The country’s fourth-largest IT services firm, Wipro on Wednesday, beat analyst expectations on the profit front in the January-March quarter, but failed to meet revenue estimates, highlighting continued demand weakness in the global IT services sector.
While the company’s bottom line improved sequentially, the topline performance and its muted guidance for the first quarter of FY26 point to ongoing macroeconomic challenges and client caution.
For the quarter ended March, Wipro reported a consolidated revenue of Rs 22,504.2 crore, up 0.8% on a sequential basis but below Bloomberg’s consensus estimate of Rs 22,684 crore. In contrast, net profit came in stronger at Rs 3,570 crore, rising over 6% quarter-on-quarter and surpassing street expectations of Rs 3,350 crore. The operating margin stood at 17.5%, unchanged from the previous quarter.
Despite the modest sequential gains, the company struck a cautious tone for the months ahead. For the April–June period, Wipro forecast a sequential revenue decline of 1.5% to 3.5% in constant currency terms, a more pessimistic range than the (-1%) to 1% guidance it had set for the March quarter.
“The global industry environment remained uncertain for most of the year. And of course, the recent tariff announcements have only added to that,” said Srini Pallia, Wipro’s chief executive officer and managing director, during the post-earnings press conference. “In addition to geopolitics, this year’s macro environment, especially in the context of tariffs, has created a lot of uncertainty for our clients. This varies across geographies and industries. Manufacturing and consumer segments, in particular, are feeling the heat,” he said.
Chief financial officer Aparna Iyer echoed the sentiment, noting that the company is navigating multiple headwinds. “We are faced with an uncertain macroeconomic environment that is putting downward pressure on revenues. That said, our endeavour will be to maintain margins within a narrow band in the coming quarters,” she said.
On the deal front, however, Wipro showed some strength. The company reported large deal wins worth $1.8 billion in the January-March quarter, a sharp rise from the near $1 billion figure in the December quarter. Overall, total deal bookings for the March quarter stood at $4 billion, up from $3.5 billion previously. For the full year FY25, Wipro closed 63 large deals with a cumulative value of $5.4 billion. The company classifies deals with a contract value of $30 million or more as large.
“We are continuing to see strong momentum in large deals,” Pallia said. “In fourth quarter alone, we closed 17 such deals across our markets and sectors,” he said.
Still, the positive deal momentum failed to lift investor sentiment in overseas markets. Wipro’s American Depository Receipts dropped over 6% on Wednesday on the New York Stock Exchange, even as its shares on the National Stock Exchange ended 1.5% higher at Rs 247.60.
On a sectoral basis, Wipro’s BFSI vertical, its largest revenue contributor, saw a 10-basis point rise in revenue share sequentially. The consumer sector, meanwhile, declined by 10 basis points. Manufacturing, energy, and resources posted a 40-basis point increase, while technology and communication fell 10 basis points and healthcare dropped 30 basis points.
Pallia said the impact of macroeconomic factors is not evenly distributed across industries. “Sectors like consumer and manufacturing are feeling the direct consequences of this uncertainty, while BFSI has remained resilient, especially in regions like APMEA and the US where Capco is playing a strong role,” he said.
Wipro also continued to highlight traction in the generative AI space. “Clients continue to invest in GenAI. There are plans to move from proof of concepts to actual projects in the coming years,” Pallia said. The company is also applying AI to drive internal efficiencies and improve customer experience.
Geographically, the company saw a 50-basis point sequential increase in its Americas 1 business, while Americas 2 remained flat. Revenue from Europe declined 60 basis points, and APMEA rose by 10 basis points.
“Our pipeline across markets, including the Americas and Europe, continues to be strong,” Pallia said. “The key variable we are watching is discretionary spending. Hopefully, upcoming developments around tariff settlements will give our clients more clarity to move forward,” he said.