Wipro reports 25.9% increase in net profit amid cautious Q1FY26 forecast

Wipro reported a 25.9% year-on-year rise in consolidated net profit for the March quarter, reaching Rs 3,569.6 crore. However, the company has issued a cautious forecast for the upcoming quarter, with IT services revenue expected to fall by up to 3.5% in Q1FY26, amidst ongoing global uncertainties.

CEO and managing director Srini Pallia said that while the demand for tech re-invention remains strong, clients are approaching the market with caution due to macroeconomic factors. He added, "As clients remain cautious in the face of macroeconomic uncertainty, we’re focused on partnering closely with them while staying committed to consistent and profitable growth."

For the fourth quarter of FY25, the Bengaluru based IT giant’s revenues stood at Rs 22,504.2 crore, reflecting a modest increase of 1.33% from the previous year. Net profit for the period was up 25.9% compared to Q4FY24, with earnings per share (EPS) increasing by 25.8% year-on-year, reaching Rs 3.4 (USD 0.04).

Despite these positive results, the company is bracing for a challenging Q1FY26. Wipro has forecasted a revenue range of $2,505 million to $2,557 million for its IT services business, marking a sequential decline of 1.5-3.5% in constant currency terms.

The company’s outlook comes amid global uncertainties, notably the fluctuating US tariffs that have disrupted international markets. Pallia commented, "The global industry environment remained uncertain for most of the year. And, of course, the recent tariff announcements have only added to that. Even though the underlying demand for the tech re-invention remains strong, our clients are approaching it more cautiously."

Despite the forecasted dip, Wipro has managed to secure two large deals, expand its top accounts, and increase its large-deal bookings, underscoring its strategic focus on growth. Pallia also highlighted that client satisfaction scores have improved, reflecting the company’s strong execution and engagement.

In terms of workforce growth, Wipro’s employee count has seen a slight rise to 2,33,346, compared to 2,32,614 the previous year. The company has maintained a steady approach to hiring, with chief human resources officer Saurabh Govil confirming that it met its hiring target for FY25, recruiting approximately 10,000 new employees.

Wipro’s chief financial officer, Aparna Iyer, pointed to the company’s focus on operational efficiency, saying, "our focus on execution rigour has ensured that our margins have steadily expanded even in a softening revenue environment. Our endeavour will be to maintain the margin in a narrow band in the coming quarters."

As part of its FY25 results, Wipro declared an interim dividend of Rs 6, which will be considered as the final dividend for the financial year.

Wipro is the second largest Indian tech company to announce its results in the ongoing Q4 earnings season, following Tata Consultancy Services (TCS), which posted its report last week. TCS also flagged challenges related to global economic pressures, including a 1.7% decline in its Q4 net profit.

As both companies navigate these uncertainties, the coming quarters are expected to be challenging for the Indian IT sector, with analysts closely monitoring the impact of global trade tensions and slowing demand for tech services.