Wipro, one of the India’s tech shares, show mild volatility on short-term basis; often reacting to global cues, tech sector news, and earnings-related speculation. Traders are currently seeing limited upside momentum due to cautious sentiment ahead of Q4 FY25 results. For long-term investors, Wipro presents a mixed picture—its stock has dipped over the past three months, but a year-on-year gain suggests gradual recovery. Long-term prospects may improve if Wipro’s margin expansion and digital transformation strategy continue to deliver, making it a potential hold for patient investors.
📊 Wipro’s Current Stock Performance: A Snapshot
As of April 15, 2025, Wipro’s stock is trading at ₹244.08 on the NSE, reflecting a 1.71% gain since previous day’s close. However, over the past month, the stock has declined by 15.41%, and over the last three months, it has decreased by 15.04%. Despite these short-term declines, the stock has shown a 7.39% increase over the past year.
📈 Q3 FY25 Financial Highlights: Steady Growth Amid Challenges
In the quarter ended December 31, 2024, Wipro reported a gross revenue of ₹223.2 billion ($2.6 billion), marking a 0.1% quarter-on-quarter and 0.5% year-on-year increase. The IT services segment revenue stood at $2.63 billion, experiencing a 1.2% decline quarter-on-quarter and a 1.0% decrease year-on-year.
Notably, the operating margin reached a 12-quarter high of 17.5%, expanding by 0.7% quarter-on-quarter. Net income for the quarter was ₹33.5 billion ($392 million), reflecting a 4.5% increase quarter-on-quarter and a 24.5% rise year-on-year. Earnings per share grew by 4.6% quarter-on-quarter and 24.4% year-on-year.
Wipro’s operating cash flows were robust, amounting to ₹49.3 billion ($576.4 million), which is 146.5% of the net income for the quarter.
🌐 Impact of U.S. Tariffs and Global Realignments
The reintroduction of reciprocal tariffs by U.S. President Donald Trump has stirred concerns in the Indian IT sector. While these tariffs don’t directly target IT services, they affect key client industries like manufacturing, logistics, and retail, potentially leading to reduced IT spending.
Wipro’s Executive Chairman, Rishad Premji, expressed optimism about Trump’s pro-business stance, highlighting potential benefits from reduced taxes and regulations. However, he also acknowledged risks associated with stricter outsourcing policies and H-1B visa restrictions.
In response to evolving client needs, Wipro announced a realignment of its global business lines effective April 1, 2025. The restructuring includes consolidating cloud, data, analytics, AI, and related businesses under the tech services line, and establishing a new Business Process Services line
🔮 Looking Ahead: Anticipating Q4 FY25 Results
Wipro is set to announce its Q4 FY25 results today, April 16, 2025, after Indian market hours. The PAT may rise 16% YoY basis and margins are expected to remain stable. Investors and analysts are keenly awaiting these results to gauge the company’s performance amid global economic uncertainties and internal restructuring.
Given the current geopolitical climate and Wipro’s strategic realignments, the upcoming earnings report will be crucial in assessing the company’s adaptability and future growth prospects.
📝 Conclusion
Wipro stands at a pivotal juncture, navigating through global economic shifts and internal transformations. While short-term challenges persist, the company’s proactive strategies and financial resilience position it well for future growth. Investors should stay informed and consider both global and company-specific factors when evaluating Wipro’s stock.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.