Wipro meets Street estimates but guidance disappoints; 5 takeaways from Q1 results

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26 Aug, 2025 12:21

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Wipro declared its results for the quarter ended June 30 on Thursday which met D-Street estimates but guidance played a spoiler. Shares of IT major closed 0.7 percent lower at Rs269.15. 

“We delivered revenues above the upper end of the guidance range. Our focus on Digital combined with our investments in client mining have resulted in strong growth in Top accounts,” said Abidali Z  Neemuchwala, Chief Executive Officer and Member of the Board at Wipro said in a statement. 

“The brand refresh is reflective of the transformation we are driving at Wipro and how we are helping our customers in their digital journeys,” he said. 

 We have collated top five takeaways from Q1 results: 

Net Profit 

 India’s third largest software company reported 1.12 percent year-on-year (YoY) growth in net profit to Rs 2082.6 crore for the quarter ended June 30 compared to Rs2059 crore reported in the corresponding quarter of last fiscal.

IT Services Revenues 

Gross Revenues of Wipro Limited from IT services remained flat at Rs 13,025.6 crore for the quarter ended June 30, but was higher than CNBC-TV 18 poll of Rs 12,828 crore. Wipro Ltd reported an IT revenue of Rs 13,109.20 crore in the corresponding quarter of last fiscal. 

IT Services Segment Revenues in dollar terms were $1,971.7 million, a sequential increase of 0.9 percent (NonGAAP constant currency increase of 0.3% sequentially) and 2.1 percent YoY (Non-GAAP constant currency increase of 3.4% YoY).

Board approved Rs11,000 crore buyback:

The Board of Directors approved a buyback proposal, subject to the approval of shareholders through postal ballot, for purchase by the company of up to 343.75 million equity shares of Rs2 each (representing 7.06% of total equity capital) from the shareholders of the company on a proportionate basis by way of a tender offer. 

The buyback price will be Rs 320 per equity share payable in cash for an aggregate amount not exceeding Rs 110,000 million ($1.7 billion) which translates into a premium of 18 percent from Thursday’s closing price of Rs 269. 

Outlook: 

Wipro expects Revenues from our IT Services business to be in the range of $1,962 million to $2,001 million. The Street expects revenue from IT services business to be in the range of USD 1962-2001, a range of -0.5 to 1.5 percent, while the estimates were said to be 0-2 percent.

 Growth in Geographies: 

India and Middle East business grew 6.7 percent sequentially in reported currency while financial services grew 4.1 percent sequentially.