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Informist, Wednesday, Oct. 15, 2025

 

By Shakshi Jain

 

NEW DELHI – Information technology major Wipro Ltd. is expected to report a marginal sequential decline in its bottom line for the September quarter despite a low-single-digit rise in its top line. It would be the company's first net profit fall in seven quarters while the revenue growth would be the highest in four quarters.

 

The sequential uptick in revenue during the reporting quarter will likely be on the back of contribution from the recently acquired digital transformation solutions business from Harman International Industries Inc., according to analysts. However, the upfront costs associated with ramp-up of recent large deals likely pulled margins down for India's fourth-largest information technology company by market capitalisation.

 

Wipro's consolidated net profit for the September quarter is expected to decline 0.4% sequentially to INR 33.17 billion, according to the average of estimates from 16 brokerages. However, on a year-on-year basis, the bottom line is expected to rise 3%. The highest estimate for net profit is INR 37.68 billion by JM Financial Institutional Securities Pvt. Ltd. and the lowest is INR 31 billion by Motilal Oswal Financial Services Ltd.

 

The company's top line for the reporting quarter is seen rising almost 3% sequentially and 2% on year to INR 227.25 billion. The highest estimate for revenue is INR 230.86 billion from JM Financial while the lowest is INR 225.01 billion from HSBC Securities and Capital Markets (India) Pvt. Ltd.

 

In dollar terms, the company, which employs over 233,200 workers across four continents, is expected to report $2.59 billion in revenues for the September quarter, as per the average of estimates from 14 brokerages. The estimates were in a tight range.

 

In constant currency terms, most brokerages expect the company to report a minor sequential growth in revenue, around the middle of the guided range of (-)1% to 1%.

 

BUSINESS MOMENTUM

 

Several brokerages expect the deal signing momentum to have moderated in the September quarter after a strong show in the June quarter. There were no mega wins in the reporting quarter, they said. Wipro had recorded its highest-ever quarterly deal wins of nearly $5 billion in the June quarter with 16 large deals, including two mega deals.

 

In the European market, where Wipro has been facing client-specific issues, some analysts said stability is setting in and they expect a gradual recovery. This market has impacted the overall growth in Wipro's biggest segment, banking, financial services and insurance, Chief Financial Officer Aparna C. Iyer had said earlier this year.

 

For the ongoing quarter, some analysts expect constant currency revenue growth guidance of (-)1% to 1% while others anticipate growth guidance of up to 2%. JM Financial expects revenue contribution from the recent mega deals to start from the ongoing quarter. Ramp up of the large deal with UK's Phoenix group is expected to add considerably to the revenue growth in the December quarter, brokerages said.

 

MARGIN MOVEMENT

 

Wipro's earnings before interest and tax margin for the September quarter is expected to contract by 65 basis points sequentially to 16.65% for the September quarter, according to the average of estimates from 11 brokerages. This is primarily due to ramp-up costs of recently won large deals with upfront cost savings given to customers, brokerages said. However, the pressure on margin is expected to have been partially offset by the sharp depreciation of the rupee, they added.

 

A few analysts are also expecting an expansion in the company's EBIT margin for the reporting quarter. "Margin expansion will be due to reversal of one-time restructuring cost of INR 2.46 billion, which was incurred in 1QFY26 (Apr-Jun) in Europe," Nirmal Bang Securities Pvt. Ltd. said.

 

IDBI Capital Markets & Securities Ltd. expects improvement in Wipro's EBIT margin for the September quarter due to operational efficiencies.  

 

Wipro had reported a consolidated net profit of INR 33.30 billion for the June quarter and INR 32.09 billion for the year-ago quarter. Its revenue was INR 221.35 billion in the June quarter and INR 223.02 billion in the year-ago quarter.

 

Wipro will announce its September quarter earnings Thursday. Investors will keenly watch management commentary on upfront investments and margin profile of recent deal wins, workforce training and attrition, possibility of recovery in discretionary spending by clients, demand trends across verticals, and the impact of furloughs on growth in the December quarter. They will also keep an eye out for updates on the consultancy business, especially in the banking, financial services and insurance segment, and information on artificial intelligence-related large deals.

 

Further, investors are curious about "demand in tariff-impacted sectors of retail and manufacturing," Kotak Securities said.

 

Among the 19 research recommendations on the stock available with Informist, nine have a "sell" rating on Wipro while seven have a "hold" rating and three have a "sell" recommendation. The average target price of the "sell" calls is INR 247, and that of the "hold" calls is INR 274. The average price target for the "buy" recommendations is INR 319.

 

Wednesday, shares of Wipro closed at INR 250.21 on the National Stock Exchange, up 0.7% from the previous close. The stock has fallen almost 4% since the announcement of its June quarter earnings on Jul. 17.

 

The following are the Jul-Sept earnings estimates for Wipro from 16 brokerages in descending order of the estimate of net profit in INR million:

 

Broking Firm	Net Sales ( in INR mln)	Net Profit ( in INR mln)	Revenue (mln $)	?IT margin
JM Financial Institutional Securities Pvt. Ltd.	230,855	37,681	2,588
Equirus Securities Pvt. Ltd.	225,128	34,580	2,593	16.9
Nirmal Bang Equities Pvt. Ltd.	228,330	34,246	2,595	17.3
Anand Rathi Share and Stock Brokers Ltd.	227,716	33,912
Emkay Global Financial Services Ltd.	227,805	33,793	2,590
Kotak Securities Ltd.	227,957	33,631	2,595	16.9
Prabhudas Lilladher Pvt. Ltd.	226,700	33,400	2,590.60	17
Nuvama Wealth Management Ltd.	226,858	33,350	2,593	16.9
HSBC Global Research	225,009	33,042	2,587	16.5
Indsec Securities and Finance Ltd.	226,800	32,800	2,600	16.6
YES Securities (India) Ltd.	226,195	32,681
Elara Securities (India) Pvt. Ltd.	226,726	31,984	2,590
HDFC Securities Ltd.	227,110	31,890	2,594	16.8
IDBI Capital Market Services Ltd.	226,858	31,760	2,599	16.5
Nomura Equity Research	227,963	31,005	2,603	15.5
Motilal Oswal Financial Services Ltd.	228,000	31,000	2,607	16.3
Average	227,250.63	33,172.19	2,594.61	16.65

 

End

 

US$1 = INR 88.07

 

Edited by Deepshikha Bhardwaj

 

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