Tariffs put Wipro revival at risk

Wipro Ltd's turnaround plan could be jeopardized by Trump's tariffs. The objective of the IT company's revamped strategy was to boost its revenue trajectory that has been lagging that of larger peers. So, in the past year, Wipro has taken several corrective steps under new CEO Srinivas Pallia.

- Harsha Jethmalani

But even before trade tariffs, the IT sector faced concerns around clients' discretionary spending. Now, the demand scenario has become tougher to predict. Wipro is feared to feel more heat than other tier-1 peers because of a higher exposure to discretionary services after acquiring consulting firms Capco and Rizing.

Following the muted March quarter (Q4FY25) results, the management said client spends deteriorated toward the end of Q4, and June quarter (QIFY26) could see further impact. Tariff-led macro uncertainty is weighing on the demand in verticals such as consumer and manufacturing, resulting in a pause of certain large transformation projects, it said.