Wipro FY25 Annual Earnings Summary
4 quarters covered · ₹89,089 Cr revenue · ₹13,219 Cr PAT · 12.9% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q1 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q1 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY25Risks flagged during the year
Europe and APMEA markets declined sequentially, with Europe pipeline healthy but conversion weak; APMEA strategy under review.
Q2 FY25 · highEurope declined 0.1% QoQ due to weak demand and client-specific issues; management expects softness to persist in Q3.
Q2 FY25 · highManufacturing (-2%) and Energy & Utilities (-3.7%) remained weak; management cited pipeline but no timeline for recovery.
Q3 FY25 · highEnergy, manufacturing, and resources declined 8.7% YoY; consumer grew only 0.4% YoY. These segments represent ~36-38% of revenue and may hinder consistent growth.
Q4 FY25 · highManagement cited tariff-related uncertainty as a key factor driving client caution, leading to pauses in large transformation programs and delayed decisions on discretionary spend.
Q1 FY25 · mediumLarge deals signed in Q1 may take several quarters to fully ramp, limiting near-term revenue upside.
Q1 FY25 · mediumE&U vertical declined 6.3% sequentially due to end of large programs; recovery dependent on pipeline conversion.
Q2 FY25 · mediumCapco's consulting business is more susceptible to furloughs, which could weigh on Q3 growth despite strong momentum.
Q2 FY25 · mediumLarge deals take 2-3 quarters to ramp up; analyst flagged delayed conversion, though management expressed confidence.
Q3 FY25 · mediumLarge deal TCV was down sequentially, and management noted seasonal lumpiness. Conversion to revenue may be uneven.
Q3 FY25 · mediumEurope degrew 4.6% YoY and APMEA degrew 8% YoY. Management acknowledged challenges in these regions despite pipeline rebuilding.
Q3 FY25 · mediumCEO noted healthcare budgets may grow slower than in the past, which could impact a key growth driver.
What changed through the year
Q1 FY25 · Q2 FY25 Revenue Guidance: -1% to +1% QoQ CC
Management expects IT services revenue to change between -1% and +1% sequentially in constant currency for Q2 FY25.
Q1 FY25 · Margins to remain in narrow band with upward bias
Management expects operating margins to sustain within a narrow band with an upward bias in coming quarters.
Q2 FY25 · Q3 FY25 revenue guidance: -2% to 0% QoQ CC
Revenue expected to be $2.607B-$2.660B, impacted by seasonal furloughs and fewer working days.
Q2 FY25 · Margins expected to stay in narrow band in Q3
Despite headwinds from furloughs and salary increases, management confident of maintaining margins within a narrow band.
Q2 FY25 · Target operating margin band of 17%-17.5%
Q2 margin of 16.8% brings company closer to the aspirational band; revenue growth needed to sustain beyond 17%.
Q3 FY25 · Q4 FY25 Revenue Guidance: -1% to +1% QoQ in constant currency
Management expects IT services revenue to be between $2.602B and $2.655B in constant currency terms for Q4.
Q3 FY25 · Operating Margin to Stay in Narrow Band Around 17.5%
CFO stated confidence in sustaining margins in a narrow band around the current level for Q4.
Q3 FY25 · Capital Allocation Policy: 70%+ Payout Ratio from FY26
Board approved cumulative payout of 70% or more of net income over a three-year block starting FY26, via dividends and buybacks.
Q3 FY25 · Campus Hiring of 10,000-12,000 per Quarter Next Fiscal
CEO indicated plans to hire 10,000-12,000 freshers each quarter in the next fiscal year, alongside lateral hiring.
Q4 FY25 · Q1 FY26 Revenue Guidance: -3.5% to -1.5% sequential decline in CC
Management expects IT services revenue between $2.505B and $2.557B, reflecting a sequential decline of 1.5% to 3.5% in constant currency.
Q4 FY25 · Margins to be maintained in a narrow band
CFO stated endeavor to maintain operating margins in a narrow band in coming quarters, despite revenue headwinds.
Q4 FY25 · Fresher hiring to continue but cautiously
CHRO indicated plans to continue campus hiring but will monitor environment to avoid over-hiring, as seen in past.