Wipro Ltd Q4 FY2025 Earnings Call

Ladies and gentlemen, good day and welcome to Wipro Limited Q4 FY 2025 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Dipak Bohra, Corporate Treasurer & Investor Relations. Thank you, and over to you, sir.

Thank you, Yashashri. Warm welcome to our Q4 Financial Year 2025 Earnings Call. We will begin the call with Business Highlights and Overview by Srinivas Pallia, our Chief Executive Officer and Managing Director, followed by Updates on Financial Overview by our CFO, Aparna Iyer. We also have our CHRO, Saurabh Govil on this call. Afterwards, the Operator will open the bridge for Q&A with our Management Team. Before Srini starts, let me draw your kind attention to the fact that during this call, we may make certain forward-looking statements within the meaning of Private Securities Litigation Reform Act 1995. These statements are based on Management's current expectations and are associated with uncertainties and risks, which may cause the actual results to differ materially from those expected. The uncertainties and risk factors are explained in our detailed filings with SEC. Wipro does not undertake any obligation to update the forward-looking statements to reflect events and circumstances after the date of filing. The conference call will be archived, and a transcript will be available on our website. With that, I would like to hand over the call to Srini.

Thank you, Dipak. Hello, everyone. Thank you for joining us today. It's hard to believe that it's already been a year since I took over as CEO. 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 a strong sign that our large deal engine is working and continues to expand. 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 large deal bookings in FY25. We have continued to invest in our people, skilling them for the new AI wave. Our execution rigor with speed has been acknowledged by clients. And that's reflected in the clear improvement in our Client Satisfaction Scores. We have done all of this while strengthening our margins. It's a meaningful achievement in the context of such ongoing change. The global industry environment remained uncertain for most of the year, and the recent tariff announcements have only added to that. I have been speaking to clients across sectors to understand how things are playing out on the ground. Even though the underlying demand for tech reinvention remains strong, clients are approaching it more cautiously. In fact, they are focused on cost, speed, and AI-led efficiency, and that's exactly where we are leading it. We see this as an opportunity to move with purpose, make smart bets, and stay committed to our five strategic priorities: 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 quarter four and FY 2024-2025 performance. All the growth numbers I shared will be in constant currency. Our IT Services revenue for quarter four was $2.6 billion, reflecting a sequential decline of 0.8% and 1.2% on a year-on-year basis. The order booking for quarter four was at $4.0 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 a 110 basis point 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% compared to FY 2024. Now to our Strategic Market Unit Performance. Americas 1 grew 0.2% sequentially and 6% on a year-on-year basis. Americas 2 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% sequentially and degrew 4.9% on a year-on-year basis. 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 & Communication degrew 0.9% sequentially and 1.1% year on year. Energy, Manufacturing and Resources grew 1.1% sequentially and degrew 7% year on year. 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 five strategic priorities. As I mentioned earlier, we have continued to see strong momentum in large deals. In quarter four, we closed 17 large deals with a total value of $1.8 billion across markets and sectors. 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%. Now let me highlight two recent wins. A global technology leader has chosen us for a major five-year transformation program. We will deliver AI-Powered end-to-end IT Services, completely reshaping the employee experience for 200,000 users across 200 countries. Our solution involves proactive support, intelligent self-service, and personalized digital interaction. My second example is our recent partnership with the leading global food distributor. We are taking over their entire IT infrastructure and corporate application which includes HR, Finance, and Legal Systems. We are leveraging AI solutions, and we will drive automation and simplify user interactions. For our clients, this will result in higher efficiency, lower costs, and better user experience. As we all know, AI has been part of deal conversations for a while. But this year, it becomes 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. We continue to focus on our large accounts in our core markets and priority sectors. In quarter four, our top 5 and top 10 accounts grew 0.3% and 1.1% respectively on a sequential basis. Let me also share an example that shows our momentum in strategic accounts. In quarter four, a leading Indian private bank expanded our strategic partnership as part of a business-focused digital transformation. We will provide the bank AI-Powered solution to strengthen compliance management and address the critical need for regulatory compliance in addition to enhancing the overall experience for the bank. This will also help the bank boost operational efficiency and realize its growth ambition across various functions. We continue to create impact for clients through our consulting-led AI-powered industry and cross-industry solutions. This was our third strategic priority we had called out. In this context, let me talk about a recent win in the Aviation sector. A well-known Pacific airline chose us to modernize its crew management and operations systems in quarter four. In fact, we were selected for our proven ability to future-proof clients' IT platforms 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 are starting to show results. Our latest third-party annual customer satisfaction survey clearly shows improvement in overall satisfaction scores and NPS. I would like to thank our teams who have made this possible. As you are aware, we have also realigned our global business lines effective April 1st to better meet our customers' needs. This change will help us deliver stronger business outcomes for our clients. Finally, supporting and growing our global talent has been a top priority all year. You might remember that last quarter I spoke about our focus on leadership development and how we are building future-ready leaders through our Wipro Leadership Institute. In fact, we have moved our top performers into key client-facing roles to ensure continuity and stability, and we have also launched a sponsorship program to help them succeed. Now a note on guidance before I wrap up. Given the uncertainty in the environment, we expect clients to take a more measured approach going forward, especially on large transformation programs and discretionary spending. 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. Let me now turn it over to Aparna for a detailed overview of our financials. Thank you. Aparna, over to you.

Thank you, Srini. Good evening, and good morning, everybody. Let me share a quick update on our financial performance for the quarter ended 31st March 2025, and after that we will take questions. Our IT Services revenue for Q4 sequentially declined by 0.8% in constant currency terms. This is within our guided range. For FY 2025, our IT Services revenue declined by 2.3% in constant currency terms. Our rigorous focus on operational improvement has ensured that the margins have steadily improved over the last few quarters. For Q4, operating margins at 17.5% expanded by 1.1% year on year. This brings our FY 2025 operating margin expansion to 0.9%. As we enter FY 2026, we are faced with headwinds on account of an uncertain macroeconomic environment that is putting downward pressure on our revenues. Our endeavor would be to maintain these margins in a narrow band in the coming quarters. Our net income grew 6% quarter on quarter in Q4 and 19% for the full year. Our EPS for the full year was at INR12.6, a growth of 20% year on year. We finished the financial year with a free cash flow as a percentage of net income at 118%, which takes our gross cash including investments to $6.4 billion. In Q4, our other income grew by 45% sequentially and our accounting yield for the average investments held in India was at 7.9%. Our ETR was at 24.3% for Q4 2025 against 26% in Q4 2024. Our hedges continue to be in line with our policy. We had about $2.4 billion of Forex derivative contracts as hedges at the end of Q4 2025. In terms of guidance, to reiterate what was stated by Srini, we expect the revenues from our IT Services Business segment to be in the range of $2.505 billion to $2.557 billion. This translates to a sequential guidance of -3.5% to -1.5% in constant currency terms. With that, I turn this over back to the operator for questions.

Thank you very much. We will now begin the question-and-answer session. We will take our first question from the line of Nitin Padmanabhan from Investec.

Yes, hi. Good evening. Thank you for the opportunity. Srini, just wanted your thoughts on which verticals are you seeing the highest impacts at this point in time?

Sorry, Nitin. I was speaking on mute. Hi, Nitin. If you look at sector-view, the way the economic environment has become uncertain on the back of tariff increases, we are seeing this impact not just in the U.S., of course, but also in Europe. Similarly, we are also seeing across sectors directly or indirectly these impacts. Some sectors have been impacted more, like consumer and manufacturing, specifically automotive and industrial manufacturing. We are seeing indirect impact on most of the sectors. For us, the clients in all the industries are taking a lot more cautious approach at this point in time. They are also doing scenario planning, because they want to see when this whole thing settles down before they start making more business decisions. And that's how currently it's playing out, Nitin.

Okay. So, how are you seeing BFSI broadly, currently, in terms of how they are thinking about things, both in the U.S. and Europe?

Well, if you look at our results, we have been seeing good traction in BFSI, specifically in the U.S. and in APMEA. Also, our Capco business, both in terms of revenue and order book, has been strong. I think what we faced are headwinds in Europe in the BFSI sector. But again, the good news is that we have a good pipeline and deal momentum. Obviously, if you look at the kind of deals that we are getting, we are focusing on apps and IT Infrastructure modernization. There are opportunities around BPS, which is Business Process Services and Cybersecurity, and we are also looking at opportunities in Consulting, which is a reflection of our Capco business. Furthermore, in some of our solutions such as Asset and Wealth Management, customers are relooking at how they can leverage AI-powered solutions. We are also looking at insurance platform digitization and payments—all around our AI-infused industry solutions. We are seeing traction on those fronts. What we are doing is prioritizing how Wipro and Capco can come together, bring in more synergies, with Capco being the spearhead while Wipro executes end-to-end. I think this is also helping us as we move forward, specifically in the BFSI sector.

Right, so you are not seeing any specific weakness in the near-to-medium term here. They continue to spend. You are not seeing any holdback or spending from a BFSI perspective?

There are two perspectives, Nitin. One is, like I said, the pipeline is strong, but the clients are cautious about the spend, especially in BFSI, which is discretionary. The early signs are they are waiting and watching. Some decisions have slowed down. If uncertainties settle in the next few weeks, we hope the clients will start taking decisions on these project opportunities, because that's the need of the hour for them.

Sure, perfect. This is very helpful. I'll get back in the queue. Thanks a ton.

Thanks, Nitin.

Thank you. We will take our next question from the line of Abhishek Kumar from JM Financial. Please go ahead.

Yes, hi, good evening. Thanks for taking my question. Srini, first of all, congratulations on good dealings in a difficult environment. My question is on deal to revenue conversion. If we look at our book-to-bill, over the last two years, it has been consistently, at least on an LTM basis, above 1.3 times, but it has not really translated into revenue growth. With the better performance in Capco, where the conversion would be even better, it seems that excluding Capco, the conversion is quite soft. I wanted to understand what has driven this poor conversion so far. Is it cancellations? Is it lower ACV growth due to longer tenure? And which of these two do you think will change for us to build some growth, given improved deal wins?

So, Abhishek, as you know, the booking to revenues is very difficult to correlate within quarters, because the timing differs from deal to deal. For example, the large deal that we have secured in Q4 that we announced, will take some time for it to ramp up. There is a schedule that's signed off with the client and there's work to be done before us to begin that. So, there will be some timing gap that will always be there in case of some of these large deal wins that we've had. You are right that consistently we've won more, and that is adding to revenue, even with a deferred timing. What gets reflected in the revenue is also some of the ramp downs that happen as a result of lower discretionary spend and project spend going down. We need to win more, we need to fill that bucket a lot more for it to start reflecting in net revenue growth. That’s how I would characterize it. We are happy with the way the engine has started to crank. With the same momentum that persists on large deals as the medium and small size deals also return, I think you will see a pickup in revenue growth.

Sure, maybe a quick follow-up there. Do you think those ramp downs, which are client-specific, are now largely behind us? And therefore, it is just a matter of timing before these deals start to reflect in revenues?

Abhishek, let me give you some kind of commentary on what we saw. If you look at it, we started quarter four on a positive note, but gradually during the quarter, the sentiments turned negative. I think this is because of the tariff hike and anticipation around that, which had a cascading impact. This impacted our revenue growth across sectors and markets. An example I can share is we were doing a large SAP program, which was critical for the client in the consumer sector, and when the client heard about the tariff situation, they paused the entire program, not because they don't want to do it, but they wanted to understand the certainties surrounding the tariff situation. This is one good example. Similarly, in Europe, some of the clients have slowed down transformation projects. It's not that they have paused it, but they are relooking at the timelines. We also noticed several instances of volume drops in some of our existing accounts—some of these are due to delays in initiating projects and others may also stem from ramp downs. The way I see it is that this is a transitional phase, and, obviously, I can't predict how the tariff situation in the macroeconomic context will pan out, but it should gradually stabilize. What we are doing is working closely with clients, gaining insights on scenario planning to pivot according to how they view their business moving forward. I think that's crucial for everyone at Wipro, understanding and responding to our clients' situations.

Well, that's helpful. Thank you, and all the best.

Thank you.

Thank you. We will take our next question from the line of Manik Taneja from Axis Capital. Please go ahead.

Thank you for the opportunity. Srini, just wanted to pick your brains on two things. Number one, we continue to see pressure in Europe through the course of the last several quarters. What do you think is driving that? The second related question is that similarly on a segmental margin standpoint, while Capco has recovered, we did not see improvement in terms of the segmentary margins for the European geography. If you could talk about what's dragging the margins here.

Sure. I think your observation is right. If you look at our revenues for the last year on a full year basis, Americas has actually grown 1.2%, while Europe has shown a degrowth. APMEA experienced a decline initially, but in quarter four it turned sequentially positive. The situation in Europe is challenging. We have a new leadership team in place, and there is a strong pipeline of deals. We recently won a large deal, Phenix Steel, which is set to kick off in a few months as per the contract terms. Our focus on the deals we currently have should help us achieve positive momentum in Europe in the coming quarters.

Manik, can you repeat your question on margin?

So, Aparna, my question on margins was that, during the second half of FY23, we faced some pressure in Capco, and we attributed the margin decline seen in European geography to the drag from Capco. Although Capco has recently performed well, we did not see recovery in segmentary margins for Europe. Can you explain what's causing that?

Your question is a bit unclear. From what I gathered, you raised a point about Capco possibly dragging down Europe margins. Capco has been performing strong in terms of growth and bookings, and there has been an improvement in margins as well. However, Europe margins have also been impacted by other ramp downs we've encountered and business areas outside of Capco.

Sure. Do you have any sense on when we might start to see some of these pressures recede?

In Europe, we have secured a very large deal, which should start ramping up throughout the year, especially in the second half. We also have a solid pipeline that we think we can close between now and September, which should also add to our recovery.

Sure.

Does that answer your question, Mr. Taneja?

Yes. Thank you. I will get back in the queue.

Thank you. We will take our next question from the line of Vibhor Singhal from Nuvama Equities. Please go ahead.

Yes, hi, thanks for taking my question. So, two questions from my side. Srini, regarding the overall macro weakness you mentioned, can you provide a bit of color? Was some part of the weakness also responsible for the slightly lower growth reported this quarter? Given that we are exiting FY25 on a negative, do you think there's a possibility we will record positive growth in FY26, or will FY26 also likely be a year of revenue decline just like FY25 was? And then I have a follow up for Aparna.

I'm sorry to interrupt, sir, you are on mute.

Yes, sorry. Vibhor, first and foremost, we don't give a full year guidance. Having said that, the recent developments, especially the macroeconomic situation, including the tariff situation, is something we are monitoring closely and observing how our clients are responding. At this stage, our quarter one guidance reflects the best visibility we have, and we will share updates as the situation clarifies. Also, as Aparna mentioned regarding the Phenix deal we announced in quarter four, we anticipate ramping it up starting H2, which should help uplift our revenues.

Got it. The initial part of my question was whether there was any weakness also felt in this quarter that contributed to us nearing the lower end of the guidance for Q4?

So, yes, Vibhor. If you look at the last few weeks, the economic environment has changed significantly from January through March. The impact of tariffs is felt not just in the U.S. but also in Europe. It's influencing various sectors, with some seeing direct impacts while others are seeing indirect effects. Specifically, we have observed direct impacts in the consumer and manufacturing sectors, especially automotive and industrial manufacturing, where clients are evaluating their cash positions and focusing on reducing costs. They are engaging in significant scenario planning with their global manufacturing operations in light of tariffs and moving products and components across borders.

Got it, sure. Thank you for answering my questions. Just one follow up for Aparna. I believe margins have remained resilient throughout the year, and you mentioned looking at margins in a narrow range going forward. Given weak growth in FY26 and macro headwinds, do you see potential risk to margins from current levels? Conversely, if growth returns, particularly in the second half, could that lead to a jump in margins?

So, Vibhor, it's very difficult to predict how revenues will perform. If you're asking whether weak growth will pressure margins, the reality is there will be margin pressure due to two headwinds. First, we face a weak revenue environment, and second, many of the deals in our pipeline involve cost takeout and vendor consolidation, which inherently come with pricing pressure and competition. We will prioritize growth and investment in our clients. Given these considerations, our objective is to keep margins within a narrow band despite these challenges. We have focused on managing bench costs, driving higher productivity in fixed-price programs, and optimizing some of our fixed spends without compromising our operational efficiency. Thus, our goal remains to maintain at least a narrow range in the upcoming quarters.

Got it. Thank you very much for addressing my questions, and I wish you all the best.

Thank you.

Thank you. We will take our next question from the line of Kumar Rakesh from BNP Paribas. Please go ahead.

Hi, good evening. Thank you for taking my question. My first question is about your sequential headcount increase after a couple of quarters of decline. Given your strong total bookings and large deal wins in the quarter, I would have expected that the next quarter would see decent growth. However, your midpoint guidance implies you are looking at one of the lowest growth rates outside of the COVID period. What is incrementally causing your weak guidance? Are there specific ramp downs you're anticipating? Are volume declines factored in?

There are two aspects to this. Clearly, we have spoken about the uncertainty in the macroeconomic environment that's playing out. While Capco has delivered strong Q4 numbers, the macro environment is affecting other sectors, like consumer and manufacturing, which we see experiencing softness. Additionally, the weakness in Europe will likely continue in Q1. We hope to build momentum based on the large deal wins secured in Q4 and Q1.

Rakesh, let me add some insights here. Based on my conversations with clients, we are noticing that large-scale transformation projects are being paused or delayed. Clients have the budget but prefer to pause and understand where the situation is heading before committing to further investments. We are also seeing cost pressures and a demand for tech-driven efficiencies, which remains strong. The pipeline is robust, with a balanced mix of large and small deals. Although Europe is soft, we still see significant opportunities there. Our focus now is on closing these deals quickly for revenue conversion in the next few quarters. It’s a different landscape compared to COVID. Our clients are not stopping business, rather they want to understand the tariff impacts on their business and make informed decisions.

Thanks for that, Aparna and Srini. My second question takes a longer-term view on full year performance and recent history. This is the second year we’re seeing revenue decline. Looking at where we are exiting this year, even if growth picks up, we will likely experience another year of revenue decline in FY26. Given the likelihood of three straight years of revenue decline, what do you think is the problem contributing to our underperformance, and what actions are being taken to address it?

It’s a valid concern. FY25 was a mixed year for us. We made progress across several fronts. However, if we analyze revenue, while we de-grew 2.3% in FY25, the Americas region grew 1.2%, which contributes around 63% of our revenue. Conversely, APMEA had a 9% decline but recovered positively in the latter half of the year. The situation in Europe has been challenging, experiencing a 7% year-on-year decline. Our goal is to stabilize and drive growth in this region, supported by new leadership and a strong deal pipeline. A recent major deal with Phoenix Steel should help us leverage momentum in Europe. We should aim to focus more on the deals we have, which are key to our growth trajectory.

Great. Thanks a lot, Srini.

Thank you. We will take our next question from the line of Gaurav Rateria from Morgan Stanley. Please go ahead.

Hi. Thank you for taking my question. I have a couple of them. Just the first question for Srini. What does your guidance assume regarding the normalization of the environment? Is the expectation that conditions remain difficult throughout the quarter, or do you expect some improvement as the quarter progresses?

Gaurav, it's challenging, and I don’t have a crystal ball for predicting the macro environment's trajectory. Our guidance for quarter one is based on the best visibility currently available, factoring in varying demand scenarios. The lower end reflects potential for worsening conditions while the upper end assumes demand stabilizes or improves. We’re cautiously optimistic but also realistic about the challenges ahead.

Sure, Srini. Thank you so much for that explanation. My second question relates to total contract value (TCV). The total TCV minus indiscernibles shows a decline on a trailing 12-month basis of around 13% to 14% year-on-year. Is this impacting the conversion of our order book into revenue, given that these smaller deals convert into revenue faster?

If you look at our overall bookings, we closed the full year with $14.3 billion. There has been a decline year-on-year, but our large deals have seen a pickup, which is something we are targeting to improve. Larger deals typically take longer to convert compared to smaller ones, but any growth in bookings will have an impact on overall revenue. While the slowing of smaller and medium-sized bookings is affecting us, we are optimistic about our large deal pipeline.

Got it. Last question for you, Aparna. When revenues decline, utilization rates could be impacted in Q1. If you're to maintain margins in a narrow band, is it fair to assume utilization should remain around 87% to 88% to hold margins steady?

Utilization is one of the levers at play, and we need to maintain or improve levels despite a weaker revenue environment. However, there are other levers, such as fixed-price productivity improvements and optimizing overhead costs, that we can rely on as well. Utilization will certainly be a focal point, but we are deploying multiple strategies to maintain margins.

Thank you very much.

Thank you. We will take our next question from the line of Surendra Goyal from Citi. Please go ahead.

Thanks. Srini, just one question regarding your sales and marketing expenditure, which is down by high single digits year-on-year in FY25 at a time when you are losing market share to peers. Do you think anything needs to be done differently, or do you believe you are doing enough in your investment strategy to catch up with peers on growth rates?

Surendra, you should probably look at our S&M expenditures year-on-year for clarity. There could be quarterly fluctuations, but I'd like to assure you that we have not reduced our sales and marketing spends, particularly on the employee compensation side. The reductions may relate more to G&A roles, managing those that are not client-facing and are instead being reassigned to lower-cost regions. We are committed to investing in sales, especially in areas like cross industry solutions and AI.

Absolutely, just to emphasize what Aparna said, we continue investing in marketing and sales in strategic areas. Our focus remains on growth in consulting, AI-powered solutions, and overall innovation. We do not see this as a cutback; it’s about smart allocation where client-facing roles remain prioritized while optimizing costs.

Understood. So you believe you are doing enough? Thank you.

Thank you. We will take our next question from the line of Ankur Rudra from JP Morgan. Please go ahead.

Hi, thank you and thanks for the guidance as well. Can you elaborate on the extent of the ramp downs, cancellations, and delays you mentioned that happened in the last two weeks since the tariffs were announced? How much of this is fresh, and is that what you are factoring into both ends of your guidance?

Our guidance reflects the current visibility we have, Ankur. It certainly takes into account the macroeconomic environment and the visibility of spending from our clients. It factors in the uncertainties we've discussed.

Right. I was hoping to get a bit deeper into your previous answer regarding if macro improves at the upper end and if it worsens at the lower end. How much has that changed in the last two weeks?

Ankur, following a 90-day pause on tariffs, we have begun to see some stability reflected in the last two weeks. However, we cannot predict how long this will last, especially with uncertainties around China and other factors. Our guidance is based on the best visibility we currently have, taking into account both potential improvements and setbacks.

Okay. Understood. Speaking of AI, how is AI-related productivity impacting your contract renewals, and are you proactively infusing AI into existing deals? Is that what is putting existing TCV numbers at risk?

At this stage, I am not seeing any significant impact on revenues or margins. We are leveraging the benefits of GenAI where applicable, which sometimes frees up client budgets. We are using GenAI to generate incremental work and offset some of the revenue drops you're referring to. It's important to note that we continue to look for new opportunities for growth, not only to operate better but also to fundamentally change the game for our clients through innovative applications of GenAI.

Yes, if I can just squeeze in one last question. You mentioned success in your large accounts, but if I look at the client metrics for the last several quarters, especially this quarter, softness was observed across sizes. Can you clarify how much of this is from FX versus client losses or cuts in discretionary spending?

Yes. If you look at our number of $50 million clients, they broadly remain unchanged. Our top five or top ten clients are all growing, and even in Q4 of 2025, on a year-on-year constant currency basis, all three have grown. The decline in active clients reflects the overall revenue environment and lower discretionary spending.

Appreciate it. Thank you.

Thank you, ladies and gentlemen. That was the last question for today. I would now like to hand the call back to Mr. Dipak Bohra for closing comments. Over to you, sir.

Yes. Thank you all for joining the call. In case we could not take any questions due to time constraints, please feel free to reach out to the Investor Relations team. Have a nice evening. Thank you so much.

Thank you, members of the management team. On behalf of Wipro Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.