Welcome, everyone, to our Kodathi campus. For those of us who are joining virtually, good morning, good afternoon, good evening. We will begin the press conference for Wipro's fourth quarter earnings. My name is Nisha Chandrasekaran. I'm part of the external communications team, and I will be your moderator for today. Joining me on stage is our Chief Financial Officer, Aparna Iyer, our Chief Executive Officer and Managing Director, Srini Pallia, and our Chief Human Resources Officer, Saurabh Govil. We will begin with opening remarks from our CEO, followed by a financial review from our CFO. Post that, we'll open the floor for your questions. With that, let me hand over to our CEO and MD, Srini Pallia.
Thank you, Nisha. Hello, everyone. Thank you for joining us today. You know, it's hard to believe that it's already been a year since I took over as CEO. They say time flies. It did really fly for me. When I look back at these 12 months, I can see clear progress across many areas. We won two mega deals this year. It's clearly a strong sign that our large deal engine is working and continues to expand. In fact, our clients have responded well to our consulting-led, AI-powered industry and cross-industry solutions. This is reflected in the strong growth in top accounts and also large deal bookings in financial year 2025. We have continued to invest in our people, skilling them for the new AI wave.
Our execution rigor with speed definitely has been acknowledged by our clients, and that is reflected in the clear improvement in our client satisfaction scores. We have done all of this while strengthening our margins. It is a meaningful achievement in the context of such ongoing change. The global industry environment remained uncertain for most of the year, and of course, the recent tariff announcements have only added to that. Before coming to Bangalore, I have been speaking to clients across sectors and across markets to understand how things are playing out on the ground. You know, even though the underlying demand for the tech reinvention remains strong, our clients are approaching it more cautiously. They are focused on cost, speed, and of course, AI-led efficiency. That is exactly where we are leaning in.
We see this as an opportunity to move with purpose, make smart bets, and stay committed to our five strategic priorities. I want to say this: driving consistent, profitable growth remains a clear priority for us, and we are focused on making that happen. With that, let's look at our Q4 and FY 2024-2025 performance. All the growth numbers I share will be in constant currency. Our IT services revenue for Q4 was $2.6 billion, reflecting a sequential decline of 0.8% and 1.2% on a year-on-year basis. The order book for Q4 was at $4 billion, which is a growth of 13.4% sequentially and 10.5% on a year-on-year basis. Our operating margins came in at 17.5%, which is flat sequentially and 110 basis points expansion on a year-on-year basis. For the full year, IT services revenues were $10.51 billion, reflecting year-on-year degrowth of 2.3%.
Our operating margin was at 17.1%, an expansion of almost 1% as compared to FY 2024. Now, let me talk about our strategic market unit performance. America's one grew 0.2% sequentially and 6% on a year-on-year basis. America's two degrew 1% sequentially and 1.8% on a year-on-year basis. Europe degrew 2.5% sequentially and 6.9% on a year-on-year basis. APMEA grew 1.0% sequentially and degrew 4.9% on a year-on-year basis. Now, moving on to our industry sector performance. BFSI degrew 0.5% sequentially and grew 0.8% year-on-year. Healthcare degrew 3.1% sequentially and grew 0.1% year-on-year. Consumer degrew 1.3% sequentially and was flat year-on-year. Technology and communication degrew 0.9% sequentially and 1.1% year-on-year basis. Energy, manufacturing, and resources grew 1.1% sequentially and degrew 7% yea`r-on-year. Finally, Capco continues to perform well, growing 6.5% sequentially and 11.5% on a year-on-year basis. Let me now provide an update on our strategic priorities.
As I mentioned earlier, we are continuing to see strong momentum in large deals. In Q4, we closed 17 large deals with a total value of $1.8 billion across our markets and sectors. In fact, for the full year, we closed 63 large deals for a total value of $5.4 billion, which is a year-on-year growth of 17.5%. Let me take, or rather, let me highlight two recent wins. One, a global technology leader has chosen Wipro for a major five-year transformation program. In fact, we will deliver AI-powered end-to-end IT services, completely reshaping employee experience for almost 200,000 employees across countries. Our solution involves proactive support, intelligent self-service, and personalized digital interactions. In my second example, with our recent partnership with a leading global food distributor, we are taking over their entire IT infrastructure and corporate applications, which also includes HR, finance, and legal systems.
We are leveraging AI solutions, and we will drive automation and simplify user interactions. This will result in higher efficiency, lower costs, and better user experience for our client. As we all know, AI has been part of deal conversations for a while, but this year, it has actually become central to almost every opportunity, big or small, helping drive productivity and efficiency. This reflects a broader shift we are seeing across the board. Let me now move on to large accounts, the second strategic priority. We continue to focus on our large accounts in our core markets and our priority sectors. In Q4, our top five accounts and top ten accounts grew 0.3% and 1.1%, respectively, on a sequential basis. I want to share an example that shows our momentum in these strategic accounts.
In Q4, a leading Indian private bank expanded strategic partnership with us 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. This will help the bank boost operational efficiency and realize its growth ambitions across various functions. We continue to create significant impact for our clients through our consulting-led, AI-powered industry and cross-industry solutions. In this context, let me talk about a recent win in the aviation sector. In Q4, a well-known Pacific airline chose Wipro to modernize its crew management and operations system. In fact, we were selected for our proven ability to future-proof the client's IT platform with AI. We will deploy our own TOPS platform to manage end-to-end crew operations, providing a unified, scalable solution that enhances experience and drives sustained operational efficiencies.
Alongside all of this, we have put even more focus on client centricity, and it's starting to show results. Our latest third-party annual customer satisfaction survey shows clear improvement in overall satisfaction scores and also NPS. In fact, I want to thank our teams for making this possible. Thank you. You have heard of this. We have realigned our global business lines effective April 1 to meet our customer needs better. In fact, this change will help us deliver stronger business outcomes for our clients. Finally, just as important, supporting and growing our global talent has been a top priority all year. If you remember, last quarter, I spoke about our focus on leadership development and how we are building future-ready leaders through the Wipro Leadership Institute.
In fact, we have moved our top performers into key client-facing roles to ensure continuity and stability, and we have launched a sponsorship program this quarter to help them succeed. Now, a note on guidance before I wrap up. Given the uncertainty in the environment, we expect our clients to take a more measured approach going forward, especially on two spend areas: large transformation programs and discretionary spend. With this in mind and based on our current visibility, we are guiding for a sequential growth of -3.5% to -1.5% in constant currency terms. With that, let me turn it over to Aparna for a detailed overview of our financials. Aparna, over to you. Thank you.
Good evening, ladies and gentlemen. Let me share a quick update of our financial performance for the quarter ended 31st March 2025, and then we can open it up for questions.
Our IT services revenues for Q4 sequentially declined by 0.8% in constant currency terms, which is within our guidance range. For FY 2025, our IT services revenue declined by 2.3% in constant currency terms. Our rigorous focus on execution has resulted in an operational improvement that has ensured that our margins have been steadily improving over the last five quarters. For Q4, our margins expanded 1.1% on a year-on-year basis. Our reported margins were 17.5%. This brings our full-year operating margin expansion to 0.9% over FY 2024 margins. As we enter FY 2026, like Srini said, we are faced with headwinds on an uncertain macroeconomic environment that is putting a downward pressure on our revenues. That said, our endeavor will be to maintain the margins in the narrow band in the coming quarters. Our net income grew 6% quarter on quarter and 19% for the full year.
Our EPS for the full year was INR 12.6, which is a growth of 20% year-on-year. We finished the financial year with a free cash flow as a percentage of net income of 118%. That takes our gross cash to $6.4 billion. In Q4, our other income grew 45% sequentially, and our accounting yield for the average investments held in India was 7.9%. Our ETR was at 24.3% for Q4 versus 26% in the same quarter of last year. Our hedges continued to be in line with our risk management policy, and we had about $2.4 billion of forex derivative contracts at the end of Q4 2025. In terms of guidance, I want to reiterate the outlook that Srini shared. We expect the revenues from the IT services business to be in the range of $2.505 billion-$2.557 billion.
This translates to a sequential guidance of minus 3.5% to minus 1.5% in constant currency terms. With that, over to you, Nisha.
Thank you, Aparna. We will now open the floor for your questions. For the journalists who are present in the room, please raise your hand, and we'll pass the mic to you. For the journalists who have joined outside of Bangalore, who have joined on the teams, please key in your questions, and we'll try to accommodate as many as we can. To ensure that everyone has a chance, please limit your questions to two, and do make sure that you introduce your publication before and yourself before you ask your question. Do we want to start with? I'll come to you, Ritu. Can we start with Rishabh?
Hi, everybody. Rishabh here from Moneyc ontrol. You know.
I'm sorry, I didn't get your name.
Rishabh. Rishabh from Moneyc ontrol.
Oh, Rishabh.
Rishabh Mohits.
Hi, Srini. The guidance that you have given, does it bake in all the uncertainties that you see as of now? For, you know, even the margins have gone down irrespective of the AI-led efficiencies that you have, you know, baked in. If you could throw some light on that. Saurabh, for you, you had said that you'd onboard 12,000 freshers. Is that, you know, is that plan on? Also, for Srini, you said last quarter that clients are at the tail end, and as well as the upper end of the clientele is reducing. What is happening on that account? If you could throw some light on that.
Can we take the first two questions, and then we will come back to you once we have some time?
Sure.
Yes, Rishad, our guidance does bake in, you know, everything that we know as of now, like Srini shared. The macroeconomic environment is uncertain, and that is yielding into our guidance as well. It's based on the current visibility that we have. In terms of the operating margins, you noted that we've actually declined. Actually, we've improved, like I said, 1.1% year-on-year even in this quarter, and for the full year, we've actually improved 0.9%. Even on our net income, we've grown 19% year-on-year. It's been a very, very strong performance as far as margins and profits are concerned. Saurabh, you want to take the question on?
Yeah, we ended the fiscal year 2025 with approximately 10,000 freshers hired. That's what we had said. We look to continue to see that, but we will also keep a very close look at what is happening in the environment. You know, we do not want a situation where we onboard people and we do not have challenges of deployment. We will keep a very close look, but that is the plan, to continuously keep growing and adding people there.
Hi, Chandra Srikanth here from Moneyco ntrol. Srini, you know, as you said yourself, you have completed a full year as CEO. How much of your work is done? How much is left unfinished? How would you sort of rate yourself? Secondly, you know, this guidance, is it a result of what you are seeing in the U.S., the whole uncertainty? Because, as you said yourself, you have won two mega deals in the last year, and I think Phoenix will also add to your revenue. If you can tell us about that. Saurabh, employee addition, 732 for the full year. What's the forecast going to be for the coming fiscal? What role is AI playing as far as your hiring plans are concerned?
Chandra, if I could request that we come back to you, we'll go to Ritu, and then we'll definitely come back to you. Yeah? Ritu from CNBC, please go ahead.
I wanted to follow up on some of the things that Chandra was asking as well. You know, on the guidance, if you could give us a bit more color, Srini, because even from TCS, we heard, you know, some delay in decision-making. Are you seeing any sort of cancellations, ramp-downs? What are you hearing from clients? Is this more of a conservative estimate given the, you know, uncertain microenvironment we're currently dealing with?
Aparna, also on the margin front, you know, given that you're yourself saying clients are turning more cautious with respect to various aspects, if you're expecting some sort of degrowth in the top line, how will you maintain these margins in this narrow aspirational range you have of 17%-17.5%? What are the kind of levers you have? Overall, would you have the confidence at the start of the year to say if FY 2026 will be better than what we saw in FY 2025, which is not a great year for Wipro? Also, you know, again, to follow up with what Chandra was asking as well, your hiring plans for this year, if you could tell us, we've seen finally a bit of a growth in the headcount in the fourth quarter.
Ritu, you asked a lot of questions, but I'll try to answer them.
First and foremost, I think, you know, how do I rate myself was the question from Chandra, but if you want me to answer that question, I can do that. Your question was more on the guidance. The guidance is baked into all the uncertainties that we see. I think the most important thing is what's happening in the macro environment, right? Today, in addition to the geopolitics, this year, macro environment in the context of tariffs has created a lot of uncertainties to our clients. This uncertainty varies from country to country, markets to markets, sectors by sectors. If you look at it, the big markets that we have, which is the Americas and Europe, clearly the clients there are going through uncertainties. Some industries, especially manufacturing within that automotive and industrial, if you look at it, they are really impacted with what's going on.
First thing the clients would like to do is, how do I reduce my spend at this point in time when there is an uncertainty? Another industry is consumer. They are getting impacted because of how the inflation is going to be, how the consumer spend is going to be, and so on and so forth. I can tell you one example of a client where we're doing a large transformation program for them. They asked us to pause. It was not a cancellation, but it was paused because they wanted a certainty of what's going to go. I think that was one of the things that, you know, that we saw coming into quarter four. Third, if you look at from a banking financial services sector, right, the discretionary spend is being debated internally for the clients.
You know, if the tariffs and other things settle down, hopefully they will, you know, respend that, or else they'll be conservative till such time they have clarity. The issue is more than the tariffs, uncertainties of where it is going to end that we see. By the way, Europe is also going to be impacted because there is a huge trade balance happening between Europe and the U.S., and that is going to impact them. Also, what happens to the tariffs to China, that will have an impact on our European clients and to the U.S. client. With that in the context, we have looked at all the uncertainties that we have, looked at the clients that we have, and based on that, we are given our guidance.
We do not call out the specifics.
I think it was more anecdotal to tell you that, you know, there are large transformation programs that were ready in the fray that were happening, and the clients have decided to pause it, right? It was more anecdotal. We're not sharing the specifics of the deal, Ritu. I'll take the next question that you had asked on how we are planning to maintain our margins. You know, we've really delivered the operating margin improvement over the last eight quarters in a very weak revenue environment. That does give us some confidence that it is possible for us to, you know, continue to hold our margins in a narrow band. As you know, we don't guide. It is going to be, you know, the enormity of the task is ahead of us, and we will be at it.
I think we are counting on the in-quarter execution, and we will see how we fare.
This is [to Chandra] and Ritu, you know, on the hiring piece. You know, if you look at the full people supply chain, you know, three aspects. One is our utilization, where we believe we have had space to improve, especially in the current environment of low growth. Second is our attrition numbers. On a quarter-on-quarter basis, we have seen that dip coming, and the environment also is there. Third, we do not guide for the full year, but what I am seeing is that it will be, we will have to take it as it comes from a growth perspective. We have guided ourselves from a plan of onboarding people, especially from the campuses on a regular basis.
We are also very cognizant that we should not do anything which is onboard people and not deploy them or, you know, hire people and we cannot take, which we have burnt our fingers three years back. We are very, very conscious that we do the right way.
Yeah.
That is where we are. Chandra, I took permission from Nisha to answer your question. I just want to give a little bit of a color to our performance of the last one year. If you look at overall as a company, we have degrown. If I look at Americas, which contributes to 63% of our revenue, it has actually grown 1.2%. If you look at APMEA, which has degrown, in quarter four, it has grown sequentially.
I think our challenge continues to be Europe, which is where I think, you know, you can see the degrowth that has happened. What I can tell you is that we have a new team, and they have started the year with a large deal win, which will start, you know, consuming in the quarters ahead. There is a very strong pipeline in Europe. I think, you know, all we need to do is stay focused on those, and then, you know, we'll get to, get to, you know, where we want to get to in Europe. Now, I think some of the, I'll repeat some of the topics that Aparna also covered. You know, we did a very good job on margin improvements, our large deal wins after a lot of years, two wins in one year.
That gives me a good comfort, confidence that, you know, we have a good engine that looking at the large, these large deal wins. Also, if you look at our overall large deal bookings, both year, you know, year on year has significantly improved, not only the overall, you know, deal wins as well. All these are the metrics or the markers, if you will, that you need to look at. I, you know, I would rate myself based on those markers, but I realized self-rating does not work for CEOs. Not even the CHRO. You are the one.
[Veena], you would like to go next?
Yeah. Okay, Chandra, let me answer. I know Nisha is like, Srini, you are having a monologue right now. You know, if I look at our pipeline across the markets, Americas and Europe, it continues to be strong. That is number one.
Second, as far as we are concerned, we are focused on closing these deals so that we can get, you know, getting into next quarter, these projects can get started. Having said that, the point that we are really watching is the discretionary spend. Hopefully, in the next couple of weeks, there is new support, the settlement of the tariffs, whatever that is, that actually would let the clients to take decisions. You know, I'm very cautious about telling you what's going to happen because you know, things are changing by the week. We will sense and respond to the situation. We do, our clients are doing what I would say is situational planning based upon what they're hearing. What is very important for me and the entire team of Wipro is to stay close to the client, listen and respond.
There are clients which are coming back to us in terms of, can you help us with cost optimization, both short term and long term? That's a great opportunity for us. Can you help us bring in AI efficiency and also reduce the cost, improve the experience, productivity, but I don't have too much of cash. Can you take it out of our run and operate so that I can continue to do change and transform? A lot of conversations are happening around that. I think in the next few weeks and months, we will, you know, we'll have a better clarity in terms of how we will progress. The deal pipeline is strong, and we are at it.
Veena, you can go next.
Good evening, Ritu. Srini, congrats on completing a year. You mentioned that there is a sponsorship program for top performers to succeed.
If you could give us a little bit of details, some details on that, what exactly is it and what sort of client-facing roles besides the regular coding business is it? Also, when you go to campuses, you did not give us a number, but I wanted to get a sense. The Turbo program that you discontinued a couple of years back because of the market, are you going to resume that? Fresher salaries have remained at INR 300,000-INR 400,000 for almost a decade. How do you take that on? You know, how do you look at that? Why do we not see an increase in fresher salaries? Also, for Srini, the next year, what are your priorities and what have you sort of jotted down for your team?
Thanks, Veena. Last time, if I remember, you asked a lot more questions.
This time, you restricted to three. Of the three, two goes to Saurabh. Is that okay, Veena? Let me talk about the priorities, right? I think I called out the five strategic priorities. We'll continue to stay focused on that. How do we continue to grow our existing large accounts across our markets and sectors? That is a focus for us. That is where we are trying to make sure the client-facing team is a lot more consulting-led and AI-powered and with a specific industry knowledge. That is number one. Number two, I talked about, you know, it is a large deals, right? I talked about the pipeline, strong pipeline we have. A significant piece of this pipeline will move to cost transformation, AI-driven efficiencies, right? We got to stay with that as far as the clients are concerned.
Third, field of play, what I call it as industry and cross-industry solutions, which are both consulting-led and AI-powered. I gave an example of the aviation sector. Can you believe that we're going to manage the entire crew management? I'm sure you're going to fly that airline. You know, hopefully you'll come and tell me the crew was happy about it, right? We will continue to stay focused on that, continue to stay invested on that because we have clearly called out what sectors within the sector, what industries, both horizontal and, you know, the vertical solutions that we're going to do. Fourth is building talent at scale. Now, I didn't cover too much about it. I talked more about the leadership, and that's where you responded to it. But skilling, upskilling our people who are on.
Today, when you are talking about AI, you got to know about data. When you're talking about AI and data, you need to have the industry 101 and 201 knowledge. That's a kind of training, upskilling that, you know, we continue to do our people. The last one is client centricity, right? Your NPS score, customer satisfaction score has to constantly improve, right? That means there's an opportunity for you. We will stay focused on our client centricity, which is nothing but execution rigor with speed. Those are the five strategic priorities. We'll continue to do that. Over to you, Saurabh.
Veena, let me first speak on the campus. If you recall, we had said under the leadership of our CEO, we have relooked or reimagined the entire campus process from where we train people and then hire them.
We have gone on more than 50 campuses where we have set up a center of excellence for specific skill sets so that we are able to get the right quality of skill from them. Given this landscape now and this paradigm, we are very clearly not getting back to Turbo or anything. We will continue with what we are doing. Second, on salary, you know, this is a demand and supply issue. It's not a very Wipro-centric issue. You know, there's a market-driven issue. There's an industry-driven issue. I can only say that at any level in the organization, we'll always pay comparative compensation. As things change, we will obviously be changing that. That's what I would keep there.
On the point which Srini spoke about sponsorship, you know, one of the things which we've always believed in and we want to even give it further impetus is about how do we build long-term leadership and strength. Under Srini's guidance, we have identified a set of leaders whom we believe could be doing larger, bigger roles in Wipro in the future. They are the future of Wipro. How do we mentor them, groom them, sponsor them, you know, help them become better? I think that's the program which is what Srini was referring to. That is what we have embarked on, that journey going forward.
Haripriya, you'd like to go next?
Hi, Haripriya from Reuters. Srini, a year ago when you joined, it was still an uncertain environment. It was just a different kind of uncertainty, right?
What would you say, what was your visibility like at the end of, sorry, at the beginning of FY25? What is that visibility like now at the starting of FY26, given all that is going on? Do you see that increase or has it reduced quite a bit? Across client buckets, I know that you said you're focusing on the large deals and pipeline is good. Across client buckets, I noticed that the numbers are down, whether it's $1 million or $100 million. You're down sequentially both. I just wanted to understand why that was the case. Also, Europe and APMEA, the quarter gone past, year over year, I noticed a fair amount of reduction. Is there any geographical specific issue that's happening over there? In Saurabh, you mentioned that, you know, utilization, you still have some headroom. You're already at about 85% odd.
How much headroom do you have to push that? And from the Phoenix deal, how much headcount do you expect to absorb? Because you will be taking on some employees there. That is.
Just a gentle reminder that we have 15 minutes. If you could take the first two questions and then we can come back to you.
Haripriya is hinting me, keep your answers short. Okay. You know, you're all in the media. You have seen how the analysts were predicting how FY2026 would be in January. You saw how they revised their outlook in February. You saw how they dramatically changed in March. Haripriya, I can say that I don't have a crystal ball which tells me how it goes. Going from the context of FY2025 to FY2026, the uncertainties have dramatically increased. Okay.
As you know, as we look at our clients, I think if we stay focused on our five strategic priorities, if we stay focused on our clients and we help them during this period, I think the best bang for the buck because when the growth comes back, when the certainties come back, we will be the partner of choice for them for their growth. That is where we want to focus on.
Yeah, you know, from a client standpoint, Haripriya, you should note that our number of clients greater than $50 million have more or less remained the same, right? The reduced number of clients in the lower buckets is just a reflection of, you know, weaker discretionary spends that, you know, kind of has a bearing on that.
Having said that, if you look at our top five and our top ten clients, they've continued to grow sequentially even in this quarter. On a full year basis, all three buckets have done well. I can tell you that as a portfolio of our top clients, they continue to grow much better compared to the, I mean, the Wipro numbers. If you look at it, you know, top client year-on-year constant currency for even this quarter was 4.4%. Top five grew 14.4%. Top ten grew 24% year-on-year. The year-on-year growth is good in our top ten buckets. That's what you should take heart in.
Rukmini, do you want to go?
Sure, I agree. Srini, Rukmini from Fortune India. The bearishness when it comes to next quarter's guidance that you have given, how much of this is actually Capco's business probably taking a bigger hit?
That is reflecting on the consolidated revenue guidance that you have given. Actually, taking forward what Haripriya was asking you, the absolute numbers have come down indeed. Even when you're talking about $100 million plus kind of clients, that has gone down. While you might say that you are, you know, probably mining your top ten clients deeper, when there is no growth, do you think you can afford to let go even small accounts when, you know, money is trickling? Why not? I have a couple more probably after this.
First up, I wanted to just revise the numbers. The year-on-year growth in constant currency for the top client was 0.6%. For top, the next five was 1.3% and top ten is 3.2%. I did not read the mix. I just want to stand corrected on that.
To your point on, I do not think there is any conscious strategy to let go any client. We are very, very clear. That was something that we did strategic at a particular point in time when we were trying to deprioritize a certain kind of business in a few geographies. I do not think there is any attempt whatsoever to, this is not strategic intent. At the same time, there is a phenomenal focus and energy to grow your large clients even bigger. That is a part of the strategic priorities that Srini spoke of. We will have to continue to stay focused on it. As you see the growth stabilizing and returning, you will start seeing an improvement in this metric as well.
Aparna, I want to clarify on Capco. If you can Capco.
Sorry, what was your question on Capco? Yeah. Yeah.
You know, Capco is, you know, Capco has been, we do not particularly call out for an outlook on one particular unit, but I can tell you Capco has had a very strong performance in Q4. Srini just called out they grew sequentially 6% and 11% year-on-year. They have also had strong bookings. Could this have been better? Assuming the macroeconomic environment was better, it could have even been better. We are very, very happy with the way the asset has been performing. It is one of our, like, you know, the best acquisitions we have made. We are very happy with the performance that they are giving. Yeah. Like I said, we guide at the level of the org. I will be happy to share with you each unit's performance in July when we meet next.
Rukmini, we have to come back to you. There are a lot of people waiting as well.
I like to, I like to push back.
Let's say you are speaking in the top. You need to understand when will these large pieces actually sort of reflect in your total revenue and probably in your payment that is required. That also means that, you know, I can read it to you, these numbers as people are not being able to sort of, you know, crack deeply. What is happening there if you already have a game plan, if you know, large, how to crack these large deals which probably are slipping in your game.
Okay, Rukmini. First and foremost, I did tell you that our large deal wins year-on-year has grown double digits. I hope you got that message. Overall deal wins also have gone up. That's number one.
Number two, one of the large deals that you know, you talked about, right, that we won. It's going, it also depends on the nature of the deal when the ramp-ups of the deal start happening. It so happened from a timing perspective, it's not happening this quarter. Okay? It may happen end of next quarter. That's the reason why I'm optimistic about Europe for two reasons. One is this particular deal going to create the positive impact for Europe. Second, the pipeline that we have. The point I want to make is that we have a deal engine now in place. We have demonstrated that we can win these deals. The point is we got to rinse and repeat this wins going forward. That's where we're going to stay focused on.
If I can just add to what Srini said, some of these large deals have their own ramp-up time. They are not like instant, right? They will take longer. I like, you know, we do think that these large deals are converting into revenues. It will take some time. Some of it is also just timing. We are very confident that it will come through into the revenue growth.
Go ahead, Beena.
Beena from The Economic Times. Just wanted to get a sense where, Srini, when you say that you paused some, I mean, one of your large clients, you know, spoke about pausing one of your projects. Could you give us a sense on, you know, what is the quantum or the percentage of such pauses that you have seen from your deals or the projects over the last quarter?
There is also a lot of talk around cannibalization of revenues because of AI productivity gains. Could you give us some sense, you know, what sort of cannibalization are you doing? Has Wipro passed on productivity gains? What is the percentage of such passing on and the cannibalization that Wipro has seen? One to sort up, you know, you had given a fresher hiring target last year. Has that been met? I think it was 10,000-12,000 for FY2025. Has that been met? What is your outlook for FY2026?
Beena, let me go first if that's okay with you. As far as what we are seeing from a client perspective, this particular anecdotal example that I gave is a client who's sitting right on the tariff box, if you will, which has a huge impact for them. They have to do the transformation.
However, at this point in time, they want to conserve the cash for the quarter. They have paused and then, you know, see how it goes. Then there could be an opportunity for them to relook at, you know, with us, you know, if there's anything that we need to do differently because of the tariffs. I think it was more on that. What we are watching out is more on the discretionary spend. How is that going to play out? Are the clients going to, you know, slow down on the spends that is there? Two parts, right? One is, and the third part is, will they, with the new transformation deal, I'm talking about business transformation deals, will they slow down the decision-making process? Cost transformation is here and now. Business transformation can be delayed for some more time, right?
Those aspects of it, I know I wanted to give the color to you. Second, on the GenAI, not many right now.
Not many. Not many.
This one, this example, you know, it was like I said, right? They were sitting right on the center of tariff situation. Okay. You know, otherwise, the clients will have to take time for any supply chain decision. You know, you can't change supply chains overnight, right? You've got to do a lot of planning process and how to, you know, how to do that. Those conversations, you know, will be upfront, you know, having those conversations with the client and help them in the process of those creating a digitally visible supply chain and make it more future-ready for them.
Now, coming to GenAI, the way I see it, the whole industry is seeing it, at this point in time, I want to say that GenAI is an opportunity for us. In fact, we look at it as three buckets of GenAI. One is how can we change the game for our clients, right? How can we deploy or infuse GenAI for our clients? And how can we, our own organization, right? How can we infuse GenAI and, you know, create that advantage for ourselves, which could be client zero opportunity, which could be a reference for going forward? The biggest thing that we are, if you look at infusing GenAI for our existing management, managed services, if you will, it's going to help us on experience, better experience for our clients. It's going to help us on productivity. At this point in time, those are the two factors.
On the new deals, we take GenAI into the solution itself because in earlier deals, you know, GenAI was not there. Now we are infusing GenAI into that. Whereas the new deals, we are going to infuse GenAI. The other bucket, which I talked about, is change the game, which is where we are driving industry and cross-industry solutions. All the examples that I gave today, everything is GenAI. It actually helps us to differentiate, helps us to make the client more comfortable about the way we can actually transition to the new phase for them. Those aspects, I still see GenAI is positive. I just want to leave that message with you. Sorry. Hey, it finally depends on the solution, right? You know, it is what the conversation we have client by client.
See, some of the clients would want to adopt GenAI here and now. Some of the clients are a lot more worried about the guardrails in terms of how GenAI is going to deploy. I think maybe another three to four quarters, we'll have a much better clarity on that. We are going to infuse AI into a solution before we go to the client. The whole reason why I call out as consulting-led AI-powered industry solution is that while you reimagine the client process and you say agentic AI can be deployed proactively, what does that mean? The productivity benefits are both for us and the customer as part of the solution.
We are running out of time, but we'll try to take a couple of questions. Uma, please go ahead.
Okay. Good evening. I'm Uma Kannan from The New Indian Express. If you look at growth for FY25, it was broadly led by healthcare. You know, energy and other verticals had a negative number. Even the current U.S. tariffs and macro environment, can you give some color on your verticals and what can we expect in the present quarter or in the FY26?
You know, we did speak about how the macroeconomic uncertainty is being played out. We do feel that some sectors like consumer and manufacturing are directly impacted. Therefore, it is likely to play out in those sectors a lot more compared to others. Other sectors will also feel the indirect impact. We spoke about how BFSI has been doing very well for us, particularly around Capco, APMEA, and even in the U.S.
Now, some of these spends, as we get into the next quarter, could, you know, be impacted as a result of, you know, the uncertainty. Otherwise, these three geographies have done really well. We are going through some client-specific issues in BFSI in Europe, which is impacting our overall BFSI growth rate. If you actually had to look at just Capco and even Americas, they've done really well in FY2025. Energy EMR has actually grown sequentially. That is the first dot in the plot. We will have to be at it. Like I said, there is a macroeconomic uncertainty overhang on that. Health has been doing very well for us. You know, we feel very confident about it. There will be some, you know, course corrections that a few of our clients may make given the environment in the U.S.
Overall, we feel it's very, very, very confident. Across these industries, we do have a very, very strong pipeline. Overall, you know, we are going to stay focused on closing that pipeline, converting so that we can have a stronger rest of the year. That's the end of it.
Just to add, can I add a color to what? See, one of the things, you know, the way we are looking at it is if you look at the industries and if you look at the markets that we do it, we can do a heat map. Where are the clients who are going to conserve cash in the context of a discretionary spend? Where are the clients who want to ask us to help them on the cost transformation piece? It's a, you know, it's a balancing act of it.
I do not want to go back to all the industries that Aparna called out. I want to let you know that even in consumer and manufacturing, there is an opportunity because the clients have to take the cost out. You know, in tariff, what happens straight away is, you know, it is like a kind of a tax that you have to pay for it. Either you transition that to the consumer, or you may part to the consumer, part you hold back, which will hit your bottom line. You have to take the cost out somewhere. That is an opportunity for the client. That is where, you know, the conversations are happening as well.
Okay. Aparna, one quick question. Where do we expect these margins to be in the next three to four quarters?
We do not guide for the margins. A fairer endeavor would be to be in narrow band in the coming quarters. You know, the guidance we have given for revenues. And it's an enormous task for us to sustain. We've improved margins over the last six quarters. We are happy with that performance.
We are over time. We'll take one last question.
Yeah, I am Ayushm an here from Entrepreneur India. I have been late to ask. It has been partially asked. Srini, I mean, you have completed a year here now, you know. I just want to ask, what are the few things that you see? You have made a lot of visible changes. According to you, what percentage of the transformation that you had in mind has been already done? How much of it is left? That is one.
See, I mean, during Thierry's time, we saw a lot of acquisitions and all that Wipro has made. Is Srini Pallia making a conscious call to go soft on acquisitions?
First and foremost, Ayush Man, you know, we're going to be consistent with our five strategic priorities. We want to execute them with speed and rigor. You know, if you notice, the last four consecutive quarters, I've consistently come and given an update on that. Second, M&A is strategic to Wipro. When we have the right opportunity and it falls into our strategic priorities, you know, we go for it. That is all. We are constantly looking for an opportunity around that, which will, you know, help us, you know, drive our strategic priorities. The answer is yes. That's something that is part of, you know, inorganic growth for the future as well.
I just want to conclude your question. You'd asked that we actually did around 10,000 of hiring from campuses in the last fiscal, what we had called out. You have done that.
Yes.
Outlook, I spoke about it, you know, given the environment. We intend doing it, but we have scope from a lower attrition, higher lower utilization. We'll see how it goes.
Okay. We'll go for one last question. Avik.
Hi. Three questions.
Avik's hand, but I saw the three ladies raising the hand. Of course, you're the boss. Okay. Sure.
Let's start with Srini. Srini, when you talk about the, you know, the cost optimization deals and the digital transformation deals, just wanted to know that while cost optimization takes a front seat, have you already seen small GenAI deals or POCs that you were doing with your clients? Have they been impacted?
Have you been told by the clients to take a pause on that as discretionary spend slow? That's the one question. Aparna, just two couple of follow-ups. You told about how, for obvious reasons, large deals take time to ramp up. Given this period of uncertainty, you know, lying ahead, do you expect these large deals to actually take longer time to materialize than, you know, what you would obviously expect? As cost optimization deals take precedence, do you feel margins are going to come under pressure, at least for the next fiscal? Sorry, just one last thing. I don't know whether this has been already asked, but what about the, you know, the hikes for the fiscal? Are you putting a pause? Are you relooking? Or would it just go as usual?
Avik, I'll give you a quick answer. Clients continue to invest in GenAI POCs.
There are clients who are moved from the POC to actual projects and implementation. I'm personally very excited with the opportunity of GenAI in the context of changing the game for our clients.
I think in terms of timing of how these large deals convert to revenues, they're very, very deal-specific. You know, there is no one answer. There's no trend that we are seeing that indeed there will be a delay. We are not anticipating that at all. We do think some of these large deals that we've taken will follow through as per what we had originally in message. In terms of vendor consolidation deals and cost takeout deals that seem to be really, you know, a big vital part of our pipeline, yes, they do put pressure on margins.
Therefore, we will have to do everything around improving our fixed price productivity, rationalizing our, you know, overheads. We have done a lot of rationalization of G&A spends. We spoke about how utilization, you know, again, we see some opportunity to improve. We will have multiple levers in order to offset that. Our priority will be to invest for growth and invest in clients.
Last hikes you spoke about. I want to let everybody recall that we were the ones who did hikes ahead of time in September. We had done the previous time in December. We are still very far from, you know, and as you said, in an uncertain environment, we will decide closer to the date.
Hello, Shilpa from The Times of India.
If you can help us understand with the rise in GCCs, you have set up a separate GCC rise that you've announced very recently. Are you going to put out a separate leadership structure that will also accelerate your GCC footprint? Secondly, how well poised are IT companies to keep this business in-house, considering there is the BOT? If you really focus on the B and O, if the transfer out doesn't happen, how well poised are IT companies to, you know, capture this business without all the Fortune 500 companies setting up their own shop outside? At this point in time, do you see some sort of a cannibalization of that business?
Shilpa, first and foremost, I've been talking about GCC last three quarters. It's nothing new. I don't know if you're referring to some announcement. We have not made any announcement.
Somebody has written about it. That's perfectly fine. GCC is strategic to Wipro. We will invest in BOTT, Build-On-Term, Transform as well as part of that. The clients are looking out for experience and expertise around that. Having said that, different clients have different ways of running their BOTs. What's most important for us is the opportunity for us to help them set up GCC. The other one is partner with GCC because the kind of innovation, the investments that we do on the engineering side as well, they want to leverage as well. We are going to be part of their ecosystem, at least in India, in the context of the GCC. To me, GCC is strategic. We will continue to invest on that. We will partner with our clients.
We have a lot of clients where we have invested in this aspect.
We will have to conclude our Q4 FY25 earnings press conference. For all follow-up questions, please reach out to the media relations team, and we'll be happy to help you. Thank you, and we'll see you next quarter.
Thank you, Wipro.