IT major Wipro on Wednesday reported a 25.9 per cent year-on-year rise in consolidated net profit for the March quarter to ₹3,569.6 crore but warned of a weak quarter ahead with up to a 3.5 per cent expected drop in IT services revenue for Q1FY26, amid global uncertainties.
Wipro CEO and managing director Srini Pallia said clients remain cautious in the face of macroeconomic uncertainty. However, Pallia assured that Wipro is focused on partnering closely with them, while keeping its gaze on consistent and profitable growth.
Over the past few weeks, the US administration’s on-off-tariff moves have roiled global markets and many IT analysts fear that a bitter trade war and a possible slowdown in the American economy could take a toll on IT decision-making or curtail tech demand and spends from specific verticals, particularly in the discretionary segments.
The $280 billion IT services company derives a large chunk of its revenue from US clients.
At Wipro’s earnings conference on Wednesday, Pallia acknowledged that the recent tariff announcements have only added to the global uncertainties.
“The global industry environment remained uncertain for most of the year. And, of course, the recent tariff announcements have only added to that. Even though the underlying demand for the tech re-invention remains strong, our clients are approaching it more cautiously,” he said.
Revenues for the fourth quarter (Q4) of FY25 came in at ₹22,504.2 crore, a marginal increase of 1.33 per cent from ₹22,208.3 crore in Q4 FY24.
The net profit (attributable to equity holders of the company) for Q4FY25 was up 25.9 per cent to ₹3,569.6 crore. Seen sequentially, the profit and revenue rose 6.43 per cent and 0.83 per cent, respectively.
The earnings per share for the quarter at ₹3.4 ($0.04), translated into an increase of 6.2 per cent quarter-on-quarter and 25.8 per cent in the year-ago period.
For full FY25, profits rose 18.9 per cent to ₹13,135.4 crore. Revenue for the full fiscal year slipped a tad (0.74 per cent) to ₹89,088.4 crore.
But the biggest disappointment, however, is its Q1FY26 guidance.
For the June quarter, the Bengaluru-based firm sees revenue from its IT services business in the range of $2,505 million to $2,557 million.
This translates into sequential guidance of (-)3.5 per cent to (-)1.5 per cent in constant currency terms.
“As clients remain cautious in the face of macroeconomic uncertainty, we’re focused on partnering closely with them while staying committed to consistent and profitable growth,” Pallia said.
Wipro closed FY25 with two mega deal wins, an increase in large-deal bookings, and growth in top accounts, he said.
“Client satisfaction scores improved, reflecting strong execution and engagement,” said Pallia, who completes a year at the helm as the top boss of Wipro.
The company — which competes with larger peers like TCS and Infosys for contracts in global and domestic markets — asserted that it continued to invest in global talent and in strengthening consulting and AI capabilities.
Wipro’s employee count closed at 2,33,346, slightly higher than 2,32,614 in the same period previous year.