Wipro Q4 FY25 results: Net profit up 25.9% to Rs 3,570 cr; misses estimates

CEO Srinivas Palia blames tariff war and macro woes for revenue slide

India’s fourth-largest information technology (IT) services provider, Wipro, reported a 25.9 per cent rise in net profit in the fourth quarter (Q4) of 2024–25 to ₹3,570 crore compared to a year earlier, even as revenue fell. Sequentially, profit was up 6.4 per cent.

 

Revenue for Q4 rose 1.3 per cent from the year-ago period to ₹22,504 crore. On a sequential basis, revenue grew 0.8 per cent.

 

Wipro’s Q4 performance missed Bloomberg estimates. Analysts polled by Bloomberg had projected revenue at ₹22,683 crore and net profit at ₹3,350 crore.

 

On a constant currency basis — which excludes the impact of exchange rate fluctuations — IT services segment revenue declined 1.2 per cent year-on-year (Y-o-Y) and 0.8 per cent sequentially.

 

 

Chief Executive Officer Srinivas Palia attributed the drop in revenue to a worsening macroeconomic environment, amplified by the tariff war that has spooked industries. “The global industry environment remained uncertain for most of the year, and the recent tariff announcements have only added to that,” he said at a media briefing on Wednesday.

 

That led the Bengaluru-based IT firm to caution that its revenue could decline in the current quarter by as much as 3.5 per cent, or 1.5 per cent at best, in constant currency terms.

 

“Given the uncertainty in the environment, we expect clients to take a more measured approach going forward — especially on large transformation programs and discretionary spending,” Palia added.

 

Palia has been banking on large deals to turn around the company’s fortunes, which have trailed peers for more than a decade. Wipro won two large deals last financial year, which Palia termed a “strong sign” that the company’s large-deal pipeline was on track. The total contract value of large deals stood at $5.4 billion at the end of the financial year, up 17.5 per cent in constant currency terms compared to a year ago.

 

However, such deals — mainly focused on cost optimisation — are also slow to ramp up and take time to materialise. In an already subdued demand environment, large deals also bring fierce competition among IT services firms, typically squeezing margins.

 

Tariff threats have already made an impact, with the consumer and manufacturing sectors bearing the brunt as clients stall projects and shelve discretionary spending. Palia said a large client has already halted one of its ongoing projects as it assesses the fallout of the tariff war.

 

Banking, financial services and insurance (BFSI) revenue was down 0.2 per cent Y-o-Y, while the consumer and manufacturing businesses were down 1.2 per cent and 8.7 per cent, respectively. Spending by BFSI — a key metric for gauging the environment, which had picked up in the third quarter, has also turned conservative.

 

Of the four strategic market units, only Americas 1 grew, by 5.4 per cent Y-o-Y in Q4, while the other three declined. Almost all verticals saw a decline both Y-o-Y and sequentially, in reported terms. On a constant currency basis, BFSI grew 0.8 per cent Y-o-Y; the consumer business was flat. Energy, manufacturing and resources declined 7 per cent Y-o-Y but grew 1.1 per cent quarter-on-quarter (Q-o-Q). Technology and communication were down 1.1 per cent Y-o-Y and 0.9 per cent Q-o-Q.

 

Wipro’s margins remained flat at 17.5 per cent. “Our focus on execution rigour has ensured that our margins have steadily expanded even in a softening revenue environment. We will endeavour to maintain the margin within a narrow band in the coming quarters,” Chief Financial Officer Aparna C Iyer said.