Wipro May See Q1 Slump Amid Tariff Drag

CEO Srinivas Palia blames tariff war and macro woes for revenue slide

- AVIK DAS

India's fourth-largest information technology (IT) services provider, Wipro, reported a 25.9 per cent rise in net profit in the fourth quarter (Q4) of 2024-25 to ₹3,570 crore compared to a year earlier, even as revenue fell. Sequentially, profit was up 6.4 per cent. Revenue for Q4 rose 1.3 per cent from the year-ago period to ₹22,504 crore. On a sequential basis, revenue grew 0.8 per cent.

Wipro's Q4 performance missed Bloomberg estimates. Analysts polled by Bloomberg had projected revenue at ₹22,683 crore and net profit at ₹3,350 crore.

On a constant currency basis—which excludes the impact of exchange rate fluctuations—IT services segment revenue declined 1.2 per cent year-on-year (Y-o-Y) and 0.8 per cent sequentially.

Chief Executive Officer Srinivas Palia attributed the drop in revenue to a worsening macroeconomic environment, amplified by the tariff war that has spooked industries. "The global industry environment remained uncertain for most of the year, and the recent tariff announcements have only added to that," he said at a media briefing on Wednesday.

That led the Bengaluru-based IT firm to caution that its revenue could decline in the current quarter by as much as 3.5 per cent, or 1.5 per cent at best, in constant currency terms.