Wipro lowers Q1FY26 revenue guidance amid market uncertainty

Wipro reported 6.4% sequential climb in net profit to Rs 3,569.6cr for the quarter that ended March 2025.

Revenue Outlook Weakens for Q1FY26

Indian IT major Wipro has revised its revenue guidance for the first quarter of FY26 (ending June 30, 2025), projecting a decline of -1.5% to -3.5% in constant currency terms. This marks a deterioration from its previous quarter’s guidance of -1% to +1%, reflecting growing headwinds in the technology services market.

For Q4FY25, Wipro had guided a sequential revenue range of -1% to +1%, though the company did not explicitly state whether it met this target.

Margins Improve Despite Sluggish Growth

Despite the soft revenue environment, Wipro delivered margin improvements, a point emphasized by Chief Financial Officer Aparna C Iyer.

“For Q4, operating margins expanded 110 basis points year-on-year, and for the full financial year, margins improved by 90 basis points,” Iyer noted.

“Our focus on execution rigour has ensured steady margin growth, even amid revenue softness.”

Wipro’s operating margin for Q4FY25 stood at 17.5%, marking a 1.1 percentage point increase compared to the same quarter last year.

Strategic Wins and Client Engagement

CEO Srinivas Pallia highlighted key business wins and growing client trust despite macroeconomic uncertainty.

“We closed FY25 with two mega deal wins, a boost in large deal bookings, and growth in top client accounts. Our improved client satisfaction scores reflect strong execution,” he said.

“As clients remain cautious, we are staying focused on close partnerships while investing in talent, consulting, and AI capabilities.”

Wipro reported total bookings of $3.96 billion, up 13.4% QoQ in constant currency, and large deal bookings of $1.76 billion, a 48.5% YoY increase. These figures are notably higher than the $3.51 billion in total bookings and $961 million in large deals in the prior quarter.

Profit and Revenue Snapshot

For the quarter ended March 2025:

• Net profit rose 6.4% sequentially to ₹3,569.6 crore
• Gross revenue increased slightly to ₹22,504.2 crore

Despite market uncertainties and tepid revenue growth, Wipro is banking on its focus on operational efficiency, strategic deal wins, and investments in next-gen capabilities to drive future performance.