Wipro Q4 Results: Profit Jumps 26%, Revenue Up 1%

Wipro

Wipro Q4 FY25 Results: Net Profit Soars 26% While Revenue Grows Marginally; Dividend, Outlook, and Market Insights

Wipro Ltd., one of India’s leading information technology (IT) services companies, has released its financial results for the fourth quarter ended March 31, 2025.

The results reflect a solid performance on the profitability front, despite only marginal growth in top-line revenue, indicating the company’s focus on operational efficiency and cost control amid an evolving market landscape.

Robust Growth in Profitability

Wipro delivered a strong bottom-line performance for the March 2025 quarter, reporting a consolidated net profit of ₹3,588.1 crore, which represents a 25.5% year-on-year increase compared to ₹2,858.2 crore in the corresponding quarter last year.

The profit attributable to equity holders stood at ₹3,569.6 crore, marking a 25.9% growth from ₹2,834.6 crore in Q4 FY24.

This growth in profitability, outpacing the company’s revenue expansion, highlights Wipro’s focus on maintaining healthy margins through operational efficiencies and disciplined cost management.

Revenue Growth Remains Tepid

While profits surged, consolidated revenue from operations registered only a modest year-on-year increase of 1.33%, rising to ₹22,504.2 crore, up from ₹22,208.3 crore in the same quarter last year.

This tepid growth in revenues underscores the global headwinds faced by IT services companies, including cautious enterprise spending, delays in decision-making cycles, and macroeconomic uncertainties in key markets such as the US and Europe.

However, the fact that the company has managed to deliver improved profits despite subdued revenue growth indicates resilient execution and a strong grip on operating costs.

Stable Cost Structure

During the quarter, Wipro’s total expenses were ₹18,978.6 crore, virtually unchanged from the ₹18,978.8 crore incurred during the same period last year.

This indicates that the company has been successful in containing costs even as it navigates through a dynamic operating environment.

The stable expense structure, when coupled with only a slight revenue uptick, has helped the company drive a notable expansion in profit margins for the quarter.

Final Dividend Declaration

In terms of shareholder returns, Wipro has declared that the interim dividend of ₹6 per equity share, which was announced on January 17, 2025, will be considered the final dividend for the financial year 2024–25. The record date for this dividend was January 28, 2025.

This move is consistent with Wipro’s long-standing policy of rewarding shareholders while maintaining a prudent capital allocation strategy.

The decision not to announce an additional final dividend may also reflect a cautious approach amid a relatively muted growth environment.

IT Services Revenue Guidance

Looking ahead, Wipro has provided guidance for its IT services revenue for the first quarter of the financial year 2025–26 (April–June 2025).

The company expects revenue from this segment to be in the range of $250.5 million to $255.7 million, which will be closely watched by analysts and investors as an indicator of demand recovery and client spending behavior.

Wipro’s IT services business remains the core of its operations, contributing a significant portion of overall revenue.

The guidance reflects modest expectations, indicating that the company anticipates continued headwinds in the short term but is also positioning itself for steady, albeit slow, growth.

Stock Market Performance: Mixed Sentiment

On April 16, 2025, Wipro’s stock closed in the green, ending the day at ₹247.50 on the BSE, registering a gain of over 1%.

The company’s current market capitalization stands at approximately ₹2.59 lakh crore, making it one of the largest IT companies in India by market value.

However, despite the positive Q4 results, Wipro’s stock performance over the year has been mixed:

• The stock has declined 17% year-to-date in 2025
• It has fallen 14% over the last three months
• Interestingly, it has rebounded 4% over the past week, suggesting a short-term revival in investor sentiment, possibly buoyed by the latest results

This volatility reflects the broader sectoral trends where global IT services companies have been under pressure due to macroeconomic uncertainties, shrinking client budgets, and evolving digital transformation strategies.

Promoter Holding Remains Strong

As of the quarter ending March 2025, promoters held a 72.73% stake in the company, reflecting continued confidence in the long-term prospects of the business.

Strong promoter holding is often seen as a positive signal by investors, as it indicates the commitment of founding stakeholders toward the company’s growth trajectory.

Strategic Focus and Outlook

Wipro, under its current leadership, continues to invest in key growth areas such as cloud, cybersecurity, AI, and digital transformation services.

While the Q4 FY25 results reflect some pressure on revenue growth, the strong improvement in profitability and focus on margin preservation suggest that Wipro is prioritizing long-term sustainability over short-term scale.

Going forward, the company’s performance will depend heavily on global economic conditions, enterprise IT spending trends, and its ability to execute large digital transformation deals across geographies.

Additionally, investor focus will be on Wipro’s deal pipeline, client retention, and strategic initiatives in high-growth markets, particularly in North America, which remains a major revenue contributor.

Final Remarks

Wipro’s Q4 FY25 earnings report paints a picture of a company that is navigating a challenging global IT landscape with resilience.

While revenue growth remains muted, the significant rise in net profit and disciplined cost structure are clear positives.

The stock may continue to experience near-term volatility given broader market dynamics, but the strong promoter confidence, healthy dividend payout, and cautious yet stable outlook offer investors reasons for optimism.

As the company steps into FY26, stakeholders will be watching closely to see whether Wipro can accelerate revenue growth while maintaining its profitability momentum in a competitive and rapidly evolving tech environment.