Wipro is likely to see little to no growth in revenue in the January-March quarter due to sustained weakness in critical sectors such as manufacturing and energy, according to analysts estimates.
The company will announce its earnings for the fourth quarter on April 16. Analysts said that the results will serve as a barometer for the state of discretionary tech spending and will offer cues about its trajectory heading into FY26.
According to Motilal Oswal Financial Services, Wipro’s January-March revenue is likely to remain flat on a sequential basis, placing it near the midpoint of its guided range of minus 1% to plus 1%. According to the brokerage, sluggish demand is likely to continue across the energy, manufacturing, and resources verticals, especially in the Europe and APMEA (Asia Pacific, Middle East, and Africa) markets. However, a slight pickup is expected in segments like BFSI (banking, financial services and insurance) and healthcare. The BFSI vertical may benefit from improved budget allocations and gains from Wipro’s consulting arm, Capco, while healthcare is anticipated to grow, albeit at a slower pace than in previous quarters.
According to ICICI Securities, a marginal 0.8% revenue increase in constant currency terms is expected, supported by continued momentum in the BFSI and healthcare verticals. However, the brokerage pointed out that a key BFSI client in Europe is continuing its ramp-down, weighing on overall performance.
Year-on-year comparisons offer a slightly more optimistic view, with brokerages forecasting a moderate rise in revenue. HDFC Institutional Equities expects sales to increase by 2.1% to Rs 22,672 crore, while InCred Equities and Nuvama estimate 2.5% and 1.3% growth, respectively.
Operating margins are predicted to stay within a stable range, with no major cost pressures anticipated for the quarter. Motilal Oswal expects margins to hold between 17.0% and 17.5%, citing the full absorption of wage hikes in the previous quarter. InCred Equities and Nuvama also foresee Ebit margins at 17.5% and 17.6%, respectively. Kotak Institutional Equities noted that benefits from a weaker rupee would likely be neutralised by limited operating leverage due to stagnant revenues.
One of the few bright spots remains Wipro’s deal wins. Analysts are optimistic about large contract signings, particularly the £500 million Phoenix Group deal. ICICI Securities and Kotak Institutional Equities both estimate total contract value (TCV) in the $1.6–1.8 billion range for the quarter.
Wipro’s guidance for the June quarter is expected to remain cautious amid global macroeconomic uncertainty. Most brokerages predict a constant currency growth range of -1% to 1% for the April-June quarter of FY26, mirroring the fourth quarter trends.
Analysts are expected to keenly track the management commentary on client budgets, demand for Capco’s services, and the implications of recent US policy changes on spending behaviour.