Wipro Limited, a global leader in technology services and consulting, released its financial results for the fourth quarter (Q4) and full year (FY) ended March 31, 2025, showcasing resilience amid a challenging macroeconomic environment. With a strategic focus on large deal bookings, margin expansion, and AI-driven innovation, Wipro has demonstrated steady progress.
Financial Highlights for Q4 FY 2025
Revenue Performance
- Gross Revenue: Wipro reported a gross revenue of ₹225.0 billion ($2,634.2 million) in Q4 FY 2025, reflecting a modest QoQ increase of 0.8% and a YoY rise of 1.3%. This growth indicates stabilization despite cautious client spending.
- IT Services Revenue: The IT services segment, Wipro’s core business, generated $2,596.5 million, down 1.2% QoQ and 2.3% YoY. In constant currency terms, the decline was softer at 0.8% QoQ and 1.2% YoY, suggesting currency fluctuations partially impacted reported figures.
- IT Products Revenue: The IT products segment contributed ₹0.8 billion ($9.5 million), a decline from ₹1.2 billion in Q4 FY 2024, aligning with Wipro’s focus on services over products.
Profitability and Margins
- Net Income: Net income for Q4 stood at ₹35.7 billion ($417.8 million), up 6.4% QoQ and a robust 25.9% YoY. This growth underscores Wipro’s ability to enhance profitability through operational efficiencies.
- IT Services Operating Margin: The operating margin for IT services reached 17.5%, flat QoQ but up 1.1% YoY, reflecting disciplined cost management. CFO Aparna Iyer emphasized execution rigor, noting a 110-basis-point YoY expansion in Q4 margins.
- Earnings Per Share (EPS): EPS for the quarter was ₹3.4 ($0.04), increasing 6.2% QoQ and 25.8% YoY, driven by higher net income and a stable share count post-bonus issue.
Cash Flow and Capital Allocation
- Operating Cash Flow: Q4 operating cash flow was ₹37.5 billion ($438.5 million), down 28.2% YoY but representing a healthy 104.4% of net income. For FY 2025, operating cash flow reached ₹169.4 billion ($1,983.0 million), or 128.2% of net income.
- Dividend: The board declared an interim dividend of ₹6 per share in January 2025, considered final for FY 2025, signaling confidence in cash generation.
Bookings and Deal Wins
- Total Bookings: Total bookings in Q4 were $3,955 million, up 13.4% QoQ in constant currency, reflecting strong demand for Wipro’s services.
- Large Deal Bookings: Large deal bookings soared to $1,763 million, a remarkable 48.5% YoY increase in constant currency, highlighting Wipro’s success in securing high-value contracts.
Full-Year FY 2025 Performance
Revenue Trends
- Gross Revenue: FY 2025 gross revenue was ₹890.9 billion ($10.4 billion), down 0.7% YoY, primarily due to softness in IT services.
- IT Services Revenue: IT services revenue totaled $10,511.5 million, a 2.7% YoY decline (2.3% in constant currency), reflecting cautious client budgets amid economic uncertainty.
- IT Products Revenue: The segment recorded ₹2.7 billion ($31.5 million), down from ₹4.1 billion in FY 2024, consistent with a strategic shift toward services.
Profitability Metrics
- Net Income: Net income for FY 2025 grew 18.9% YoY to ₹131.4 billion ($1,537.0 million), driven by margin improvements and operational efficiencies.
- IT Services Operating Margin: The full-year margin expanded to 17.1%, a 0.9% improvement YoY, demonstrating Wipro’s focus on profitability.
- EPS: Annual EPS rose 20.3% YoY to ₹12.6 ($0.15), bolstered by higher profits and the bonus share issuance.
Bookings Growth
- Total Bookings: FY 2025 total bookings reached $14.3 billion, down 3.8% YoY, reflecting a mixed demand environment.
- Large Deal Bookings: Large deal bookings grew 17.5% YoY to $5.4 billion, underscoring Wipro’s strength in securing transformative contracts.
QoQ and YoY Comparison
Revenue
- QoQ: The 0.8% growth in gross revenue QoQ was driven by IT services stabilization, with Americas 1 showing a 0.3% uptick. However, Europe (-3.3%) and IT services overall (-1.2%) saw declines, reflecting seasonal softness and client caution.
- YoY: The 1.3% YoY gross revenue growth was led by Americas 1 (+5.4%), while Europe (-8.3%) and APMEA (-7.3%) lagged, impacted by macroeconomic headwinds. IT services revenue fell 2.3% YoY, signaling a broader industry slowdown.
Profitability
- QoQ: Net income grew 6.4% QoQ, supported by stable margins and higher other income (₹11.9 billion vs. ₹10.0 billion in Q3). Margin stability at 17.5% reflects cost discipline.
- YoY: The 25.9% YoY net income surge was fueled by a 1.1% margin expansion and a 75.6% increase in finance and other income (₹11.8 billion vs. ₹6.8 billion in Q4 FY 2024).
Bookings
- QoQ: Total bookings rose 13.4% QoQ, with large deal bookings maintaining momentum, indicating strong pipeline conversion.
- YoY: The 48.5% YoY surge in Q4 large deal bookings highlights Wipro’s competitive edge in securing high-value, multi-year contracts.
Strategic Deal Wins
Wipro’s Q4 deal wins reflect its focus on AI, cloud, and digital transformation:
- Phoenix Group (UK): A 10-year deal to deliver life and pension administration services, leveraging AI and automation to modernize operations.
- North American Financial Institution: Wipro will consolidate technology vendors, enhancing efficiency and cost savings through a global delivery model.
- European Appliance Manufacturer: Wipro will deploy AI-driven solutions to transform IT infrastructure, improving cybersecurity and operational efficiency.
- U.S. Health Insurer: Extended engagement to automate financial reconciliation using Wipro’s Medicare platform, ensuring compliance and scalability.
- U.S. Utility Company: Establishment of a GenAI Center of Excellence to drive AI innovation in logistics and asset management.
These wins span banking, insurance, healthcare, manufacturing, and utilities, showcasing Wipro’s diversified portfolio and AI capabilities.
Operational Metrics
- Headcount: Total headcount stood at 233,346, slightly up from 232,614 in Q3 FY 2025, with voluntary attrition stable at 15.0% on a trailing 12-month basis.
- Utilization: Net utilization (excluding trainees) was 85.6%, down from 86.9% in Q4 FY 2024, reflecting investments in talent.
- Offshore Revenue: Offshore revenue accounted for 60.1% of IT services, consistent with Wipro’s cost-effective delivery model.
Outlook for Q1 FY 2026
Wipro expects IT services revenue for the quarter ending June 30, 2025, to range between $2,505 million and $2,557 million, implying a sequential decline of 3.5% to 1.5% in constant currency. This cautious guidance reflects ongoing macroeconomic uncertainty and seasonal trends, with CEO Srini Pallia emphasizing close client partnerships to navigate challenges.
Analyst Recognition
Wipro’s leadership in digital transformation was recognized in multiple industry reports:
- Horizon 3-Market Leader in HFS Horizons: Generative Enterprise Services, 2025.
- Leader in Everest Group’s Managed Detection and Response Services PEAK Matrix 2025.
- Leader in ISG Provider Lens for Power & Utilities, Oil & Gas, Healthcare, and Advanced Analytics, 2024.
- Leader in Gartner’s 2025 Magic Quadrant for Outsourced Digital Workplace Services.
These accolades validate Wipro’s expertise in AI, analytics, and industry-specific solutions.
Conclusion
Wipro’s Q4 and FY 2025 results reflect a balanced performance, with strong net income growth, margin expansion, and robust large deal bookings offsetting revenue softness. The 48.5% YoY surge in Q4 large deal bookings and strategic wins in AI-driven transformation position Wipro for long-term growth. Despite a cautious revenue outlook for Q1 FY 2026, Wipro’s focus on profitability, operational efficiency, and innovation ensures it remains competitive in a dynamic market. As Srini Pallia noted, “We’re focused on partnering closely with clients while staying committed to consistent and profitable growth,” a strategy that bodes well for Wipro’s future.
Note: All financial figures are based on IFRS reporting unless stated otherwise, with USD conversions using the exchange rate of $1 = ₹65.43 as of March 31, 2025.
Disclaimer: The views expressed in this article are those of the author and are based on available data and market observations. This is not intended as investment advice. Investors should conduct their own research or consult a financial advisor before making any investment decisions.