Wipro Ltd – ₹2.6 Lakh Cr IT Giant Running Like a Maruti 800 in an EV World
1. At a Glance
Wipro Ltd is that IT cousin who always looks rich in family WhatsApp groups but underperforms when you check the CTC slip. Market cap of ₹2.63 lakh Cr, sales growth crawling at 0.4%, but still throwing 2.4% dividend to keep shareholders from complaining too loudly. While TCS, Infosys, and HCL are racing Teslas, Wipro feels like a trusty Maruti 800—reliable, slow, and always honking about “AI + Cloud.”
2. Introduction
Born in vegetable oil, baptized in IT, and now hustling in digital transformation—Wipro is India’s 4th largest IT services exporter. It runs across 60+ countries, with 2.34 lakh employees (yes, almost a city). Its business is 99.7% IT services, with the “IT Products” unit reduced to a decorative appendix contributing just 0.3%.
The company is like that “middle child” in Indian IT—TCS is the topper, Infosys is the MBA nerd, HCL is the backbencher turned surprise achiever, and Wipro… well, it’s the one quietly attending tuition, praying for 10% QoQ growth.
Margins are steady at ~20%, utilization has climbed to 88%, and attrition has cooled to 14%. All good signs. But deal wins crashed—$3.3 Bn in Q1 FY25 vs $14.9 Bn in FY24. It’s like Wipro came to the shaadi buffet late and only got papad.
3. Business Model – WTF Do They Even Do?
Wipro is basically your one-stop outsourcing shop:
IT Services (99.7%): Digital advisory, application development, system integration, maintenance. You call them when your SAP installation breaks right before Diwali.
IT Products (0.3%): Selling third-party servers, storage, and networking—mostly as add-ons, not a serious business.
Sector mix: BFSI (34%) and Consumer (19%) dominate, while Energy/Utilities and Manufacturing are shrinking. Geography-wise, Americas contribute 62%—so basically, if the US sneezes, Wipro catches the flu.
Question for you: If 99.7% of revenue comes from services, does it even make sense to still call that “Products” segment a thing?
4. Financials Overview
Source table
Metric
Latest Qtr (Jun 2025)
YoY Qtr (Jun 2024)
Prev Qtr (Mar 2025)
YoY %
QoQ %
Revenue
22,135
21,964
22,504
0.8%
-1.6%
EBITDA
4,233
4,350
4,624
-2.7%
-8.4%
PAT
3,336
3,037
3,588
9.9%
-7.0%
EPS (₹)
3.18
2.87
3.41
10.8%
-6.7%
Commentary: Profits are fine, revenues flat. It’s like passing exams by writing neat answers but not actually studying the syllabus.
5. Valuation – Fair Value Range Only
P/E Method: EPS ₹12.9 × IT services PE band (18–25) → ₹232 – ₹323.
Fair Value Range: ₹230 – ₹280 Disclaimer: Educational purposes only. Not investment advice.
6. What’s Cooking – News, Triggers, Drama
Acquisition: Buying Harman Connected Services (DTS) for $375 Mn, with 5,600 employees transferring. Basically, buying your neighbour’s Wi-Fi router and calling it “AI innovation.”
AI push: Launched 200 AI agents with Google Cloud. Expect more PowerPoints than profits.
Saudi push: Won smart grid contract from Saudi Electric, shifted ME HQ to Riyadh. New oil money = new outsourcing goldmine.
Big Deals: £500 Mn contract with Phoenix Group, 5-year IT transformation for Vorwerk. At least someone is swiping Wipro’s Tinder profile.
Trigger watch: Large deal TCV revival. Without that, growth guidance of -1% to +1% in Q2 FY25 looks like Wipro already lowering expectations.
