Wipro shares in focus ahead of it's Q4 results tomorrow; check expectations

Wipro Q4 Preview: Seasonal weakness in consulting and a fall in demand during the quarter will likely impact Wipro's top line in Q4FY25

Wipro Q4 results preview: Information technology (IT) giant Wipro is expected to report muted sequential growth in both revenue and profit for the fourth quarter of the financial year 2024–25 (FY25), impacted by seasonal weakness and subdued demand, according to analysts.

 

The IT firm will report its earnings for the quarter ended March on April 16, Wednesday.

 

Wipro's revenue is expected to rise slightly by 1.49 per cent quarter-on-quarter (Q-o-Q) to ₹22,651.80 crore, according to analysts tracked by Business Standard. Seasonal weakness in consulting and a fall in demand during the quarter will likely impact the IT bellwether's revenues, analysts said. 

 

A weak top line for the IT major is set to weigh on the earnings before interest and tax (Ebit) margins, as analysts expect the margins to fall by 12 basis points Q-o-Q. The IT major is expected to post a 1.05 per cent decline in net profit for the fourth quarter sequentially to ₹3,318.60 crore. On a year-on-year (Y-o-Y) basis, the net profit is expected to grow at an average of 17.07 per cent.

 

Wipro posted a net profit of ₹3,354 crore for the third quarter of the current financial year (Q3FY25), up 24.5 per cent from a year ago and 4.5 per cent Q-o-Q. 

 

Here's how analysts of various brokerages expect Wipro to fare in Q4:

 

Kotak Securities: Analysts expect that the deterioration in demand will lead to a revenue decline of 0.5 per cent in constant currency (CC) terms on a sequential basis. "We forecast stable Ebit margin with benefit from rupee depreciation, offset by lack of operating leverage/revenue decline."

 

Taking into consideration the Phoenix mega-deal, Kotak expects the Total Contract Value (TVC) to be in the range of $1.6 to 1.8 billion. They expect the revenue guidance range of -0.5 per cent to +1.5 per cent for the June 2025 quarter. The state of discretionary spending by clients, the rationale for realignment of services line to a new structure, the strength of the deal pipeline and margin levers in FY26 will be among the key things to watch, Kotak said.   

 

Nuvama: The brokerage expects IT services revenue to decline by 0.4 per cent quarter-on-quarter in constant currency and by 1 per cent in US dollar terms. Margins are likely to stay mostly flat, Nuvama said. For Q1FY26, Wipro is expected to guide revenue growth between -1 per cent and +1 per cent in constant currency. "Investors will also be watching for updates on its consulting business and deal execution".

 

HSBC: The brokerage expects CC growth for Wipro near the upper range of its guidance of -1 per cent to 1 per cent. They estimate that a CC impact of negative 30 bps would depress USD growth. HSBC views the recent management reshuffle, led by the new internal CEO, as a positive development for Wipro. However, challenges persist with key clients and in the energy and manufacturing verticals, it said. 

 

While the company has made strong progress in expanding margins—creating room to invest in growth—the market remains cautious, awaiting clear signs of improved deal wins and execution before any potential re-rating, according to HSBC.