Discretionary spending coming back in the BFSI vertical, says Wipro

This is in contrast to what the information technology (IT) sector, in general, and Wipro, in particular, is facing with overall discretionary spending remaining elusive.

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26 Aug, 2025 12:21

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Wipro Ltd said it is seeing an uptick in discretionary spending within the Banking, Financial Services, and Insurance (BFSI) vertical, despite a cautious overall demand environment.

"...discretionary spending is coming back, at least in the banking and financial services and it's also reflected in our BFSI growth sequentially as well," Chief Executive Officer Srinivas Pallia said in a post-earnings conference call.

This is in contrast to what the information technology (IT) sector, in general, and Wipro, in particular, is facing with overall discretionary spending remaining elusive.

The statement is backed by data that shows that the BFSI segment's contribution increased to 34 percent in Q1 FY25 from 33.5 percent in the quarter-ago period. For the quarter ended June 30, the segment grew 0.3 percent sequentially.

Also Read | Wipro’s headcount increases by 337 in Q1, reverses decline after six quarters

The company also highlighted the fact that the BFSI vertical achieved sequential growth for two consecutive quarters.

The BFSI vertical is one of the few verticals that were not impacted as much as others in Q1FY25, data shows. Consumer and Technology were the only other verticals that showed improvement sequentially, out of the seven verticals in which the company operates.

BFSI vertical's performance was reflected in the large deal bookings the company booked during the June quarter, which stood at $1.2 billion. Nonetheless, Wipro's total deal wins fell sequentially to $3.6 billion, when compared to $3.8 billion it won in the previous quarter.

"We recorded another quarter of total large deal bookings over $1 billion, with our largest win in the recent years. Our top accounts continued to grow, accompanied by a growth in Americas 1 SMU, BFSI and Consumer sectors," Wipro's new CEO Srinivas Pallia said.

Shares of Wipro ended 2.8 percent lower at Rs 557 on July 19. The stock has risen over 16 percent so far in 2024.

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