Wipro Ltd. - ADR

Current Performance and Revenue Decline: Wipro's IT Services revenue for Q4 FY2025 was $2.6 billion, reflecting a sequential decline of 0.8% and a year-on-year decline of 1.2%. For FY2025, IT Services revenue totaled $10.51 billion, marking a year-on-year decrease of 2.3%. The guidance for Q1 FY2026 anticipates a further sequential decline of 3.5% to 1.5% in constant currency terms, underlining a challenging macroeconomic environment.

Strong Order Book but Conversion Challenges: Wipro reported order bookings for Q4 at $4 billion, a growth of 13.4% sequentially, illustrating strong demand. However, the company is facing challenges in converting these large deals into revenue, primarily due to longer ramp-up times for new contracts and the presence of significant ramp-downs from existing projects due to client caution amid economic uncertainty.

Sector-Specific Weaknesses: The healthcare, consumer, and manufacturing sectors particularly showed weakness. The BFSI (Banking, Financial Services, and Insurance) sector witnessed caution among clients regarding discretionary spending. While there is a strong pipeline and new deals, clients are reportedly delaying major investments until macro conditions stabilize.