Wipro Q4 Results: Net Profit Jumps 26%, Margins Improve

Wipro Ltd one of India’s top IT and consulting firms, reported its financial results for the fourth quarter and full year ended March 31, 2025. While revenue growth remained modest, profitability saw a sharp rebound driven by better operational margins and a significant rise in other income. This marks a potential turnaround for the Bengaluru-based IT major after several soft quarters.

Table of Contents

1. Wipro Q4 FY25 Financial Results: Revenue and Profit Overview
2. Wipro FY25 Full-Year Financial Performance
3. Key Financial Ratios and Valuation Highlights for FY25
4. Peer Comparison: Indian IT Majors in Q4 FY25
5. Operational Trends: Margins, EPS, and Other Income
6. Wipro Shareholding Structure as of March 2025
7. Strategic Focus: AI, Automation, and Profitability Drive
8. FY26 Outlook: Challenges and Growth Opportunities
9. Conclusion: Wipro’s Position Among Indian IT Leaders
10. FAQ

Wipro Q4 FY25 Financial Results: Revenue and Profit Overview

In Q4 FY25, Wipro reported a notable surge in net profit, while revenue growth stayed modest. Operational discipline and a rise in other income drove profitability to the highest level in eight quarters.

Q4 FY25 Financial Highlights

Wrap-up: Wipro’s sharp improvement in profitability, driven by margin gains and higher other income, signals early signs of operational turnaround, even as revenue growth remains subdued.

Wipro FY25 Full-Year Financial Performance

For the financial year ended March 31, 2025, Wipro posted steady profit growth, despite a marginal dip in revenue. Operational efficiencies and cost control efforts bolstered margins and earnings.

FY25 Full-Year Performance

Wrap-up: While revenue slightly declined, Wipro delivered solid earnings growth, validating its strategy of operational streamlining and cost optimisation.

Key Financial Ratios and Valuation Highlights for FY25

Wipro maintained strong financial ratios and a healthy balance sheet in FY25. The company’s valuation remains attractive compared to sector peers.

FY25 Key Financial Metrics

Wrap-up: Wipro’s steady return metrics and conservative leverage make it a fundamentally strong, low-risk IT stock, offering value at a reasonable valuation.

Peer Comparison: Indian IT Majors in Q4 FY25

In a mixed quarter for Indian IT services, Wipro stood out with the highest Y-o-Y profit growth, even as revenue growth lagged behind competitors like Infosys and HCL Tech.

Q4 FY25 Peer Performance

Wrap-up: Wipro’s profit momentum makes it a promising turnaround play, particularly given its relatively inexpensive valuation among top-tier IT peers.

Operational Trends: Margins, EPS, and Other Income

Operational improvement has been a highlight for Wipro, with operating margins rising steadily from 17% in September 2022 to 21% in Q4 FY25.

Key drivers included:

• Better resource utilisation
• Streamlined cost structures
• Favourable currency movement
• Sharp 86% Y-o-Y jump in other income

Wrap-up: Wipro’s margin recovery and operational discipline provide a firm base for future profitability, even in a weak demand environment.

Wipro Shareholding Structure as of March 2025

Wipro’s promoter group continues to hold a commanding 72.73% stake. Notably, FIIs raised their holding to 8.35%, signalling growing foreign investor interest.

Wrap-up: The rise in FII ownership suggests increasing global investor confidence in Wipro’s strategic initiatives and financial turnaround.

Strategic Focus: AI, Automation, and Profitability Drive

Wipro continued investments in AI-driven enterprise services and cloud capabilities. FY25 also saw successful execution of an internal restructuring, leading to leaner operations and a higher dividend payout ratio of 48%.

Wrap-up: Wipro’s focus on AI, digital transformation, and operational efficiency positions it well to capture emerging opportunities in FY26.

FY26 Outlook: Challenges and Growth Opportunities

Global IT spending remains under pressure, and Wipro’s revenue growth outlook is cautious. However, with ₹16,943 Cr in operational cash flows and a lean cost base, margin expansion and select digital deal wins remain achievable.

Wrap-up: While top-line challenges persist, Wipro enters FY26 on a stronger operational footing with margin headroom and solid financial stability.

Conclusion: Wipro’s Position Among Indian IT Leaders

Wipro’s FY25 results confirm a steady operational recovery and enhanced profitability. Its strong balance sheet, margin gains, and increasing investor confidence position the company to potentially outperform if it can reignite top-line growth.

Wrap-up: Wipro remains a cautious yet attractive opportunity in India’s IT services sector, with valuation comfort, operational momentum, and strategic clarity heading into FY26.

Frequently Asked Questions 

1. What was Wipro's net profit in Q4 FY25?

Wipro reported a consolidated net profit of ₹3,588 crore for the quarter ended March 31, 2025. This marks a strong 25.93% year-on-year (YoY) increase, making it the highest quarterly profit for the company in the last eight quarters.

2. How did Wipro perform in terms of revenue growth in FY25?

For the full financial year FY25, Wipro posted total revenues of ₹89,088 crore, showing a slight decline of 0.75% compared to ₹89,760 crore in FY24. While revenue growth remained muted, profit margins and earnings saw healthy improvement.

3. What is Wipro’s current P/E ratio, and how does it compare to IT industry peers?

Wipro’s Price-to-Earnings (P/E) ratio stands at 20.79 as of FY25 results. This is lower than peers like Infosys (25.28), HCL Tech (26.7), and LTIMindtree (35.13), making Wipro relatively undervalued among top-tier Indian IT services companies.

4. What were the key drivers of Wipro’s strong profitability in Q4 FY25?

The company’s improved Q4 profitability was driven by better operating margins (up to 21%), an 86% Y-o-Y surge in other income, effective cost optimisation initiatives, and operational efficiencies across verticals.

5. What are Wipro’s return ratios for FY25?

For FY25, Wipro achieved a Return on Equity (ROE) of 16.38% and a Return on Capital Employed (ROCE) of 19.51%, reflecting efficient capital allocation and healthy operating performance.

6. Has Wipro increased its dividend payout for FY25?

Yes, Wipro significantly hiked its dividend payout ratio from 5% in FY24 to 48% in FY25, underlining the company’s commitment to delivering higher shareholder returns in line with improved profitability.