Wipro posts 26% rise in Q4 FY25 net profit, but outlook remains subdued

Wipro, one of India's leading IT services companies, has registered a 26% rise in net profit for the fourth quarter (Q4) of FY25. However, its revenue outlook remained subdued.

The net profit for Q4 FY25 stood at Rs 3,570 crore, compared to Rs 2,835 crore in the similar period a year ago. Revenue for the quarter stood at Rs 22,504 crore, which was just a 1.3% year-on-year (YoY) growth.

However, the company provided a downcast outlook on revenue for the first quarter of FY26 as it projected a de-growth in the range of -3.5% to -1.5%. Wipro expects the revenue for Q1 FY26 to be in the range of $2505 million to $2557 million. In the fourth quarter, it reported $2596.5 million.

“The present macroeconomic environment has created a lot of uncertainties for our clients,” Wipro CEO Srini Pallia said. "This uncertainty has led to a slowdown in the spending on technology by clients while at the same time, they are looking at how to bring down their costs," the CEO remarked.

On the positive side, Wipro said its large deals engine continues to expand, and it had a total contract value of $1.8 billion at the end of the fourth quarter.

The company has also seen improvement in its operating profit margin. At the end of Q4 FY25, it stood at 17.5%, compared to 16.4% a year ago.

Wipro CFO Aparna Iyer said, “For Q4, operating margins expanded 110 basis points year on year, and for the full financial year, margins expanded by 90 basis points. Our focus on execution rigour has ensured that our margins have steadily expanded even in a softening revenue environment. Our endeavour will be to maintain the margin in a narrow band in the coming quarters.”

On the headcount front, Wipro ended the fourth quarter with an employee base of 233,346, adding only 614 people compared to the third quarter.

For FY25, Wipro reported a revenue of Rs 89,088 crore, a marginal decline compared to Rs 89,760 crore for FY24. The net profit for FY25 came in at Rs 13,135 crore, compared to Rs 11,045 crore in FY24, which was an 18.9% increase.

The Wipro CEO remarked, “Driving consistent profitable growth is a clear priority.”