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Informist, Wednesday, Jul. 16, 2025
By Arya S. Biju
MUMBAI – Information technology major Wipro Ltd. is expected to report subdued earnings for the June quarter, with both bottom and top line expected to decline on a sequential basis. The company's earnings for the latest quarter is expected to be the worst among its large-cap information technology peers, which are also expected to report weak earnings for the quarter, given a muted discretionary demand environment worsened by uncertainties over US tariffs.
Analysts expect IT companies such as Wipro, which have high exposure to the manufacturing and retail segments, to be impacted by tariff-related uncertainties and deferred client spending. Around 35% of Wipro's revenue comes from these businesses, Anand Rathi Share and Stock Brokers said in an earnings preview note. Further, ongoing client-specific challenges including major client Marelli Holdings Co. filing for bankruptcy protection in the US for restructuring, and project ramp-downs, are expected to impact the company's top line for the June quarter, analysts said.
Wipro's consolidated net profit for the quarter is expected to decline nearly 9% sequentially but rise about 9% on year to INR 32.62 billion, according to an average of 17 estimates. This will be the highest sequential fall in the company's net profit in three years. Antique Stock Broking Ltd. has the highest estimate of INR 34.19 billion for the company's net profit and ICICI Securities Ltd. has the lowest estimate of INR 30.69 billion.
India's fourth largest IT company by market capitalisation is expected to report over 2% sequential fall in consolidated revenue for the reporting quarter, to INR 220.51 billion, according to an average of estimates from 17 brokerages. This would be the first sequential fall in Wipro's net sales after rising for the last three consecutive quarters. On a year-on-year basis, the company's top line is expected to rise marginally. Nirmal Bang Equities Pvt. Ltd. has the highest estimate of INR 225.60 billion for the company's consolidated sales for the quarter, and Nuvama Wealth Management Ltd. has the lowest estimate of INR 218.59 billion.
In constant currency terms, the company's top line for the June quarter is expected to decline 2.0-2.8% sequentially, impacted by weak demand, project ramp-downs, and weakness in the banking, financial services, and consumer segments. Analysts expect Wipro's revenue in dollar terms to fall 0.4-2.2% in the June quarter. During its March quarter earnings announcement, Wipro had guided for a 1.5-3.5?cline in revenue from IT services for the June quarter. This implies the revenue from the IT services segment will be in the range of $2.51 billion to $2.56 billion this time around. Revenue from this segment contributed 99.7% to the company's total sales during the March quarter.
While most brokerages expect Wipro's earnings before interest and tax margin to decline on a sequential basis, IDBI Capital and Anand Rathi Share and Stock Brokers expect it to improve. The company's operating margin for the quarter is expected to be impacted by a weaker top line, visa costs, and lower utilisation, analysts said. However, according to Nirmal Bang Equities, the company's EBIT margin is expected to remain in the 16.5-17.5% range due to tight cost control under the new leadership, Nirmal Bang Equities said.
Similarly, analysts are divided on their estimates for the company's IT services operating margin for the reporting quarter. While Dolat Capital, HSBC, and Prabhudas Lilladher expect the company's IT services EBIT margin to decline 20-100 basis points sequentially, Kotak Institutional Equities expects it to be flat on quarter and Motilal Oswal expects it to improve by 10 bps. In the previous quarter, the company's EBIT margin for IT services was flat on quarter at 17.5%.
Wipro will announce its earnings for the June quarter Thursday. Analysts expect the company to guide for (-)1% to 1% revenue growth in constant currency terms for the September quarter. Investors will keenly watch for the management's commentary on deal pipeline and deal wins, timeline to catch-up with peers on growth, and on-demand trends across business segments.
Management commentary on the impact of US tariff-related uncertainties on client spending, impact due to the bankruptcy of major client Marelli Holdings, and business outlook for its acquired business Capco will also be monitored.
At 1155 IST, shares of Wipro traded at INR 261.25 on the National Stock Exchange, up 1.5% from previous close. The stock has risen nearly 5% since the announcement of its March quarter earnings on Apr. 16, but has fallen over 30% from its all-time high of INR 369.93 hit in October 2021.
Following are the June quarter earnings estimates for Wipro based on reports from 17 brokerage firms in descending order of the estimate of net profit:
| Brokerage |
Net Sales (in INR mln) |
Net Profit (in INR mln) |
Revenue (mln $) | ?IT margin |
|---|---|---|---|---|
| Antique Stock Broking Ltd. | 219,783.00 | 34,189.00 | -- | -- |
| Emkay Global Financial Services Ltd. | 221,840.00 | 33,906.00 | -- | -- |
| Anand Rathi Share and Stock Brokers Ltd. | 220,325.00 | 33,619.00 | 2,561.00 | 17.4 |
| Elara Securities (India) Pvt. Ltd. | 220,149.00 | 33,508.00 | 2,554.00 | -- |
| JM Financial Institutional Securities Pvt. Ltd. | 223,582.00 | 33,504.00 | -- | -- |
| Kotak Institutional Equities | 219,429.00 | 33,093.00 | 2,563.00 | -- |
| Sharekhan Ltd. | 220,430.00 | 33,040.00 | -- | -- |
| Nirmal Bang Equities Pvt. Ltd. | 225,600.00 | 33,016.00 | 2,574.00 | 16.7 |
| IDBI Capital Market Services Ltd. | 218,708.00 | 32,806.00 | 2,555.00 | 17.5 |
| Prabhudas Lilladher Pvt. Ltd. | 220,400.00 | 32,800.00 | 2,564.90 | 17.2 |
| Indsec Securities and Finance Ltd. | 220,600.00 | 32,400.00 | 2,600.00 | 17 |
| HDFC Securities Ltd. | 219,430.00 | 32,250.00 | 2,562.00 | 17.2 |
| Motilal Oswal Financial Services Ltd. | 220,000.00 | 32,000.00 | -- | -- |
| HSBC Global Research | 220,005.00 | 31,611.00 | 2,571.00 | 16.8 |
| Dolat Capital Market Pvt. Ltd. | 219,120.00 | 31,306.00 | -- | -- |
| Nuvama Wealth Management Ltd. | 218,587.00 | 30,760.00 | 2,550.00 | 17.1 |
| ICICI Securities Ltd. | 220,628.00 | 30,690.00 | 2,583.00 | 16.6 |
| Average | 220,506.82 | 32,617.53 | 2,567.08 | -- |
End
US$1 = INR 85.80
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Nishant Maher
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