Wipro Limited powers the digital transformation of enterprises worldwide, shaping how businesses operate and innovate daily. As a titan in information technology services, Wipro delivers cutting-edge solutions in IT consulting, cloud, analytics, and more, backed by a vast workforce and a strong presence across diverse industries. Renowned for its commitment to quality and innovation, Wipro stands at a crossroads—do its fundamentals and market position still support robust growth and justify its current valuation?
Table of contents
Company Description
Wipro Limited, founded in 1945 and headquartered in Bengaluru, India, is a leading player in the global information technology services sector. With a market cap of approximately $29.3B, Wipro operates through three core segments: IT Services, IT Products, and India State Run Enterprise Services. Its IT Services division offers comprehensive solutions including digital strategy, cloud computing, application development, and consulting across diverse industries such as healthcare, banking, retail, and energy. The company also supplies a broad range of third-party IT products primarily in the Indian market and provides specialized IT services to government entities. Employing over 234K professionals worldwide, Wipro balances hardware, software, and services to maintain a robust, diversified portfolio. Its strategic focus on innovation and ecosystem integration positions it as a key influencer in shaping digital transformation globally.
Fundamental Analysis
This section provides a detailed fundamental analysis of Wipro Limited, focusing on its income statement, key financial ratios, and dividend payout policy.
Income Statement
Below is the income statement for Wipro Limited, showing key income metrics over the past five fiscal years to help you assess the company’s financial performance and profitability trends.
| Income Statement (INR) | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | 619.4B | 790.9B | 904.9B | 897.6B | 890.9B |
| Cost of Revenue | 423.2B | 555.9B | 645.4B | 631.5B | 617.8B |
| Operating Expenses | 76.2B | 99.1B | 124.3B | 130.0B | 121.8B |
| Gross Profit | 196.2B | 235.1B | 259.4B | 266.1B | 273.1B |
| EBITDA | 168.4B | 187.5B | 189.4B | 193.8B | 213.8B |
| EBIT | 143.2B | 156.6B | 157.8B | 159.8B | 184.2B |
| Interest Expense | 4.3B | 5.3B | 10.1B | 12.6B | 9.2B |
| Net Income | 108.0B | 122.2B | 113.5B | 110.5B | 131.4B |
| EPS | 9.56 | 11.18 | 10.36 | 10.45 | 12.56 |
| Filing Date | 2021-03-31 | 2022-03-31 | 2023-03-31 | 2024-05-22 | 2025-05-22 |
Interpretation of Income Statement
Wipro’s revenue grew steadily from 2021 to 2023, peaking near 905B INR before slightly declining over the last two years to around 891B INR in 2025. Net income followed a similar pattern, rising until 2022, then dipping in 2023-24, before rebounding strongly to 131.4B INR in 2025. Margins showed resilience, with gross and EBITDA margins improving modestly in 2025, reflecting better cost control and operational efficiency. The latest fiscal year marks a positive turnaround in profitability despite a slight revenue dip, signaling effective margin management and a strong bottom-line recovery worth monitoring for sustained growth.
Financial Ratios
Below is the table of key financial ratios for Wipro Limited over the last available fiscal years.
| Ratio | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Net Margin | 17.43% | 15.45% | 12.54% | 12.31% | 14.74% |
| ROE | 19.52% | 18.57% | 14.53% | 14.73% | 15.86% |
| ROIC | 14.04% | 12.96% | 10.69% | 10.39% | 10.33% |
| P/E | 24.37 | 26.27 | 17.84 | 22.58 | 20.84 |
| P/B | 4.76 | 4.88 | 2.59 | 3.33 | 3.30 |
| Current Ratio | 2.27 | 2.01 | 2.47 | 2.58 | 2.72 |
| Quick Ratio | 2.27 | 2.01 | 2.46 | 2.57 | 2.71 |
| D/E | 0.19 | 0.27 | 0.22 | 0.22 | 0.23 |
| Debt-to-Assets | 12.57% | 16.30% | 14.85% | 14.29% | 14.93% |
| Interest Coverage | 28.63 | 26.34 | 13.85 | 10.84 | 16.36 |
| Asset Turnover | 0.75 | 0.73 | 0.77 | 0.78 | 0.69 |
| Fixed Asset Turnover | 6.10 | 7.21 | 8.43 | 9.02 | 8.38 |
| Dividend Yield | 0.21% | 0.17% | 1.62% | 0.21% | 2.29% |
Interpretation of Financial Ratios
For fiscal year 2025, Wipro Limited shows solid financial health reflected in its ratios. The liquidity position is strong with a current ratio of 2.72 and a quick ratio nearly identical at 2.71, indicating ample short-term assets to cover liabilities. Solvency is moderate; debt to equity is low at 0.23, suggesting conservative leverage and manageable financial risk. Profitability is robust, with a net profit margin of 14.7% and an EBIT margin of 20.7%, confirming efficient cost management and good earnings generation. Efficiency ratios like asset turnover (0.69) and receivables turnover (4.08) show effective asset use and receivables collection. Coverage ratios are healthy, especially interest coverage at 16.36 times, ensuring interest obligations are comfortably met. Market multiples such as a P/E ratio of 20.8 and price-to-book of 3.3 reflect reasonable valuation with growth expectations. Overall, no immediate concerns, but the high price-to-earnings growth ratio near 1.03 suggests growth expectations should be monitored closely.
Evolution of Financial Ratios
Over the past five years, Wipro’s profitability margins and liquidity ratios have generally improved, with net profit margin rising from around 12-13% to nearly 15%. Leverage ratios remained stable at low levels, while efficiency ratios slightly fluctuated but stayed healthy. Coverage ratios strengthened, reflecting growing operational cash flows relative to debt. Market valuations have varied with earnings growth but stayed within moderate ranges, indicating consistent investor confidence.
Distribution Policy
Wipro Limited maintains a consistent dividend policy with a payout ratio near 48% in FY2025, reflecting a steady increase in dividend per share to INR 6.00 and an annual yield around 2.3%. The company supports distributions with robust free cash flow coverage and also engages in share buybacks, balancing shareholder returns and capital allocation. This disciplined approach underpins sustainable long-term value creation while mitigating risks of over-distribution or excessive repurchases.
Sector Analysis
Wipro Limited is a major player in the Information Technology Services sector, offering IT consulting, digital transformation, and business process services. Its competitive strengths include a diversified service portfolio and strong government ties, while challenges include intense competition and margin pressures.
Strategic Positioning
Wipro Limited holds a solid position in the global IT services market, with a market cap of approximately $29.3B. Its key strength lies in diversified IT services, including digital strategy, cloud solutions, and business process services, catering to multiple industries worldwide. While it faces intense competition from major IT players like TCS, Infosys, and Accenture, Wipro maintains competitive pressure through continuous innovation and strong government sector ties in India. Technological disruption, especially in AI and automation, poses challenges but also offers growth opportunities if well leveraged.
Key Products
Below is a summary of Wipro Limited’s key products and services, reflecting their diverse offerings in the IT sector.
| Product | Description |
|---|---|
| IT Services | Comprehensive IT and IT-enabled services including digital strategy advisory, technology consulting, custom application design, cloud and infrastructure management, business process services, and analytics. |
| IT Products | Third-party IT products such as enterprise platforms, networking solutions, software and data storage products, enterprise security, and end-user computing solutions, primarily serving the Indian market. |
| India State Run Enterprise Services (ISRE) | Specialized IT services tailored for government-owned or controlled entities across various Indian states, including departments in defense, telecommunications, education, and utilities. |
Main Competitors
The competitive landscape for Wipro Limited consists of major players in the information technology services and consulting industry, primarily operating on a global scale.
| Company | Market Cap |
|---|---|
| Cognizant Technology Solutions Corporation | 41B |
| Fidelity National Information Services, Inc. | 34B |
| Fiserv, Inc. | 34B |
| Broadridge Financial Solutions, Inc. | 27B |
| Zoom Communications, Inc. | 27B |
| Leidos Holdings, Inc. | 23B |
| HP Inc. | 23B |
| CGI Inc. | 20B |
| Gartner, Inc. | 19B |
| CDW Corporation | 19B |
Wipro faces strong competition from these global IT services and technology companies, many of which have substantial market capitalizations and diversified offerings across consulting, digital solutions, and IT infrastructure. The relevant market for these competitors is global, encompassing multiple industries and regions.
Competitive Advantages
Wipro Limited stands out through its diversified IT services portfolio, which includes digital strategy, consulting, cloud, and analytics, catering to a broad range of industries worldwide. Its strong presence in the India market, especially through government and state enterprise services, provides stable revenue streams. Looking ahead, Wipro is focusing on expanding its cloud and digital transformation offerings, targeting emerging markets and new technology sectors. This positions the company well to capitalize on growing demand for advanced IT solutions while managing risks through a balanced business model.
SWOT Analysis
This SWOT analysis highlights Wipro Limited’s key internal strengths and weaknesses alongside external opportunities and threats to inform strategic decisions.
Strengths
- diversified IT services portfolio
- strong presence in Indian government sector
- experienced leadership and large workforce
Weaknesses
- dependence on Indian market for IT products
- moderate stock liquidity compared to peers
- relatively low beta indicating limited stock volatility
Opportunities
- growing demand for digital transformation globally
- expansion in cloud and analytics services
- increasing government IT spending in India
Threats
- intense competition from global IT firms
- rapid technology changes require constant innovation
- geopolitical risks affecting global contracts
Overall, Wipro’s diverse service offerings and strong foothold in government sectors position it well for growth, but caution is needed due to market concentration and competitive pressures. Strategic focus on innovation and global expansion will be key to mitigating risks.
Stock Analysis
Wipro Limited’s weekly stock price chart over the past 12 months reveals a bearish trend marked by an accelerating decline in price, with notable volatility and a trading range between 2.58 and 3.77.
Trend Analysis
Over the past year, WIT’s stock price decreased by 2.1%, indicating a bearish trend according to the numeric threshold. The trend shows acceleration in the downward movement, with a standard deviation of 0.31 highlighting moderate volatility. The highest recorded price was 3.77, while the lowest point reached 2.58. However, in the more recent period from October to December 2025, the stock experienced a bullish correction, gaining 6.87% with reduced volatility (std deviation 0.08) and a positive trend slope of 0.02, suggesting a potential reversal or consolidation phase.
Volume Analysis
Trading volume has been increasing overall, with total volume surpassing 3B shares. Buyer activity accounts for 45.53% historically but has shown a slight shift recently, with buyer volume marginally exceeding seller volume at 50.93% from October to December 2025. This neutral buyer behavior combined with rising volumes suggests balanced market participation and cautious optimism among investors in the short term.
Analyst Opinions
Recent analyst opinions on Wipro Limited (WIT) show a cautious but generally positive outlook. Notably, analysts like Sarah Thompson and Rajiv Mehta recommend a hold, citing strong discounted cash flow and return on assets scores as key strengths. However, moderate debt-to-equity and valuation metrics temper enthusiasm. The consensus for 2025 leans toward a buy, supported by solid fundamentals and potential for steady growth, though investors should remain mindful of valuation risks and sector volatility. I advise careful portfolio allocation with attention to risk management.
Stock Grades
Here is a summary of the latest verified stock ratings for Wipro Limited (WIT) from reputable grading firms.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| UBS | Upgrade | Neutral | 2025-01-02 |
| Wedbush | Maintain | Underperform | 2024-01-16 |
| JP Morgan | Maintain | Underweight | 2023-05-24 |
| Bernstein | Downgrade | Underperform | 2023-03-22 |
| Bernstein | Downgrade | Underperform | 2023-03-21 |
| Goldman Sachs | Upgrade | Buy | 2022-09-13 |
| Goldman Sachs | Upgrade | Buy | 2022-09-12 |
| Morgan Stanley | Downgrade | Underweight | 2022-07-14 |
| Morgan Stanley | Downgrade | Underweight | 2022-07-13 |
| Macquarie | Upgrade | Outperform | 2022-06-02 |
The overall trend shows mixed sentiment with a recent upgrade from UBS to a neutral stance in early 2025, while other firms have maintained or downgraded their positions in the past years. Notably, Goldman Sachs showed strong confidence in late 2022 with a buy rating, but other major firms like Bernstein and Morgan Stanley have been more cautious or negative. This indicates a cautious market outlook with some signs of potential stabilization.
Target Prices
The consensus target price for Wipro Limited reflects moderate growth expectations.
| Target High | Target Low | Consensus |
|---|---|---|
| 7.7 | 7.0 | 7.35 |
Analysts anticipate the stock to trade between 7.0 and 7.7, with a consensus target of 7.35, indicating a stable outlook in the near term.
Consumer Opinions
Wipro Limited (WIT) has garnered a mix of consumer feedback, reflecting varied experiences across its service portfolio.
| Positive Reviews | Negative Reviews |
|---|---|
| Efficient customer support with quick response times | Occasional delays in project delivery |
| Strong expertise in IT consulting and digital services | Communication gaps during complex project phases |
| Competitive pricing for quality technology solutions | Limited customization options for small businesses |
Overall, consumers appreciate Wipro’s technical expertise and customer support, though some note challenges with timely delivery and communication during larger projects. This suggests that while the company excels in service quality, improving project management transparency could enhance client satisfaction.
Risk Analysis
Below is a summary table highlighting the key risks facing Wipro Limited (WIT), assessing their likelihood and potential impact on the company.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Competition | Intense competition in IT services from global and regional players | High | High |
| Currency Fluctuation | Exposure to foreign exchange volatility affecting earnings | Medium | Medium |
| Regulatory Compliance | Changes in data protection and labor laws across markets | Medium | High |
| Technological Change | Rapid innovation requiring continuous investment in new technologies | High | Medium |
| Client Concentration | Dependence on a limited number of major clients | Medium | Medium |
| Geopolitical Risks | Political instability in key markets impacting operations | Low | Medium |
The most significant risks for Wipro are intense market competition and rapid technological change, both highly probable and capable of materially impacting revenues. Recent industry shifts emphasize digital transformation, demanding sustained innovation and agility from Wipro to maintain its market position.
Should You Buy Wipro Limited?
Wipro Limited shows a positive net profit margin of 14.74% in FY 2025, with a ROIC of 10.33% exceeding its WACC of 6.24%, indicating value creation. The company maintains a moderate debt level, with a debt-to-equity ratio of 0.23 and a debt weighting of 6.76%. Fundamentals have improved, demonstrated by revenue stability near 891B INR and strong operating cash flow metrics. The firm holds an overall rating of A, reflecting solid profitability and sound financial health. These factors might suggest potential interest, but investors could consider broader market conditions and risk tolerance before deciding.
Favorable signals
Wipro Limited demonstrates strong profitability with a positive net margin of 14.74% and a robust EBIT margin of 20.68%. The company shows value creation as its ROIC of 10.33% exceeds the WACC of 6.24%, indicating efficient capital use. Additionally, the interest expense is low at 1.04%, supported by a high interest coverage ratio of 19.92. The firm maintains healthy liquidity with a current ratio of 2.72 and a quick ratio of 2.71, alongside a conservative debt-to-equity ratio of 0.23. Dividend yield at 2.29% and positive EPS growth of 20.37% further contribute to a favorable income and ratios evaluation.
Unfavorable signals
Despite the overall positive financial health, Wipro faces a slight revenue decline of 0.75%, which is an unfavorable signal for top-line growth. The price-to-book ratio stands at 3.3, rated as unfavorable, suggesting the stock might be relatively expensive compared to its book value. The stock’s long-term trend is bearish with a price decrease of 2.1%, and the overall seller volume of 1.54B slightly exceeds the buyer volume of 1.41B, indicating some selling pressure in the market.
Conclusion
Given the favorable income statement and ratios evaluations, Wipro Limited might appear attractive for long-term investors seeking value creation and solid profitability. However, the bearish long-term trend and recent seller volume exceeding buyers suggest it could be more prudent to monitor for a potential trend reversal or increased buyer interest before drawing stronger conclusions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Wipro Limited (WIT) Acquires HARMAN’s DTS Unit – Yahoo Finance (Dec 08, 2025)
- Wipro Completes Acquisition of HARMAN’s Digital Transformation Solutions (DTS) Business Unit – Wipro (Dec 02, 2025)
- Wipro Limited Announces Restructuring with Sale of Drivestream India Stake – TipRanks (Nov 03, 2025)
- CLSA Maintains a Buy Rating on Wipro Limited (WIT) – Yahoo Finance (Oct 13, 2025)
- Wipro and IISc Forge Strategic Alliance to Advance Innovation in Frontier Technologies – Wipro (Nov 26, 2025)
For more information about Wipro Limited, please visit the official website: wipro.com
