Wipro Announces Q4 FY25 Results: Net Profit Surges 26% Beating Estimates

Wipro Limited (NYSE: WIT, BSE: 507685, NSE: WIPRO), a leading global information technology, consulting, and business process services company, today announced its financial results for the fourth quarter ended March 31, 2025, showcasing a robust growth in net profit that surpassed market expectations.  

The Bengaluru-based IT giant reported a consolidated net profit of ₹3,570 crore for the quarter, a significant 26% increase compared to the ₹2,835 crore reported in the same period last year. This figure comfortably beat analysts’ estimates, which had hovered around ₹3,290 crore.  

However, the company’s revenue from operations saw a modest rise of 1% year-on-year, climbing to ₹22,504 crore from ₹22,208 crore in the corresponding quarter of the previous fiscal year.  

Key Highlights of Wipro’s Q4 FY25 Performance:

• Net Profit: Increased by 26% YoY to ₹3,570 crore, exceeding market expectations.  
• Revenue from Operations: Grew by 1% YoY to ₹22,504 crore.  
• IT Services Segment Revenue: Stood at $2,596.5 million, a decline of 1.2% QoQ and 2.3% YoY.  
• Constant Currency IT Services Revenue: Decreased by 0.8% QoQ and 1.2% YoY.  
• Total Bookings: Reached $3,955 million, showing a strong growth of 13.4% QoQ in constant currency.  
• Large Deal Bookings: Stood at $1,763 million, up by an impressive 48.5% YoY in constant currency for Q4 FY25, and grew by 17.5% YoY for the entire fiscal year 2025.  
• Dividend: The company declared a dividend of ₹6 per equity share for the financial year 2024-25.

Management Commentary:

While the net profit growth provides a positive outlook, the slight dip in IT services revenue and modest overall revenue growth reflect the cautious spending environment prevalent in the IT sector due to global economic uncertainties. However, the significant increase in large deal bookings indicates a strengthening of Wipro’s long-term growth prospects.

During a post-results press conference held at 7:00 PM IST, Wipro’s senior management elaborated on the company’s performance and addressed questions regarding future strategies and market conditions.  

Outlook for Q1 FY26:

Looking ahead to the first quarter of the fiscal year 2026, Wipro provided the following guidance for its IT Services business segment revenue:

• Revenue: Expected to be in the range of $2,505 million to $2,557 million.
• Sequential Guidance (Constant Currency): Projected to be between -3.5% and -1.5%.

This outlook suggests a potentially softer start to the new fiscal year, likely influenced by seasonal weakness and the ongoing macroeconomic climate.

Market Reaction:

Ahead of the earnings announcement, Wipro’s shares had shown a positive trend, closing 1.94% higher on Tuesday. However, the market’s reaction to the actual results and the Q1 FY26 guidance will be closely watched in Thursday’s trading session.

Analyst Views:

Prior to the results, various brokerage firms had offered their perspectives on Wipro’s expected performance:

• JM Financial: Anticipated a 21% YoY increase in net income and a 2.6% YoY rise in revenue.  
• Elara Capital: Predicted a 2.2% QoQ decline in net profit, citing seasonal weakness and uncertain demand.  
• Kotak Institutional Equities: Expected a 0.5% QoQ decline in constant currency revenue.

The actual results reveal a stronger profitability than most analysts had projected, although the revenue growth aligns with the more conservative estimates.

Key Takeaways for Investors:

• Wipro’s strong net profit growth in Q4 FY25 is a positive sign, indicating improved operational efficiency and potentially better deal management.
• The significant surge in large deal bookings provides optimism for future revenue growth.
• The Q1 FY26 revenue guidance suggests a cautious near-term outlook, reflecting industry-wide headwinds.
• Investors will be keen to understand the management’s strategies to navigate the current market challenges and capitalize on the strong deal wins.

Broader Context of the IT Industry:

The IT services sector is currently navigating a complex environment characterized by:

• Macroeconomic Uncertainty: Global economic slowdown and geopolitical tensions are impacting client spending.
• Cautious Discretionary Spending: Clients are becoming more selective with their IT investments, focusing on essential projects and cost optimization.
• Competitive Intensity: The slowdown in growth could lead to increased competition among IT service providers for available deals.
• Emerging Technologies: Companies are increasingly focusing on areas like Artificial Intelligence (AI) and cloud computing, requiring IT firms to adapt their service offerings.

Wipro’s Q4 results, while showing strong profitability, also highlight these industry-wide trends. The company’s ability to secure large deals amidst this backdrop is noteworthy and will be crucial for sustaining growth in the coming quarters.

Final Thought

Wipro’s Q4 FY25 results present a mixed bag, with a strong beat on net profit but a modest increase in revenue and a cautious outlook for the next quarter. The significant growth in large deal bookings offers a silver lining, suggesting potential for stronger revenue growth in the medium to long term. Investors will be closely monitoring how Wipro executes its strategies in the face of the evolving global economic landscape and the dynamic IT services market. The declared dividend of ₹6 per share will also be a point of interest for shareholders.