Wipro shares dip 6% on disappointing Q4 results; weak Q1 guidance

As per the management, client spends deteriorated toward the end of Q4, and Q1 could see further impact. MOFSL believes Q1FY26 could be a quarter of declining revenue for the company

Shares of Wipro slipped 6 per cent to Rs 232.20 on the BSE in Thursday’s intra-day trade after the information technology (IT) services company reported revenues of $2.59 billion, down 0.8 per cent quarter-on-quarter (QoQ) and 1.2 per cent year-on-year (YoY) in constant currency (CC) terms in the fourth quarter of the financial year 2024-25 (Q4FY25).

 

Wipro Q4FY25: Management speak

Wipro's management has guided for the IT Services business segment revenue to be in the range of $2,505 million to $2,557 million, translating to sequential guidance of (-) 3.5 per cent to (-) 1.5 per cent in CC terms. The company aims to maintain margins within a narrow band going forward. Margin levers include sustaining or improving utilisation, enhancing fixed-price productivity, and rationalising overhead costs.

 

 

As per the management, client spends deteriorated toward the end of Q4, and April to June quarter (Q1) could see further impact. A soft guidance of revenue decline reflects this, according to analysts.  READ STOCK MARKET LIVE UPDATES TODAY HERE

 

Wipro Q4FY25 results: Key numbers here

Meanwhile, India’s fourth-largest IT services provider has reported a 25.9 per cent rise in net profit in Q4FY25 to ₹3,570 crore compared to a year earlier, even as its 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.

 

Tariff war impact on Wipro Q4FY25 results

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. 

Result analysis: ICICI Securities on Wipro Q4FY25

  ICICI Securities, in a note, said Wipro reported an abysmal quarter on the revenues front, amidst global macroeconomic uncertainty and US tariffs which is causing clients to tread with caution w.r.t transformation projects and discretionary spending. Sectors like consumer and manufacturing (Auto and Industrials) saw direct impact from this uncertainty, while BFSI remained resilient.   ALSO READ | Eicher Motors, Indian Bank among top picks by Ruchit Jain of MOFSL

 

The softness is expected to persist in Q1. The management aims to keep margins in the narrow band of 1–1 .5 per cent. The key positive this quarter was the strong total contract value (TCV) and robust order pipeline, bolstered by two mega deal wins. Key monitorable ahead would be Wipro’s ability to improve deal-to-revenue conversion and stabilise its European operations, the brokerage said; it remains cautious given the lack of near-term positive catalysts for growth.

 

Result analysis: Motilal Oswal Financial Services on Wipro Q4FY25

Motilal Oswal Financial Services (MOFSL) believes Q1FY26 could be a quarter of declining revenues for Wipro and other large-caps in this domain. A poor exit in Q4 and the implied decline in Q1 drives the brokerage firm’s expectation of a 1.9 per cent YoY revenue decline in CC terms in FY26E.

 

“We cut our FY26E/FY27E EPS estimates by ~4 per cent to account for weak Q1FY26 guidance and sustained demand softness in key verticals and regions. We reiterate our Sell rating on WPRO with a target price of ₹215, implying 17x FY27E EPS,” MOFSL said in the result update. 

About Wipro

Wipro is a leading technology services and consulting company focused on building innovative solutions that address clients’ most complex digital transformation needs. 

Wipro provides comprehensive IT Solutions and Services including Systems Integration Information Systems Outsourcing IT Enabled Services Package Implementation Software Application development and maintenance and Research and Development Services to corporations globally. 

 

Wipro is the first PCMM Level 5 and SEI CMM Level 5 certified IT Services Company globally.