Wipro Q4 preview | Healthy volumes, ramp-up in deals to boost revenue, but margin may contract

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26 Aug, 2025 12:21

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IT services company Wipro will release quarterly earnings on April 15. The company is likely to report healthy growth in topline driven by volumes and ramp-up in deals, however, margin performance may get dented by wage hikes for the quarter ended March 2021.

The revenue growth in the constant currency could be around 3 percent and the same in dollar terms may be around 3.5 percent for the quarter, according to brokerages.

"Wipro is expected to report 3.0 percent QoQ growth (in CC terms) in revenues mainly led by healthy volumes in small & medium deals and ramp-up of deals. Further, with cross-currency tailwinds, we expect dollar revenues to increase 3.9 percent QoQ," said ICICI Direct which sees a 3.5 percent QoQ decline in profit for the quarter.

The software services exporter had forecasted revenue growth in the range of 1.5-3.5 percent QoQ in constant currency terms for March quarter 2021.

Prabhudas Lilladher also expects strong revenue growth of 3 percent in constant currency led by a ramp-up in large deals in the earlier quarter. "Q4 is a seasonally strong quarter for Wipro. We expect strong growth from the cloud & infra business. Vertical wise, we expect a broad-based recovery with retail & BFSI outperforming," said the brokerage.

The brokerage expects Wipro to guide for 1-3 percent QoQ constant currency revenue growth for Q1FY22.

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Wipro shares gained 8.5 percent so far in 2021, outpacing the benchmark Nifty IT index, which registered 6.6 percent gains in the same period.

On the operating front, the margin is expected to contract sequentially for the March quarter on account of wage hikes.

"EBIT margins in global IT services are expected to decline 148 bps QoQ mainly due to wage hike and lower utilisation," said ICICI Direct.

Key things to watch out for would be the progress on Capco acquisition, any other wage hike, demand commentaries of key verticals, deal pipeline, commentary of client's IT Budget and execution of past large deals.