Wipro Ltd’s revenue fell for the second consecutive year on Wednesday, even as it began a new fiscal year with the weakest concerns about global technology spending.
India’s fourth largest information technology (IT) service company reported revenue in fiscal 25 was US$10.51 billion, down 2.72% from the previous year, even as net profit rose 19% to US$1.54 billion. While the numbers beat analyst estimates, revenue declines and uncertainty challenged Wipro’s startup capabilities a year after Srinivas Pallia took over as CEO.
one Bloomberg The survey estimated revenue to be $10.29 billion and profit to be $1.48 billion.
“The global industry environment remains uncertain for most of the year, and of course, the recent tariff announcement will only increase,” Palia told the media after the earnings announcement. The company is now expected to end in the June quarter with revenue of $251-2.56 million, 3.5% to 1.5% lower than the March currency’s continued currency ratings than the March quarter. Constant currency does not take into account currency fluctuations.
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“Given the uncertainty in the environment, we want our clients to take a more measured approach, especially in two areas of spending, large transformation plans and discretionary spending,” Palia said.
Act cautiously after U.S. President Donald Trump announced so-called reciprocity tariffs on April 2 and then paused them after a week of strong market turmoil. This uncertainty could prompt local outsourcing customers to block spending, which would result in lower business operations for IT outsourcing, including Wipro.
Despite Wipro’s revenue decline, TATA Consultancy Services Ltd (TCS) earlier reported a 3.8% revenue growth, but it still has the slowest growth in four years. K. Krithivasan, CEO of the country’s largest IT services company, said clients are delaying decisions and there are some project ramps. Pallia’s comments on Wednesday echoed with the same concerns.
Wipro’s revenue decline was mainly due to its lower business in Europe, its third largest market. In the Americas, better business cannot offset the region’s losses.
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Wipro’s tedious performance comes a year after Pallia, the new CEO of Bangalore-based IT outsourcing firm Pallia. In his first year, Pallia focused on cutting redundant costs such as travel and off-field.
Pallia has also identified 50 essential accounts for its 80 largest customers and deployed “Account Executives”. The company also won two big deals in its first year as CEO, including a $650 million contract by British insurer Phoenix Group in March and a $500 million deal last June by an unnamed U.S. communications provider.
Still, Wipro still has a long way to go before it can achieve growth. The company added 197 new accounts this year, compared with 229 in the previous fiscal year. Over the past 12 months, customers who have received more than $100 million each year have also dropped by five.
Management said that customers have stopped planning due to the hazy macroeconomic situation.
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“In the competition, a large transformation plan being prepared is taking place and the customers have decided to pause it,” said Chief Financial Officer Aparna Iyer.
At least one analyst is cautious about the future.
“Wipro’s fiscal 25 figures are likely to mean that there may be some customer delays in Q1FY26 due to the ongoing trade war,” said Abhishek Pathak, chief analyst at Motilal Oswal Financial Services IT Services.
During the entire year, power companies and manufacturers were the majority of the reason for the decline in Wipro’s business. These companies contributed 17.2%, or Wipro’s full-year revenue of $1.8 billion. The revenue of these companies fell by 10.5% per year.
Geographically, Wipro received 27% or $2.85 billion in revenue from customers in Europe, down 7.4% year-on-year. In the Americas, better business cannot offset the region’s losses.
In the quarter, Wipro reported revenue of $2.6 billion, down 1.24%. Among them, the business of healthcare companies is low. Net profit for the quarter rose 6.4% to $418 million.
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Profitability is another highlight. Wipro reported operating margin of 17.1%, 100 basis points higher than a year ago. A basis point is a percentage point of one percentage point.
WIPRO’s employee base rose 732 to 233,346 in fiscal 25, while TCS added 6,433 employees to end the fiscal with 607,979 employees.
Management did not give recruitment goals like peers TC, but baked in macroeconomic uncertainty.
Chief Human Resources Officer Saurabh Govil said: “We will have to look at it from a growth perspective where we will regularly start with the plan of boarders, especially from campus.
The number of people determines the demand environment of the IT service department. The increase in recruitment or increased employee numbers indicates a higher demand for technical services, while cutting employee signals reduces the business of software service providers.
After the market closed, Wipro’s revenue was released. On the New York Stock Exchange, Wipro’s shares fell 6.74% to $2.63 as of 6:30 p.m.
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