Wipro Q4 Results Review: Tariffs, Macro Uncertainty Drive Poor Q1 Guidance; Motilal Oswal Maintains 'Sell'

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Motilal Oswal Report

Wipro Ltd. reported Q4 FY25 IT Services revenue of $2.6 billion, down 0.8% QoQ in constant currency, below our estimate of flat QoQ. It posted an order intake of $3.9 billion (up 12.5% QoQ), with a large deal total contract value of $1.8 billion (up 43% QoQ). Ebit margin of IT Services was 17.5% (est. 17.6%). Ebitda was flat QoQ and up 6.3% YoY at Rs 47 billion (estimate Rs 48 billion).

PAT stood at Rs 36 billion (+6.4% QoQ/+25.9% YoY), above our est. of Rs 33 billion. For FY25, revenue declined 0.6% YoY, whereas Ebit/PAT grew 11%/19% YoY (in INR terms).

We expect revenue to remain flat YoY and Ebit/PAT to grow by 4.1%/3.0% YoY in Q1 FY26. We reiterate our Sell rating on Wipro with a target price of Rs 215, implying 17 times FY27E EPS.

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