Wipro Q4 Results Preview: PAT may rise 16% YoY; margins to be stable

Deterioration in demand will lead to revenue decline for Wipro in constant currency terms in the fourth quarter. The drop will be more or less towards the lower end of -1 to 1% range of guidance.

Consolidated revenue from operations during the January-March 2024 period is seen rising by a marginal 2% year-on-year (YoY), according to an average estimate of six brokerages. The CC revenue decline is expected to be around 0.4%. Net profit during the reporting period is likely to jump 16% YoY, the estimates revealed.

For the fourth quarter, margins are expected to remain in a narrow band, with no significant headwinds anticipated. Wage hikes are behind and fully absorbed in the preceding third quarter.


Investor focus will be on state of discretionary spending by clients in light of recent macro deterioration and spending in financial services accounts noting Wipro's high discretionary exposure to the vertical

Here's what analysts expect from Wipro's Q4

Nomura

We expect revenues to decline 0.4% QoQ in cc as against its guided band of - 1% to 1% for 4Q. We expect WPRO to guide for -1.5% to +0.5% revenue growth in 1Q FY26F (in cc).

We expect EBIT margins to remain stable QoQ.

Key things to watch out for - commentary on consulting business (particularly in BFSI vertical), client specific issues in BFSI vertical, large deal pipeline and outlook on client discretionary spend.

Motilal Oswal

Wipro is likely to report flat revenue in 4Q (midpoint of its 4Q guidance) as softness may persist in Energy, Manufacturing and Resources, along with Europe and APMEA regions.

BFSI may perform better sequentially due to uptick in budgets and Capco business. Healthcare will also grow, but slower than in the past.

Key monitorables include commentary on recovery in Europe region also Energy, Manufacturing and resources verticals.

Nuvama

We expect IT Services revenue growth of -0.4% QoQ in CC and -1.0% QoQ in USD. Margins are likely to largely remain flat QoQ. We expect Wipro to give -1% to +1% CC QoQ revenue growth guidance for Q1FY26. Will look for update on consultancy business and deal execution

Kotak Equities

We forecast a stable EBIT margin with benefit from rupee depreciation, offset by lack of operating leverage/revenue decline. We expect a large deal TCV to be in the $1.6-1.8 billion range, taking into consideration the Phoenix mega-deal.

We expect a revenue guidance range of -0.5% to +1.5% for the June 2025 quarter.

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