Wipro Q4 earnings today: Here is what to watch out for

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26 Aug, 2025 12:21

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Wipro, one of India’s top four IT services companies, is expected to report a 3.2-4 percent growth in profit for the quarter ended March. On a sequential basis, earnings may improve 3.6-4.2 percent.

Analysts expect Bengaluru-based Wipro to register on-year growth of 26-28 percent in revenue on April 29, when it declares results for the quarter and year ended March. Compared to the previous quarter, revenue may grow 2-2.8 percent.

The company, controlled by billionaire founder chairman Azim Premji, is likely to post a profit of Rs 3,070 crore for the quarter and revenue of Rs 20,700 crore-21,000 crore.

“Revenue growth will be powered by continued strength in discretionary spends and success in mining of large accounts,” Kotak Institutional Equities said in a report.

Brokerages expect Wipro’s dollar revenue to grow 3-3.3 percent sequentially and ~26 percent on-year. Constant currency revenue growth is expected at 3-3.5 percent.

“We forecast constant currency revenue growth of 3.5 percent, in the 2-4 percent guidance band. Revenues include a 40 bps contribution from Edgile and LeanSwift acquisitions,” Kotak Institutional Equities added.

EBIT margin

Wipro acquired US companies Edgile, a cybersecurity consulting provider, and LeanSwift, a provider of e-commerce and mobile solutions, in December last year.

Analysts expect the EBIT (earnings before interest and tax) margin to decline sequentially as well as on-year due to higher travel and employee expenses, though that will be partially negated by better operating leverage. The EBIT margin for Q4 is likely at 17.3 percent compared to 21 percent a year earlier.

Experts said key aspects will be the impact of recent global events, including the Russia-Ukraine conflict, on business, especially that of Europe-focused Capco. Wipro acquired London-based Capco, a management and technology consultancy firm, over a year ago.

It will also be important to identify the levers to defend margins, noting the potential increase in cost structure and wage pressure.

Measures to staff projects and handle supply-side challenges, given the high rate of employee attrition, are the other important aspects that need to be keenly watched, along with the ability to get price increases to offset cost pressures and the pipeline of mega deals that seems to have dried up for the sector.

Global brokerage Phillip Capital will focus on “Q1 guidance, impact of geopolitics on EU demand, large deal wins & pipeline and outlook on healthcare & energy verticals.”

Nomura Global Markets will watch for commentary on demand and salary hike outlook for onshore and offshore locations.

Wipro shares gained 0.7 percent to Rs 522.50 at the close on the National Stock Exchange on April 28. The stock has generated returns of 7 percent during the past year but has declined 13 percent in the past month.

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