the next fiscal, all eyes will be on its Q1 revenue guidance and the trajectory of its IT services segment.
Analysts are expecting a cautious start to FY26, with flat-to-declining revenues in dollar terms and EBIT margins holding in the 17.5-17.7 percent range.
Still, Wipro’s strong finish to FY25 offers a silver lining. With solid profitability, increasing deal momentum, and resilient margins, the company appears to be building a stable foundation in uncertain times.
