Wipro cautions on growth potential amidst market uncertainty

Bengaluru: Wipro on Wednesday gave a weak revenue growth forecast, expecting it to decline in the first quarter of the ongoing fiscal year (FY26), also flagging worries about the uncertain macroeconomic backdrop. If the industry was hoping to having it easier under US President Donald Trump’s administration, his tariff tantrums has clearly taken the wind out of the sail, at least in the short term. 

“Even though the underlying demand for tech reinvention remains strong, clients are approaching it more cautiously. The global industry environment remained uncertain for most of the year, and the recent tariff announcements have only added to that,” Wipro’s Chief Executive Officer Srini Pallia said in the post earnings call on Friday.

Wipro reported a 25.4 per cent uptick in its consolidated net profit to Rs 3,570 crore on a year-on-year basis for the quarter ended March 31, 2025. However, sequentially, the profit grew by just 6.43 per cent.

Meanwhile, its revenue growth remained subdued, growing marginally by 1.3 per cent on an annual basis to Rs 3,570 crore while the sequential growth was even more muted, growing by 0.8 per cent.

Based on its current visibility, Wipro guided its sequential growth to range between - 3.5 per cent and -1.5 per cent in constant currency terms. 

In terms of hiring, the Bengaluru-based company said that it has hired 10,000 freshers in FY25 and it continues to maintain the same number for fiscal year 2026, but with caution.

“We’ll also keep a very close look at what’s happening in the environment. We don’t want a situation where we onboard people and face challenges of deployment,” Chief Human Resources Officer Saurav Govil. 

The company’s attrition stood at an alarming rate of 15 per cent, while it added 614 employees during the fourth quarter of FY25, reversing headcount decline marginally from the previous quarter. 

“As workload pressures increase, maintaining workforce stability is critical to preserving service quality and meeting delivery expectations—any challenges in this area could pose risks to its future growth trajectory,” cautioned Senior Principal Analyst at Gartner Biswajit Maity. 

The IT services provider added $4 billion deals to its order book in the fourth quarter of FY25, a 10.5 per cent jump on an annual basis. 

Wipro also witnessed a degrowth in its European market as well as its highest revenue garnering segment - banking and financial services and insurance (BFSI). “Europe is also going to be impacted because there’s also trade happening between Europe and the US. Also what happens to tariffs in China will have an impact on our European clients,” added Pallia. 

Wipro’s American’s Depository Receipts (a financial instrument that allows US investors to trade shares of foreign companies on US stock exchanges) sank around 3 per cent in trade (until the time paper went for print)  on Wednesday after the company released its quarterly earnings.