‘AI is Part of All Deal Conversations’: Wipro Secures 17 Big Wins Worth $1.8 Bn in Q4
Wipro posted a net profit of $417 million in Q4 FY25, a 26% increase compared to the same period last year and a 6.4% increase quarter on quarter. The revenue from operations, on the other hand, was nearly flat for the quarter, growing only slightly by over 1% YoY to reach $2.3 billion, an increase of 0.8% QoQ. For the year ending March 31, the IT consulting firm reported gross revenue of $10.4 billion, reflecting a 0.7% decline year-over-year. However, net income for the year rose by 19% to $1.5 billion. Wipro secured large deal bookings worth $5.4 billion during the year, reflecting a 17.5% YoY increase. However, overall bookings declined by 3.8% YoY to $14.3 billion. “We closed FY25 with two mega deal wins, an increase in large deal bookings, and growth in our top accounts…As clients remain cautious in the face of macroeconomic uncertainty, we’re focused on partnering closely with them while staying committed to consistent and profitable growth,” Wipro CEO and MD Srini Pallia said. In a post-earnings press conference, Pallia said that in Q4, Wipro closed 17 large deals with a total value of $1.8 billion across markets and sectors. “In fact, for the full year, we closed 63 large deals for a total value of $5.4 billion, a year-on-year growth of 17.5%.” The company fell short of its constant currency revenue guidance for the January–March quarter, reporting a 1.2% sequential decline. This was below its forecast range of -1% to +1% growth. Looking ahead, Wipro anticipates Q1 FY26 revenue to fall between $2.505 million and $2.557 million, indicating a projected decline of 1.5% to 3.5%. Speaking on the recent US tariff announcements, Pallia said that Wipro expects clients to take a more measured approach, especially on two spend areas—large transformation programs and discretionary spend. For example, Pallia said one of the clients asked to pause a digital transformation project to reduce their spending. “It was not a cancellation, but it was paused because they wanted certainty.” Pallia said that clients are asking for cost optimisation while boosting productivity, both in the short term and long term. “I think in the next few weeks and months, we will, you know, have better clarity in terms of how it will progress,” he said. Aparna Iyer, CFO, said, “Our net income grew 6.4% sequentially in Q4 and 18.9% for the full financial year. Cash flow continued to be robust in Q4, resulting in net operating cash flow generation of almost $2 billion for FY’25, which is 128.2% of our net income.” Regarding hiring, Saurabh Govil, CHRO, said, “We ended FY25 with approximately 10,000 young freshers hired.” He added that Wipro will continue to onboard people while ensuring that they can be deployed on tasks, ensuring utilisation while hiring freshers. Govil also spoke about Wipro’s centre of excellence for upskilling students with AI, which he claims are built at 50 campuses in India. What About AI? “As we all know, AI has been part of all deal conversations for a while. But this year, it has actually become central to almost every opportunity, big or small,” Pallia said. When asked about the cannibalisation of deals because of generative AI, Pallia said that Wipro is now incorporating generative AI into all its solutions. “GenAI was not part of the earlier deals, but in the new deals, we’re going to infuse GenAI.” “Some of the clients would want to adopt GenAI, and some are worried about the guardrails in terms of how China is going to deploy [the AI models],” Pallia said. In 3-4 quarters, Wipro will have better clarity on that. “But we are going to infuse AI into a solution before we go to the client.” Biswajit Maity, senior principal analyst at Gartner, told AIM that a strong deal pipeline suggests a positive outlook for future growth for Wipro. “Most of its revenue comes from sectors like BFSI, consumer, EMR, technology & communications, and healthcare,” he said. “However, it’s important to note that Wipro must address its attrition rate, although it has slightly improved compared to the previous quarter. As workload pressures increase, maintaining workforce stability is critical to preserving service quality and meeting delivery expectations—any challenges in this area could pose risks to its future growth trajectory,” Maity added. Pallia revealed that a leading Indian private bank has expanded its partnership with Wipro as part of a business-focused digital transformation. “We will provide AI-powered solutions to strengthen compliance management addressing the critical need for regulatory compliance, while also enhancing the overall experience for this bank.” In March, Wipro secured a 10-year contract worth $650 million from Phoenix Group, a UK-based insurance firm that was previously a client of TCS, to overhaul its life and pension administration by modernising the ALPHA platform using AI, automation, and cloud technologies. A major North American financial institution brought Wipro on board to streamline its technology infrastructure through an AI-enabled global delivery model that consolidates vendors and improves efficiency. This deal came after Wipro disclosed a five-year agreement valued at $500 million with a US-based communications company in June 2024. Wipro also strengthened its relationship with a US-based card services provider by modernising its payments platform to improve transaction security and scalability through AI. Similarly, an American energy major extended Wipro’s engagement to manage business applications across its oil and gas value chain using AI-powered NextGen AMS for improved automation and performance. A North American parcel delivery firm tapped into Wipro’s AIOps capabilities to enhance ticket resolution and reduce outages while improving scalability and data sovereignty. This is similar to how TCS, in its earnings call, said that the focus on deals was the biggest part of the year, resulting in a total revenue of $30 billion. Though no large deals were reported, small deal wins surged to an all-time high of $12.2 billion, up from $10.2 billion in the previous quarter. Infosys is expected to release its results on Thursday after the close of the market. Past Announcements Quoting internal emails shared by employees, Mint reported that Pallia is focusing intensively on increasing the company’s profitability and might be looking to lay off around 1,000 employees before June 2025. In its last earnings report for Q3 FY25 in January, Wipro reported a net income of $392 million, a 4.5% increase QoQ and 24.5% YoY. But the YoY increase was after the company reported a decrease of 12% YoY in FY24. Pallia said that the company has shifted its focus on agentic AI for customer service and supply chain management in the coming quarters and reported 17 large deals worth $1 billion for the same. In February, Wipro committed $200 million to its venture arm, Wipro Ventures, to accelerate investments in early to mid-stage startups. This is the fourth round of funding since Wipro Ventures’ launch in 2015, highlighting the company’s decade-long focus on supporting emerging technologies. One of the successful investments of the venture arm of Wipro was Avaamo. While speaking with AIM, Sriram Chakravarthy, CTO and co-founder of Avaamo said that with its LLaMB offering, Wipro was able to replace dozens of internal tools for its 2 lakh plus employees.
For the year ending March 31, Wipro reported gross revenue of $10.4 billion, reflecting a 0.7% decline year-over-year.
For the year ending March 31, Wipro reported gross revenue of $10.4 billion, reflecting a 0.7% decline year-over-year.
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["Go", "GenAI", "agentic AI", "AI", "ML", "Scala", "Git", "Aim", "generative AI", "R"]
["AI", "ML", "generative AI", "GenAI", "agentic AI", "Aim", "R", "Go", "Scala", "Git"]
Mohit writes about AI in simple, explainable, and often funny words. He's especially passionate about chatting with those building AI for Bharat, with the occasional detour into AGI.