Wipro Q1: Net Profit Drops 7% QoQ to ₹3,336 Crore, Interim Dividend Declared
Wipro, one of India’s top IT services companies, posted its Q1 results, and the numbers show a dip. The net profit fell 7% quarter-over-quarter to ₹3,336 crore. Even with this drop, Wipro has declared an interim dividend, showing it’s still focused on rewarding shareholders. If you’re someone who tracks the stock market or invests in AI stocks, this update matters.
Wipro’s Financial Snapshot
In the quarter ending June 2025, Wipro reported a consolidated net profit of ₹3,336 crore. This is a decline of 7% compared to the March 2025 quarter. Revenue from operations also slipped slightly to ₹22,831 crore from ₹23,190 crore QoQ.
Year-on-year, the net profit was almost flat. But in a growing digital world where companies expect fast gains, flat growth often signals a deeper issue.
Key Metrics at a Glance
- Net Profit: ₹3,336 crore (down 7% QoQ)
- Revenue: ₹22,831 crore (down 1.5% QoQ)
- Operating Margin: 16.3% (vs 16.8% last quarter)
Margins were squeezed due to increased employee and tech infrastructure costs. This is common in IT during slow business cycles.
Interim Dividend Announcement
Despite lower profits, Wipro surprised many by announcing an interim dividend of ₹1 per equity share. The record date is July 30, 2025, and the dividend will be paid on or before August 10, 2025.
This move indicates Wipro’s strong cash flow position and confidence in long-term value. Some investors may see this as a silver lining.
What Caused the Decline in Profit?
Several reasons contributed to this fall:
- Higher Costs: Increased spending on AI infrastructure and employee retention pushed up costs.
- Slow Global Demand: Clients in the US and Europe held back on spending due to economic uncertainty.
- Currency Fluctuations: A stronger rupee impacted export revenue.
These factors together dragged down Wipro’s earnings despite stable operations.
Stock Market Reaction
Right after the results, Wipro’s stock fell by around 2.5% on the NSE. Investors reacted cautiously to the profit drop, despite the dividend news.
The stock is now trading in the ₹460–₹470 range, down from recent highs. Compared to other AI stocks like Infosys and TCS, Wipro has been more volatile.
Analyst Opinions
Brokerages have mixed views:
- Motilal Oswal: Retains ‘Neutral’ rating, citing near-term pressure.
- ICICI Securities: “Buy on Dips” due to long-term potential in cloud and AI.
- JP Morgan: Rates it ‘Underweight’, expecting weak demand from BFSI clients.
This shows that stock research is critical before jumping in.
Wipro’s Key Business Segments
Wipro operates across many verticals:
- IT Services: Still the core business, contributing over 95% of revenue
- Cloud and AI: Fastest-growing area, with double-digit YoY growth
- BFSI and Healthcare: Slight dip due to budget cuts by US clients
Wipro is trying to reduce its dependency on low-margin legacy services and push into AI-driven digital solutions.
Deal Wins and Client Updates
Despite the decline, Wipro announced deal wins worth over $1.5 billion in Q1. These include:
- A major cloud transformation deal with a US bank
- AI automation contracts with healthcare giants
- Long-term partnerships in Europe
This proves that client confidence remains, even if spending is cautious.
Challenges and Opportunities
The biggest challenge is slow global tech spending. But there are clear opportunities:
- Generative AI adoption is still in early stages. Wipro has invested in training 250,000 employees on AI tools.
- Cloud migration continues across sectors, and Wipro has partnered with AWS and Azure for this journey.
Competition Outlook
In the race among Indian IT giants:
- TCS and Infosys remain ahead in size and deal volume
- HCL Tech is growing aggressively in the AI space
- Wipro is catching up, but needs consistent execution
Investors must track quarterly deal wins, employee attrition, and new client additions for a clearer picture.
What’s Next for Wipro?
Q2 might not show a huge rebound, but things could get better in the second half of FY26. Wipro is:
- Restructuring its consulting wing
- Expanding AI capabilities
- Trying to deepen the US and EU market presence
Experts believe Wipro could bounce back if tech spending resumes and the AI wave grows faster.
Investor Takeaways
If you’re already invested in Wipro, the interim dividend is a small reward. But new investors should be cautious.
Wait for clarity in global demand, especially from BFSI and retail clients. Meanwhile, keep watching AI stocks and how Wipro positions itself in that domain.
Conclusion
Wipro’s Q1 results might look disappointing at first glance. But the interim dividend shows underlying confidence. The drop in profit is due to broader economic factors, not company missteps.
Still, the stock may face pressure in the short term. Long-term investors should keep an eye on Wipro’s AI strategy, new deals, and global recovery trends.
FAQs
Wipro profit drop was due to higher operating costs, weak global demand, and currency pressures.
Wipro has declared ₹1 per share as an interim dividend, payable by August 10, 2025.
Wipro offers long-term potential, especially in AI and cloud, but short-term caution is advised due to global tech demand weakness.
Disclaimer:
This content is made for learning only. It is not meant to give financial advice. Always check the facts yourself. Financial decisions need detailed research.