Wipro surges with Rs 1,537cr profit in FY25 as AI mega deals offset revenue dip — can it keep the momentum?

How Did Wipro Achieve Strong Profit Growth In FY25 Despite Revenue Pressure?

Wipro Limited closed FY25 on a strong earnings note, reporting an 18.9% year-on-year increase in net income even as annual revenues declined slightly. The performance reflects the Bengaluru-based technology company’s strategic pivot towards high-value deals, a disciplined operational model, and increasing deployment of AI-led transformation services. The results for both the quarter and fiscal year ended March 31, 2025, underscore Wipro’s continued ability to generate strong returns and expand margins despite global economic headwinds and sluggish demand across the broader IT services industry.

The company’s reported net income stood at ₹131.4 billion, or approximately $1.54 billion, driven by expanding IT services operating margins and consistent cash flow conversion. Wipro also strengthened its business pipeline through aggressive pursuit of large deal bookings, registering a 48.5% year-on-year increase in such contracts in Q4 alone. That effort brought the full-year large deal total to $5.4 billion, up 17.5% compared to FY24.

What Were The Key Takeaways From Wipro’s Q4 FY25 Financials?

In the final quarter of FY25, Wipro posted gross revenue of ₹225.0 billion ($2.63 billion), reflecting modest sequential growth of 0.8% and an annual increase of 1.3%. However, its core IT services segment saw revenue contract by 1.2% quarter-on-quarter and 2.3% year-on-year in reported currency, with a slightly lower decline of 1.2% in constant currency. These figures point to ongoing pressure on discretionary IT spending and delayed decision-making by enterprise clients.

Despite that, the company delivered strong operational performance, with its Q4 IT services margin holding steady at 17.5%—a year-on-year expansion of 110 basis points. Net income rose to ₹35.7 billion ($417.8 million), marking a sequential rise of 6.4% and an annual jump of 25.9%. Earnings per share for the quarter rose to ₹3.4 ($0.041), also up more than 25% year-over-year. Voluntary attrition for the quarter was down to 15.0%, showing improvement in workforce stability.

How Did Wipro Perform Over The Full Financial Year?

For the full year ended March 31, 2025, Wipro recorded gross revenue of ₹890.9 billion ($10.4 billion), a marginal decline of 0.7% year-on-year. IT services revenue for the year stood at $10.51 billion, down 2.7% in reported terms and 2.3% in constant currency, indicating headwinds from slower client spending in key global markets.

However, profit margins were up for the year, with IT services operating margin rising to 17.1%, up 90 basis points compared to FY24. Wipro maintained strong financial discipline and execution efficiency, which helped the company convert 128.2% of its net income into operating cash flow—totalling ₹169.4 billion ($1.98 billion). This level of performance places Wipro among the few Indian IT firms to sustain margin expansion in a year marked by global economic uncertainties and weak technology demand.

What Strategic Deals Helped Wipro Offset Revenue Weakness?

Wipro’s push into large, multi-year, and high-value technology contracts helped offset some of the top-line weakness. Notable wins in Q4 FY25 spanned industries such as insurance, healthcare, utilities, finance, and manufacturing. In a standout deal, the UK-based Phoenix Group selected Wipro to transform its ReAssure life and pension administration business under a 10-year agreement. The contract includes end-to-end administration and modernization of the ALPHA platform using automation, AI, and cloud technologies—aligning with Wipro’s broader goal to establish a platform-led Insurance TPA business.

In North America, Wipro secured a major contract from a financial institution to unify and manage its technology infrastructure, consolidate vendors, and implement a global delivery model. The client expects improved service efficiency and substantial cost savings. Similarly, a US-based healthcare payer extended its engagement with Wipro for end-to-end automation using the company’s SaaS-based Medicare platform. This builds on Wipro’s strategy to use AI tools and vertical platforms to deepen client engagements.

Wipro also secured significant business from clients in Europe and Australia. These deals included modernizing IT landscapes, implementing AI-based service desks, cloud infrastructure support, and AI-powered cybersecurity services. The emphasis across these engagements was on driving cost efficiency, operational automation, regulatory compliance, and better visibility into business systems—priorities that are increasingly shaping enterprise IT budgets in 2025.

What Guidance Has Wipro Provided For Q1 FY26?

For the quarter ending June 30, 2025, Wipro expects its IT Services segment revenue to be in the range of $2,505 million to $2,557 million. This translates to a sequential decline of between 1.5% and 3.5% in constant currency. The muted outlook is in line with broader market expectations, as the IT sector continues to grapple with delayed client decision-making, cautious capital allocation, and project deferrals. The guidance also reflects the impact of the continued recalibration of tech spending across geographies, especially in the US and Europe.

How Are Analysts And Investors Reacting To Wipro’s FY25 Performance?

Despite the strong margin and profit figures, Wipro’s stock declined sharply after the results announcement, as markets focused on the soft revenue guidance for Q1 FY26. On April 17, 2025, Wipro’s shares fell 4.34% to close at ₹236.90. Market analysts flagged the cautious near-term outlook as a concern, with some brokerages revising their price targets downward. Centrum Broking downgraded the stock to ‘Reduce’, adjusting its price target from ₹291 to ₹250 based on weaker demand visibility and continued softness in key segments.

However, there has been positive institutional interest. During the March 2025 quarter, Foreign Institutional Investors (FIIs) increased their stake in Wipro from 7.81% to 8.35%, signaling long-term confidence in the company’s margin strategy and deal momentum. In contrast, Domestic Institutional Investors (DIIs) trimmed their holdings slightly from 10.7% to 10.3%, reflecting some caution over Wipro’s near-term execution.

In the broader context, the Nifty IT index has fallen about 24.8% year-to-date, underlining the widespread impact of economic uncertainty on Indian IT companies. In that environment, Wipro’s ability to grow profit and improve margin while sustaining high-quality deal wins positions it favourably—though the lack of revenue acceleration limits a more bullish sentiment.

Why Wipro’s Strategic Shift Toward AI And Platform-Led Delivery Is Key

As the technology sector enters a new growth cycle driven by generative AI, hyper-automation, and platform consolidation, Wipro is positioning itself to lead in these emerging areas. The company’s expansion into large-scale AI-powered solutions across healthcare, utilities, insurance, and cybersecurity reflects its evolving value proposition. Its investment in GenAI Centers of Excellence, AI-Ops platforms, and industry-specific solutions like “Payer-in-a-box” provides a differentiated edge in a consolidating IT services landscape.

From a stock market perspective, Wipro remains a hold for many institutional investors, given its strong capital efficiency, dividend discipline, and robust deal pipeline. However, unlocking share price upside will require clearer signs of top-line acceleration and increased client confidence. Investors will closely monitor execution in the coming quarters as Wipro navigates a transitioning industry while focusing on high-margin, AI-centric engagements.