WIPRO - Wipro

📊 NSE: WIPRO 🏢 Computers - Software - Large 📅 Last Updated: 12/14/2025 15:18

💰 Financial Performance

Revenue Growth by Segment

IT Services revenue, which constitutes over 90% of total income, reported a 2.3% decline in constant currency (CC) terms for FY2025, reaching $10.5 billion. In Q2 FY2026, IT services revenue grew 0.3% sequentially in CC terms but declined 2.6% year-on-year. IT Products and other services make up the remaining small portion of the business.

Geographic Revenue Split

North America and Europe collectively drive ~90% of total revenues. In Q2 FY2026, Americas 1 (Healthcare, Tech, Comm) grew 5% YoY; Americas 2 declined 5.2% YoY; Europe declined 10.2% YoY despite a 1.4% sequential recovery; and APMEA (India, Australia, SE Asia) grew 2.6% YoY.

Profitability Margins

Operating Profit Margin (OPM) improved to 20.2% in FY2025 from 18.7% in FY2024 due to cost optimization and higher utilization. Net Profit Margin (PAT/OI) stood at 14.8% in FY2025, up from 12.4% in FY2024. Q2 FY2026 margins were 16.7%, impacted by a one-off client bankruptcy charge; adjusted margins were 17.2%.

EBITDA Margin

OPBDIT/OI (EBITDA margin equivalent) was 20.2% in FY2025, representing a 150 basis point improvement over FY2024. This was driven by increasing employee utilization to 87% and stabilizing attrition at 14-15%, which reduced recruitment and training overheads.

Capital Expenditure

While specific total INR Cr for future Capex is not disclosed, the company maintains a robust liquidity profile with free cash and bank balances of INR 44,993 Cr as of June 30, 2024, intended to fund internal requirements and acquisitions.

Credit Rating & Borrowing

ICRA reaffirmed ratings with a stable outlook. Borrowing costs are supported by a healthy interest coverage ratio of 12.2 times in FY2025 and a low gearing of 0.2 times. Total Debt/OPBDIT stood at 1.1 times in FY2025.

⚙️ Operational Drivers

Raw Materials

Human Capital/Talent (100% of core service delivery cost), specifically skilled professionals in AI, Cloud, 5G, and Silicon Engineering.

Import Sources

Global talent pool with a primary base in India (wage cost advantage) and local hires in the US, Europe, and APMEA regions.

Key Suppliers

Not applicable as a service-based IT firm; however, key technology partners include cloud providers and the Topcoder community for crowdsourced development.

Capacity Expansion

Current workforce exceeds 230,000 employees across 65 countries. Capacity is managed via utilization levels, which improved from 83% in Q1 FY2024 to 87% in Q1 FY2025.

Raw Material Costs

Employee benefit expenses are the primary cost. Wage cost inflation and retention challenges are mitigated by a 14.1% attrition rate (LTM Q1 FY2025), down significantly from 23.3% in Q1 FY2023.

Manufacturing Efficiency

Utilization rate of 87% in Q1 FY2025 is the primary efficiency metric, indicating high billable hours per employee and optimized bench strength.

Logistics & Distribution

Not applicable; services are delivered digitally or via onsite client presence.

📈 Strategic Growth

Expected Growth Rate

2.30%

Growth Strategy

Growth is targeted through the 'Wipro Intelligence' suite and Gen AI-powered strategies. The company is deepening C-suite engagement beyond the CIO and leveraging a 1:1 bonus issue and a 70% net income payout policy to maintain investor confidence during 'modest' growth phases.

Products & Services

Digital strategy advisory, technology consulting, cloud infrastructure services, business process services, 5G engineering, and silicon chip engineering.

Brand Portfolio

Wipro, Capco, Topcoder, Wipro Intelligence, Wipro Ventures.

New Products/Services

Generative AI integration across all service lines and the Wipro Innovation Network; AI is expected to be a central driver for future productivity and growth.

Market Expansion

Expansion in the UK through the Phoenix Group transformation deal and growth in APMEA (India, Australia, SE Asia) which grew 3.1% sequentially in Q2 FY2026.

Market Share & Ranking

Wipro is the fourth-largest Indian player in the global IT services outsourcing industry.

Strategic Alliances

Strategic ecosystem includes academia, global tech communities, and the Wipro Innovation Network labs.

🌍 External Factors

Industry Trends

The industry is shifting toward AI-powered services and consulting-led transformations. Wipro is positioning itself by integrating Gen AI into its core strategy to counter the 'subdued' demand for traditional IT maintenance.

Competitive Landscape

Faces intense competition from other large Indian and global IT firms, which pressures pricing and talent retention.

Competitive Moat

Moat is built on a 99% repeat business rate and an 80-year brand history. High switching costs for clients integrated into Wipro's proprietary 'Wipro Intelligence' suite sustain this advantage.