Wipro Q4 Results Preview: D-Street eyes low margins on weak seasonal demand, revenue to rise 2.6% YoY
Wipro Q4 Results 2024 Preview: IT major Wipro Ltd is set to conduct its board meeting on April 16 and 17 to consider its upcoming January to March quarter results for the fiscal year 2024-25. India’s fourth-largest information technology (IT) giant announced that the financial results will be approved by the company’s Board of Directors on the evening of April 16, 2025.
As per Mint’s earlier report, the trading window for dealing in the company’s securities was closed on March 16 and will remain closed until April 18, 2025 (both days included).
Wipro shares closed 1.79% higher at ₹244.10 a day ahead of the results announcement after Tuesday’s stock market session, compared to ₹239.80 in the same quarter the previous year.
The company is not expected to announce any corporate action like a dividend issue, bonus share issue, or a stock split, according to the filings before the result date.
Wipro Q4 Results: Here’s what top brokerages expect
1. JM Financial Institutional Securities
The brokerage firm expects the large-cap IT firms to deliver a muted sequential growth of (-1.4%) to 0.2% in constant currency terms for the fourth quarter results. The performance of the companies is likely to fall in the lower of the guided ranges.
“The business outlook for IT services companies remains cautious amid elevated regulatory and economic uncertainties,” said JM Financial.
The brokerage expects Wipro’s net income for the quarter to rise 21% (YoY) to ₹3,484.9 crore, while the revenue is expected to rise 2.6% to ₹22,776.1 crore.
2. Kotak Institutional Equities
The brokerage expects that the declining demand will affect the revenues of the firm, contributing to a 0.5% decline in constant currency toward the lower end of the (-)1% to +1% range of guidance.
“The deterioration in the macro environment will weigh on 4QFY25 numbers and FY2026E guidance. We expect a sequential revenue decline for all large IT companies for the March 2025 quarter due to seasonal weakness, lower billing days and marginal deterioration in demand,” said Kotak.
Wipro’s net profits are expected to reach ₹3,410.9 crore. For the first quarter of the fiscal year 2025-26, the brokerage expects that the company’s revenue guidance will be in the range of (-)0.5 to +1.5.
3. Motilal Oswal Financial Services
The brokerage firm expects the fourth quarter margins of Wipro to be in a “narrow band,” but without any significant headwinds anticipated for the IT major.
“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,” said Motilal Oswal.
Wipro’s Q4 margins are expected to remain around 17 to 17.5% for the upcoming quarter results. In April 2025, the brokerage assigned a “Sell” rating to the stock.
4. Elara Capital
Elara Capital expects Wipro’s net profits to witness a 2.2 per cent fall, on a quarter-on-quarter (Q-o-Q) basis, to ₹3,280.3 crore in the January to March quarter of the fiscal year ended 2025.
“Dollar-denominated revenue growth for Wipro should drop sequentially due to seasonality-led weakness and uncertain demand environment,” said the brokerage firm.
Elara has assigned a “Sell” rating to the IT stock, which is estimated to provide a 3 per cent negative upside on the investment.
“Wipro, expect margin to drop by 10bps QoQ on weak revenue. A steep dip may be arrested by continued cost rationalization initiatives,” said Elara Capital.
Read all Q4 Results Preview here
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, and not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
