Wipro Ltd Management Discussions

The following discussion and analysis should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in Item 8 of this Annual Report on Form 20-F. This section and other parts of this Annual Report on Form 20-F contain forward-looking statements that involve risks and uncertainties. Forward-looking statements can also be identified by words such as "ambition," "anticipates," "expects," "believes," "plans," "predicts," and similar terms. Forward-looking statements are not guarantees of future performance and our actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to those discussed in the subsection entitled "Risk Factors" above.

Overview

Wipro Limited is a leading IT services and consulting company, focused on building innovative solutions that address clients most complex digital transformation needs. From GenAI and cloud computing to data, from silicon chip design to blockchain, our consultants, analysts, designers, and engineers work on solutions that unlock our clients boldest ambitions.

With over 230,000 dedicated employees (including support functions) across six continents, we deliver on the promise of helping our customers, colleagues and communities thrive in an ever-changing world. Our transformation continues as we become an AI-first organization. With our Lab45 GenAI platform and the WeGA acceleration studio, we help our clients unlock business value from AI, all within responsible AI guardrails.

Trend Information

The business environment showcased resilience amidst the economic uncertainties in the fiscal year ended March 31, 2025. Despite a decline in global inflation, services inflation remained persistent, putting pressure on monetary policy normalization. Growth in advanced economies remained modest while developing economies experienced slightly higher growth rates, driven by declining inflation and increasing capital flows. Supply chains continued to face disruptions from geopolitical tensions. Enterprises adopted a cautiously optimistic outlook by investing in technologies to stay resilient and mitigate risks.

The recent tariff announcements have resulted in heightened uncertainty and have impacted the demand environment in certain sectors. Considering this, we expect our clients to take a more measured approach on their IT spending and continue to focus on cost optimization, which may result in more cost takeout and vendor consolidation deals. However, the underlying demand for technology re-invention remains strong, and we believe the current situation will gradually stabilize as more clarity emerges.

Enterprises globally will continue to focus on cost takeout opportunities and productivity improvements to achieve operational excellence, while addressing regulatory obligations and improving consumer experience. Sectors like banking, financial services, insurance and consumer are expected to invest in process innovation addressing rising consumer expectations, whereas energy, manufacturing and automotive industries are likely to focus on cost takeout opportunities with efficient supply chain initiatives. These factors are expected to result in increasing investments in AI-powered automation, human-centered AI, and cybersecurity. Enterprises prioritizing improving consumer experiences and supply chain resiliency will increase their adoption of GenAI, data and cloud transformation and migration. This will further necessitate building a workforce for the future by regularly upskilling in new age technologies.

IT Services

Global IT service providers are equipped to support enterprises across various industries with a wide range of offerings for digital transformation cutting across consulting, application development, maintenance and support, R&D, technology infrastructure, and business process services.

According to the NASSCOM Report, in calendar year 2025, global IT services spending will be driven by vendor consolidation and cost takeout initiatives. Data and cloud spending will continue to remain strong, while core AI spending is expected to increase with more defined use cases. The top five digital priorities are anticipated to be AI and ML (including GenAI), cybersecurity, cloud and edge, big data and analytics, and robotics and automation, accounting for 60-80% of the total digital spend. We expect that increased interest in taking AI and Gen AI solutions to production from proofs of concept will accelerate enterprise investments in AI use-cases, digital and cloud transformation, and data modernization as a foundation to realize the benefits of AI, resulting in significant opportunities for the IT services industry.

We have defined five strategic priorities to accelerate growth in the IT Services segment:

(1) building large accounts in profitable markets, prioritized sectors;

(2) sourcing, shaping and winning large deals;

(3) differentiating with industry and cross-industry solutions;

(4) building talent at scale; and

(5) the five pillars of client centricity.

Our growth will be supported by our focus on AI and M&A.

In fiscal year 2025, our IT Services segment revenue decreased by 0.63%, while our revenue from top five and top ten IT Services customers increased by 4.8% and 5.9% year-over-year, respectively.

Our large deal (i.e., deals greater than or equal to U.S.$ 30 million in total contract value) order booking in total contract value terms in fiscal year 2025 was U.S.$ 5.4 billion as compared to U.S.$ 4.6 billion in fiscal year 2024, an increase of 17.4% year-over-year. Our order booking in total contract value terms in fiscal year 2025 was U.S.$ 14.3 billion as compared to U.S.$ 14.9 billion in fiscal year 2024, a decrease of 4.0% year-over-year.

Operating profit as a percentage of revenue in our IT Services segment for the year ended March 31, 2025 was 17.07%. We are focusing on the following levers to improve our operating profit:

Continuously reviewing our pyramid structure and optimizing span of control of the management team;

Using next-generation technology including GenAI to drive automation, superior customer experience and maximizing returns;

Reskilling and redeploying existing resources and optimizing utilization of our existing talent pool over a variable workforce (i.e., sub-contractors);

Optimizing costs relating to travel, facilities and other discretionary spending like marketing events;

Improving price realization to combat inflationary environment;

Differentiating our offerings by providing premium services using our consulting-led, AI-powered approach;

Aligning our resources to expected demand and pivoting ourselves to meet new opportunities;

Moving towards higher valued transformation projects and reduced low margin projects;

Driving revenue and cost synergies of acquired businesses;

Investing in non-linearity through our IP portfolio that de-links the linear relationship between revenue and efforts expended; and

Optimizing our support headcount and other administrative overheads.

However, we anticipate challenges in improving our operating profits, largely due to the following reasons:

Limited ability of the market to accept increases in prices for our offerings to fully offset incremental costs;

Investments in acquisitions with onsite capabilities that can potentially contribute to lower margins;

Annual increases in salaries, progressions and bonuses;

Investments in consulting talents, domain architects, deep subject-matter experts including AI and diversified local leadership;

Lower utilization of our resources arising from a slowdown in the economic environment, resulting in weak demand for our services from customers or a reduction in discretionary spending;

Loss of revenue due to vendor consolidation or insourcing at the customer end; and

The impact of exchange rate fluctuations on our Indian Rupee realizations.

IT Products

According to the NASSCOM Report, the overall revenue for the hardware industry is expected to be U.S.$ 19.3 billion in fiscal year 2025 with the domestic market estimated to grow by 5.9% reaching U.S.$ 18.8 billion, driven by demand from the commercial and consumer segments. The growth in the commercial segment is driven by enterprise demand for IT devices refreshment.

In our IT Products segment, we continue to experience pricing pressures due to increased competition among IT companies. Our IT Products segment is subject to seasonal fluctuations. Our IT Products revenue is driven by the capital expenditure budgets and spending patterns of our clients, who often delay or accelerate purchases in reaction to tax depreciation benefits on capital equipment and macroeconomic factors. We provide IT products as a complement to our IT services offerings rather than sell standalone IT products, and our focus continues to be on consulting and digital engagements, with a more selective approach in bidding for system integration engagements. Accordingly, our revenue, operating income and profit for our IT Products segment have varied significantly in the past and we expect that they are likely to vary in the future.

Shareholder Returns

We have always strived to enhance shareholder value for our investors. The Companys policy has been to provide regular, stable and consistent distributions of return. The Companys policy of capital allocation includes a minimum payout of 45%-50% of net income for a period of the trailing three years. Effective beginning fiscal year 2026, the capital allocation policy has been revised and with this change, the Company expects to return 70% or more of the net income cumulatively over a three-year period through a combination of dividends, special dividends and/or share buyback, subject to applicable laws and requisite approvals, if any.

Issue of Bonus Equity Shares: During the fiscal year ended March 31, 2025, we issued a stock dividend, which is commonly known as an issuance of bonus shares in India, in the proportion of one equity share for every one equity share held (including ADS holders) as of December 3, 2024, the record date fixed for this purpose. This issue of stock dividend was approved by the shareholders of the Company vide a resolution dated November 21, 2024. The Company allotted 5,233,369,207 equity shares for the bonus issuance.

Cash Dividends: The cash dividend paid for the year ended March 31, 2024 was 1 per equity share. The cash dividend paid during the year ended March 31, 2025 was an interim dividend of 6 per equity share. The Board recommended the adoption of the interim dividend of 6 per equity share as the final dividend for the year ended March 31, 2025.

Buyback of equity shares: During the year ended March 31, 2024, we concluded the buyback of 269,662,921 equity shares at a price of 445 (U.S.$ 5.34) per equity share, as approved by the Board of Directors on April 27, 2023 and by shareholders by resolution dated June 1, 2023. This has resulted in a total cash outflow of 145,173 million (U.S.$ 1,741.9 million) including a tax on the buyback of 24,783 million (U.S.$ 297.4 million) and transaction costs related to the buyback of 390 million (U.S.$ 4.7 million). As a result of the buyback, our share capital has been reduced by 539 million (U.S.$ 6.5 million).

During the year ended March 31, 2025, the Company did not conclude any buyback of equity shares.

Results of Operations

The below discussion of our results of operations omits a comparison of our results for the years ended March 31, 2023 and March 31, 2024. Such omitted discussions can be found in Item 5 of our Annual Report on Form 20-F for the year ended March 31, 2024, filed with the SEC on May 22, 2024.

Our revenues and profits for the years ended March 31, 2024 and 2025 are provided below:

	Wipro Limited and subsidiaries
	Year ended March 31,	Year-over-Year change
	2024	2025	2025-24
	( in millions, except earnings per share data)
Revenue (1)	897,943	890,916	(0.78)%
Cost of revenue	(631,497)	(617,802)	(2.17)%
Gross profit	266,446	273,114	2.50%
Selling and marketing expenses	(69,972)	(64,378)	(7.99)%
General and administrative expenses	(60,375)	(57,465)	(4.82)%
Operating income	136,099	151,271	11.15%
Profit attributable to equity holders	110,452	131,354	18.92%
As a percentage of revenue:
Selling and marketing expenses	7.79%	7.23%	(56)bps
General and administrative expenses	6.72%	6.45%	(27)bps
Gross margins	29.67%	30.66%	99bps
Operating margin	15.16%	16.98%	182bps
Earnings per share (2)
Basic	10.44	12.56
Diluted	10.41	12.52

(1) For segment reporting, we have included the impact of exchange rate fluctuations in revenue. Excluding the impact of exchange rate fluctuations, revenue, as reported in our statement of income, is 897,603 million and 890,884 million for the years ended March 31, 2024 and 2025, respectively. Please see Note 33 of the Notes to the Consolidated Financial Statements for additional details.

(2) Earnings per share for the year ended March 31, 2024 have been proportionately adjusted for the bonus issue in the ratio of 1:1 as approved by the shareholders on November 21, 2024.

Segment Information

We are organized into the following operating segments: IT Services and IT Products.

Effective April 1, 2023, we merged our India State Run Enterprises ("ISRE") segment with our APMEA SMU within the IT Services segment, as we have aligned the sales strategy for the GoI and ISRE customers to that of the larger IT Services segment.

IT Services:

Our IT Services segment is organized in four SMU - Americas 1, Americas 2, Europe and APMEA.

Americas 1 and Americas 2 are primarily organized by industry sector, while Europe and APMEA are organized by countries. Americas 1 includes the entire business of LATAM and the following industry sectors in the U.S.: communications, media and information services, software and gaming, new age technology, consumer goods, healthcare, medical devices and life sciences, and technology products and services. Americas 2 includes the entire business in Canada and the following industry sectors in the U.S.: banking and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech. Europe consists of the U.K. and Ireland, Switzerland, Germany, Northern Europe, and Southern Europe. APMEA consists of Australia and New Zealand, Southeast Asia, Japan, India, the Middle East, and Africa.

Revenue from each customer is attributed to the respective SMUs, based on the location of the customers primary buying center of such services. With respect to certain strategic global customers, revenue may be generated from multiple countries based on such customers buying centers, but the total revenue related to these strategic global customers is attributed to a single SMU based on the geographical location of key decision makers.

IT Products:

The Company is a value-added reseller of security and packaged and SaaS software for leading international brands. In certain total outsourcing contracts of the IT Services segment, the Company also delivers hardware, software products, and other related deliverables. Revenue relating to these items is reported as IT Products revenue.

Our revenue and segment results are as follows:

	Year ended March 31, 2024	Year-over-Year change
		2025	2025-24
	( in millions)
Revenue:
IT Services	893,816	888,224	(0.63)%
IT Products	4,127	2,692	(34.77)%
Reconciling Items	—	—	—
	897,943	890,916	(0.78)%
Segments results:
IT Services	144,196	151,639	5.16%
IT Products	(371)	(173)	53.37%
Reconciling Items	(7,726)	(195)	97.48%
	136,099	151,271	11.15%

Analysis of Results

Results of operations for the years ended March 31, 2025 and 2024 Revenue:

Our revenue decreased by 0.78%.

Our IT Services segment revenue decreased by 0.63%. The decline was largely due to challenges in the macroeconomic environment as a result of which clients remained cautious and continued to cut down their discretionary spending during the year ended March 31, 2025. During fiscal 2025, the revenue from Americas 1 and Americas 2 grew, while revenue from Europe and APMEA declined.

Revenue of the IT Products segment declined by 34.77%, which was primarily due to our focus on providing IT products as a complement to our IT services offerings rather than selling standalone IT products, and our adoption of a more selective approach in bidding for system integration engagements.

The table below gives our revenue by country for the years ended March 31, 2024 and 2025:

	Percentage of revenues Year ended March 31,
	2024	2025
United States of America	57%	59%
United Kingdom	12%	11%
India	3%	2%
Rest of the world	28%	28%

Cost of revenues:

In absolute terms, cost of revenues decreased by 2.17%, primarily due to a one-time employee restructuring cost of 3,838 million in fiscal year 2024. Further, our cost of revenues declined due to rigorous focus on operational improvements, including a decrease in sub-contracting costs as a percentage of IT Services revenue from 11.32% for the year ended March 31, 2024 to 11.07% for the year ended March 31, 2025, and optimization of overheads such as travel and communication expenses during fiscal year 2025. Our total employee compensation costs also decreased due to lower average headcount in fiscal year 2025 as compared to fiscal year 2024 and was partially offset by the impact of salary increases and promotions. These decreases have been partially offset by an increase in software license expenses for internal use due to new technology implementation. The following table presents our cost of revenues:

	Year ended March 31,		Year-over-Year change
Cost of revenues	2024	2025	2025-24	2025-24
	( in millions)		( in millions)
Employee compensation	459,466	452,800	(6,666)	(1.45)%
Cost of hardware and software	4,116	3,169	(947)	(23.01)%
Sub-contracting and technical fees	101,198	98,363	(2,835)	(2.80)%
Travel	9,374	7,842	(1,532)	(16.34)%
Depreciation, amortization and impairment	20,324	19,645	(679)	(3.34)%
Facility expenses	9,565	9,699	134	1.40%
Software license expense for internal use	16,827	18,183	1,356	8.06%
Communication	3,831	2,998	(833)	(21.74)%
Others	6,796	5,103	(1,693)	(24.91)%
	631,497	617,802	(13,695)	(2.17)%

As a result of the foregoing factors and the depreciation of the Indian Rupee against foreign currencies, including the U.S.$, the Euro and the GBP, our gross profit as a percentage of our total revenue increased by 99 basis points ("bps").

Selling and marketing expenses: Our selling and marketing expenses as a percentage of total revenue decreased from 7.79% for the year ended March 31, 2024 to 7.23% for the year ended March 31, 2025. In absolute terms, selling and marketing expenses decreased by 7.99% primarily due to a one-time employee restructuring cost of 1,520 million in fiscal year 2024. Our total employee compensation costs also decreased due to lower average headcount in fiscal year 2025 as compared to fiscal year 2024 and was partially offset by the impact of salary increases and promotions. Further, total amortization of intangibles decreased in fiscal year 2025 primarily due to certain customer-related intangible assets with a useful life that ended in fiscal year 2024. This was partially offset by an increase in other expenses due to a higher one-time reversal of contingent consideration during fiscal year 2024. The following tables present our selling and marketing expenses:

Selling and marketing expenses	Year ended March 31,		Year-over-Year change
	2024	2025	2025-24	2025-24
	( in millions)		( in millions)
Employee compensation	51,224	47,788	(3,436)	(6.71)%
Travel	1,705	1,899	194	11.38%
Depreciation, amortization and impairment	11,981	8,285	(3,696)	(30.85)%
Facility expenses	672	961	289	43.01%
Software license expense for internal use	22	27	5	22.73%
Communication	346	385	39	11.27%
Marketing and brand building	3,555	3,591	36	1.01%
Others	467	1,442	975	208.78%
	69,972	64,378	(5,594)	(7.99)%

General and administrative expenses:

Our general and administrative expenses as a percentage of total revenue decreased from 6.72% for the year ended March 31, 2024 to 6.45% for the year ended March 31, 2025. In absolute terms, general and administrative expenses decreased by 4.82%, primarily due to a one-time employee restructuring cost of 1,456 million in fiscal year 2024 and onetime costs related to the outgoing CEO of 921 million in fiscal year 2024. Further, the receipt of insurance claims of 1,805 million in fiscal year 2025 led to a decrease in other expenses. These decreases have been partially offset by an increase in facility expenses and staff recruitment expenses and lower gain from sale of property, plant and equipment during the year ended March 31, 2025. The following tables present our general and administrative expenses:

General and administrative expenses	Year ended March 31,		Year-over-Year change
	2024	2025	2025-24	2025-24
	( in millions)		( in millions)
Employee compensation	38,611	32,889	(5,722)	(14.82)%
Travel	4,023	4,354	331	8.23%
Facility expenses	4,319	5,406	1,087	25.17%
Software license expense for internal use	1,529	1,128	(401)	(26.23)%
Legal and professional fees	6,032	6,523	491	8.14%
Staff recruitment expenses	2,177	3,799	1,622	74.51%
Lifetime expected credit loss/ (write-back)	640	324	(316)	(49.38)%
(Gain)/loss on sale of property, plant and equipment, net	(2,029)	(553)	1,476	(72.75)%
Others	5,073	3,595	(1,478)	(29.13)%
	60,375	57,465	(2,910)	(4.82)%

Operating income:

As a result of the foregoing factors, our operating income increased by 11.15%, from 136,099 million for the year ended March 31, 2024 to 151,271 million for the year ended March 31, 2025, and our results from operating activities as a percentage of revenue (operating margin) increased by 182 bps from 15.16% to 16.98%.

Finance expenses:

Our finance expenses increased from 12,552 million for the year ended March 31, 2024 to 14,770 million for the year ended March 31, 2025. The increase is primarily due to higher loans and borrowings and tax liabilities during the year ended March 31, 2025 and a higher interest charge on liability for written put option and lease liability of 497 million and 259 million, respectively.

Finance and other income:

Our finance and other income increased from 23,896 million for the year ended March 31, 2024 to 38,202 million for the year ended March 31, 2025. The increase is primarily due to an increase in interest income of 7,732 million, an increase in net gain from investments of 4,278 million and an increase in dividend income of 2,296 million during the year ended March 31, 2025 compared to the year ended March 31, 2024.

Income taxes:

Our income taxes increased by 6,688 million from 36,089 million for the year ended March 31, 2024 to 42,777 million for the year ended March 31, 2025 due to higher profits before tax during the fiscal year 2025. However, our effective tax rate decreased marginally from 24.52% for the year ended March 31, 2024 to 24.45% for the year ended March 31, 2025. Please refer to Note 21 of the Notes to the Consolidated Financial Statements for further information.

Profit attributable to non-controlling interest:

Our profit attributable to non-controlling interest increased from 669 million for the year ended March 31, 2024 to 826 million for the year ended March 31, 2025.

Profit attributable to equity holders:

As a result of the foregoing factors, our profit attributable to equity holders increased by 20,902 million or 18.92%, from 110,452 million for the year ended March 31, 2024 to 131,354 million for the year ended March 31, 2025.

Analysis of Revenue and Results by Segment

IT Services

Our IT Services segment provides a range of IT and IT-enabled services which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, development, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure services, cybersecurity, business process services, cloud, mobility and analytics services, R&D and hardware and software design. Through AI-powered, consulting-led solutions, we help our clients transform their businesses to drive better efficiencies and generate new growth opportunities.

Effective April 1, 2023, we reorganized our segments by merging the ISRE segment with our APMEA SMU within the IT Services segment.

Information by SMUs for the IT Services segment for the years ended March 31, 2024 and 2025 is as follows:

Year-over-Year

	Year ended March 31,		change 2025-24
	2024	2025
	( in millions)
Revenue:
IT Services Strategic Market Units
Americas 1	268,230	281,824	5.07%
Americas 2	269,482	271,972	0.92%
Europe	253,927	240,077	(5.45)%
APMEA	102,177	94,351	(7.66)%
	893,816	888,224	(0.63)%
Segments Result:
IT Services Strategic Market Units
Americas 1	59,364	58,186	(1.98)%
Americas 2	59,163	61,326	3.66%
Europe	33,354	29,434	(11.75)%
APMEA	12,619	12,850	1.83%
Unallocated (1)	(20,304)	(10,157)	(49.98)%
	144,196	151,639	5.16%

(1) Effective April 1, 2023, amortization and impairment of intangibles assets arising from business combination and change in fair value of contingent consideration due to change in estimates is included under "Unallocated" within IT Services segment.

Please see Note 33 of the Notes to the Consolidated Financial Statements for additional details regarding our operating segments.

Our IT Services segment accounted for 99.5% and 99.7% of our total revenue for the years ended March 31, 2024 and 2025, respectively and 105.9% and 100.2% of our operating income for the years ended March 31, 2024 and 2025, respectively.

Operating results of the IT Services segment are as follows:

Year-over-Year

	Year ended March 31,		change 2025-24
	2024	2025
	( in millions)
Revenue (1)	893,816	888,224	(0.63)%
Cost of revenue	(623,205)	(614,754)	(1.36)%
Gross profit	270,611	273,470	1.06%
Selling and marketing expenses	(68,352)	(64,305)	(5.92)%
General and administrative expenses	(58,063)	(57,526)	(0.92)%
Segment results	144,196	151,639	5.16%
As a percentage of revenue:
Selling and marketing expenses	7.65%	7.24%	(41)bps
General and administrative expenses	6.50%	6.48%	(2)bps
Gross margins	30.28%	30.79%	51bps
Segment results	16.13%	17.07%	94bps

(1) For the purpose of segment reporting, we have included the impact of exchange rate fluctuations gains/(losses), net amounting to 340 million and 32 million for the years ended March 31, 2024 and 2025, respectively, in revenue. Please see Note 33 of the Notes to the Consolidated Financial Statements for additional details.

Our revenue and segment results by SMUs within the IT Services segment, expressed in terms of percentages, are provided below:

	Year ended March 31,
	2024		2025
	Percentage of revenues	Percentage of Segment results	Percentage of revenues	Percentage of Segment results
Strategic Market Units
Americas 1	30.0%	41.2%	31.7%	38.4%
Americas 2	30.2%	41.0%	30.6%	40.4%
Europe	28.4%	23.1%	27.1%	19.4%
APMEA	11.4%	8.8%	10.6%	8.5%
Unallocated	NA	(14.1)%	NA	(6.7)%

Our IT Services segment revenue by sectors, expressed in terms of percentages, is provided below:

	Year ended March 31,
	2024	2025
Sector
Banking, Financial Services and Insurance	33.4%	34.3%
Consumer	18.8%	19.1%
Health (1)	13.2%	14.1%
Energy, Manufacturing and Resources	18.7%	17.2%
Technology and Communications (1)	15.9%	15.3%

(1) Effective October 1, 2024, the Company has reorganized its sectors by merging "Technology" and "Communications" into "Technology and Communications" sector, and by merging "Energy, Natural Resources and Utilities" and "Manufacturing" into "Energy, Manufacturing and Resources" sector. Comparative period revenue by sectors information has been restated to give effect to this change.

IT Services results of operations for the years ended March 31, 2025 and 2024

The IT Services segment revenue decreased marginally by 0.63% for the year ended March 31, 2025 compared to our revenue for the year ended March 31, 2024. The decline was largely due to challenges in the macroeconomic environment as a result of which clients remained cautious and continued to cut down their discretionary spending during the year ended March 31, 2025. During fiscal 2025, the revenue from Americas 1 and Americas 2 grew, while revenue from Europe and APMEA declined.

Our gross profit as a percentage of our revenue from our IT Services segment increased by 51 bps, primarily due to rigorous focus on operational improvements, including a decrease in sub-contracting costs as a percentage of IT Services revenue from 11.32% for the year ended March 31, 2024 to 11.07% for the year ended March 31, 2025. Optimization of overheads, such as travel expenses of 1,533 million and communication expenses of 833 million, also contributed to improvement in gross profit. Further, our total employee compensation costs decreased by 3,023 million primarily due to lower average headcount in fiscal year 2025 as compared to fiscal year 2024 and was partially offset by the impact of salary increases and promotions. The depreciation of the Indian Rupee against foreign currencies, including the U.S.$, the Euro and the GBP, also contributed to improvement in gross margin. These cost optimizations have been partially offset by an increase in software license expenses for internal use of 1,389 million due to new technology implementation.

Selling and marketing expenses as a percentage of revenue from our IT Services segment decreased from 7.65% for the year ended March 31, 2024 to 7.24% for the year ended March 31, 2025. In absolute terms, selling and marketing expenses decreased by 4,047 million, primarily due to a decrease in amortization of intangibles of 3,695 million due to certain customer-related intangible assets with a useful life that ended in fiscal year 2024. Our total employee compensation costs decreased by 1,887 million due to lower average headcount in fiscal year 2025 as compared to fiscal year 2024 and was partially offset by the impact of salary increases and promotions. These declines were partially offset by an increase in other expenses due to a higher one-time reversal of contingent consideration of 1,131 million during fiscal year 2024.

General and administrative expenses as a percentage of revenue from our IT Services segment decreased marginally from 6.50% for the year ended March 31, 2024 to 6.48% for the year ended March 31, 2025. In absolute terms, general and administrative expenses decreased by 537 million. Our total employee compensation costs decreased by 3,314 million due to lower average headcount in fiscal year 2025 as compared to fiscal year 2024 and was partially offset by the impact of salary increases and promotions. Further, an insurance claim receipt of 1,805 million in fiscal year 2025 resulted in a decrease in other expenses. These decreases have been partially offset by an increase in facility expenses of 1,094 million, staff recruitment expenses of 1,287 million and lower gain of 1,482 million from sale of property, plant and equipment during the year ended March 31, 2025.

As a result of the above, segment results as a percentage of our revenue from our IT Services segment increased by 94 bps, from 16.13% to 17.07%. In absolute terms, the segment results of our IT Services segment increased by 5.16%.

IT Products

While we focus on being a strategic provider of IT services, we provide IT products as a complement to our IT services offerings. Our range of third-party IT Products is comprised of Enterprise Platforms, Networking Solutions, Software Products, Data Storage, Contact Center Infrastructure, Enterprise Security, IT Optimization Technologies, Video Solutions and End-User Computing solutions. Revenue from the hardware products and software licenses sold is recorded under the IT Products segment. We have a diverse range of clients across all major industries, primarily in the India and Middle East markets.

Our IT Products segment accounted for 0.5% and 0.3% of our revenue for the years ended March 31, 2024 and 2025, respectively, and (0.3)% and (0.1)% of our operating income for the years ended March 31, 2024 and 2025, respectively.

Operating results of the IT Products segment are as follows:

	Year ended March 31,		Year-over-Year change
	2024	2025	2025-24
	( in millions)
Revenue	4,127	2,692	(34.77)%
Cost of revenue	(4,442)	(2,833)	(36.22)%
Gross profit/(loss)	(315)	(141)	55.24%
Selling and marketing expenses	(89)	(59)	(33.71)%
General and administrative (expenses)/credit	33	27	(18.18)%
Segment results	(371)	(173)	53.37%
As a percentage of revenue:
Selling and marketing expenses	2.16%	2.19%	3bps
General and administrative expenses/(credit)	(0.80)%	(1.00)%	20bps
Gross margins	(7.63)%	(5.24)%	239bps
Segment results	(8.99)%	(6.43)%	256bps

IT Products results of operations for the years ended March 31, 2025 and 2024

Our revenue from the IT Products segment decreased by 34.77% for the year ended March 31, 2025 compared to our revenue for the year ended March 31, 2024. The decrease was primarily due to our focus on providing IT products as a complement to our IT services offerings rather than selling standalone IT products, and our adoption of a more selective approach in bidding for system integration engagements.

Our gross loss as a percentage of our IT Products segment revenue decreased by 239 bps for the year ended March 31, 2025 compared to our gross loss for the year ended March 31, 2024. In absolute terms, gross loss decreased by 174 million primarily due to certain low margin projects executed during the year ended March 31, 2024.

Selling and marketing expenses as a percentage of revenue from our IT Products segment increased marginally from 2.16% for the year ended March 31, 2024 to 2.19% for the year ended March 31, 2025. In absolute terms, selling and marketing expenses decreased by 30 million.

General and administrative expenses/(credit) as a percentage of revenue from our IT Products segment increased from (0.80)% for the year ended March 31, 2024 to (1.00)% for the year ended March 31, 2025. In absolute terms, credit in general and administrative expenses decreased marginally by 6 million primarily due to lower write-back in lifetime expected credit loss on trade receivables during the year ended March 31, 2025.

As a result of the above, segment loss as a percentage of our revenue from our IT Products segment decreased by 256 bps, from (8.99)% to (6.43)%. In absolute terms, the segment loss of our IT Products segment decreased by 198 million.

Reconciling Items

"Reconciling Items" for the year ended March 31, 2025 includes 202 million towards certain corporate costs. "Reconciling Items" for the year ended March 31, 2024 includes restructuring costs of 6,814 million consisting of cash expenditures for employee severance-related costs and 921 million towards employee costs related to the outgoing CEO.

Acquisitions

Refer to Item 4 of this Annual Report on Form 20-F and Note 7 of the Notes to the Consolidated Financial Statements for a description of the acquisitions during the reported period.

Divestitures

There were no divestitures during the years ended March 31, 2024 and 2025.

Foreign exchange gains, net

Our net foreign exchange gains for the years ended March 31, 2024 and 2025 were 340 million and 32 million, respectively.

Our foreign exchange gains, net, comprise of:

exchange differences arising from the translation or settlement of transactions in foreign currency, except for exchange differences on debt denominated in foreign currency (which are reported within finance expenses and finance and other income); and

the changes in fair value for derivatives not designated as hedging derivatives and ineffective portions of the hedging instruments.

For forward foreign exchange contracts which are designated and effective as cash flow hedges, the marked to market gains and losses are deferred and reported as a component of other comprehensive income in shareholders equity and subsequently recorded in the income statement when the hedged transactions occur, along with the hedged items. Refer to Note 19 of the Notes to the Consolidated Financial Statements for additional information.

Although our functional currency is the Indian Rupee, we transact a significant portion of our business in foreign currencies, including the U.S. Dollar, the Pound Sterling, the Euro, the Canadian Dollar and the Australian Dollar. The exchange rate between the Indian Rupee and these currencies has changed substantially in recent years and may fluctuate substantially in the future. Consequently, the results of our operations are affected as the Indian Rupee fluctuates against these currencies. Our exchange rate risk primarily arises from our foreign currency revenues, cash balances, payables, lease liabilities and debt. We enter into derivative instruments to primarily hedge our forecasted cash flows denominated in certain foreign currencies, foreign currency debt and net investment in overseas operations. Please refer to Notes 14 and 19 of the Notes to the Consolidated Financial Statements for additional details on our foreign currency exposures.

The following table sets forth the currencies in which our revenues for fiscal year 2024 and fiscal year 2025 were denominated:

	Year ended March 31,
	2024	2025
	% of Revenues
U.S. Dollar (U.S.$)	60%	62%
Pound Sterling (GBP)	11%	10%
Euro (EUR)	10%	10%
Indian Rupee (INR)	5%	4%
Australian Dollar (AUD)	4%	4%
Canadian Dollar (CAD)	3%	3%
Others	7%	7%

The following table sets forth information on the foreign exchange rates in Indian Rupees per U.S. Dollar, Pound Sterling, Euro, Australian Dollar and Canadian Dollar for fiscal year 2024 and fiscal year 2025:

Average exchange rate during the year:	Year ended March 31,		Appreciation / (Depreciation) of INR in percentage
	2024	2025
U.S. Dollar (U.S.$)	82.78	84.54	(2.13)%
Pound Sterling (GBP)	103.98	107.81	(3.68)%
Euro (EUR)	89.82	90.72	(1.00)%
Australian Dollar (AUD)	54.49	55.15	(1.21)%
Canadian Dollar (CAD)	61.39	60.79	0.98%

 

Exchange rate at the beginning of the year:	Year ended March 31,
	2024	2025
U.S. Dollar (U.S.$)	82.17	83.40
Pound Sterling (GBP)	101.81	105.20
Euro (EUR)	89.38	89.96
Australian Dollar (AUD)	54.97	54.31
Canadian Dollar (CAD)	60.66	61.54
Exchange rate at the end of the year:
U.S. Dollar (U.S.$)	83.40	85.46
Pound Sterling (GBP)	105.20	110.46
Euro (EUR)	89.96	92.05
Australian Dollar (AUD)	54.31	53.78
Canadian Dollar (CAD)	61.54	59.66
Appreciation / (Depreciation) of INR in percentage
U.S. Dollar (U.S.$)	(1.49)%	(2.47)%
Pound Sterling (GBP)	(3.32)%	(5.00)%
Euro (EUR)	(0.65)%	(2.32)%
Australian Dollar (AUD)	1.20%	0.98%
Canadian Dollar (CAD)	(1.45)%	3.05%

Income taxes

Our profits for the period earned from providing services at client premises outside India may be subject to tax in the country where we perform the work. Most of our taxes paid in countries other than India can be applied as a credit against our Indian tax liability to the extent that the same income is subject to taxation in India.

Currently, we benefit from certain tax incentives under Indian tax laws. These tax incentives include a tax holiday from payment of Indian corporate income taxes for our businesses operating from specially designated SEZs. Units in designated SEZs which began providing services on or after April 1, 2005 are eligible for a deduction of 100% of profits or gains derived from the export of services for the first five years from commencement of provision of services and 50% of such profits or gains for a further five years. A 50% tax deduction is available for a further five years, subject to the SEZ unit meeting certain defined conditions. Profits from certain other undertakings are also eligible for preferential tax treatment. New SEZ units set up on or after April 1, 2021 are not eligible for the aforesaid deduction. We are also eligible for exemptions from certain other taxes, including customs duties in the Software Technology and Hardware Technology Parks.

Due to these tax incentives, a substantial portion of our pre-tax income has not been subject to a significant tax in India in recent years. When our tax holiday and income tax deduction/exemptions expire or terminate, our tax expense will increase. The expiration period of the tax holiday for each unit within a SEZ is determined based on the number of years since commencement of production by that unit for a maximum of 15 years. The tax holiday period currently available to the Company expires in various years through fiscal year 2034-35. The impact of tax holidays has resulted in a decrease of current tax expense of 14,308 million and 11,798 million for the years ended March 31, 2024 and 2025, respectively, compared to the effective tax amounts that we estimate we would have been required to pay if these incentives had not been available. The per share effect of these tax incentives for the years ended March 31, 2024 and 2025 is 1.35 and 1.13, respectively. Previous years per equity share effect have been proportionately adjusted for the bonus issue in the ratio of 1:1. Please see Note 22 of the Notes to the Consolidated Financial Statements for additional details regarding the bonus issue.

In September 2019, the GoI amended the Income-tax Act by enacting The Taxation Laws (Amendment) Act, 2019, and has provided an option for companies to pay tax at a lower rate of 22% (plus surcharge and cess) by foregoing all the deductions available under chapter VI-A and other profit linked deductions under the Income-tax Act. This option, if exercised, is irrevocable and the corresponding MAT credit available will lapse. We have evaluated the option and have decided to continue under the existing regime and not to avail the lower tax rate. In the future, if we opt for the lower tax rate, it may lead to an increase in tax outflow and the MAT credit available to us will lapse.

The Companys assessments in India are completed for the years up to March 31, 2019 and for the year ended March 31, 2021. The Company has received demands on multiple tax issues. These claims are primarily arising out of denial of deduction under section 10A of the Income Tax Act, 1961 in respect of profit earned by the Companys undertaking in Software Technology Park in Bengaluru. The appeals filed against said demand before the Appellate authorities have been allowed in favor of the Company by the second appellate authority for the years up to March 31, 2008, which either has been or may be contested by the Income tax authorities before the Honble Supreme Court of India. Other claims relate to disallowance of tax benefits on profits earned from Software Technology Park and SEZ units, capitalization of R&D expenses, transfer pricing adjustments on intercompany and inter-unit transactions, and other issues.

Income tax claims against the Company amounting to 95,520 million and 99,431 million are not acknowledged as debt as at March 31, 2024 and 2025, respectively. These matters are pending before various Appellate Authorities and management expects its position will likely be upheld on ultimate resolution and will not have a material adverse effect on the Companys financial position and results of operations.

Although we currently believe we will ultimately prevail in our appeals, the result of such appeals, and any subsequent appeals, cannot be predicted with certainty. Should we fail to prevail in our appeal, or any subsequent appeals, in any reporting period, the operating results of such reporting period could be adversely affected materially.

Our sustainability vision and key highlights for the fiscal year ended March 31, 2025:

At Wipro, our commitment to corporate responsibility is founded on core values, mindsets, and habits. Our responsible business framework incorporates both internal and external perspectives, promoting comprehensive, boundary-less engagement with customers, employees, investors, suppliers, and communities.

We operationalize our vision through the principle of ‘double materiality:

(i) our business impact on our stakeholders and the environment and

(ii) the converse impact of environmental change and stakeholders on our business.

While the latter is framed in terms of risks and opportunities for the Company, our business impact on the environment and stakeholders is based on fiduciary principles of trust, stewardship, and social responsibility.

Below are the key features of our sustainability initiatives:

a. Environment

Our sustainability program goes back more than 15 years and comprises an established yet dynamically evolving set of initiatives that address our entire value chain on four key dimensions: energy and climate change, water, waste, and biodiversity. Our environment goals are to:

i. Contribute effectively to addressing climate change:

We are committed to achieving net-zero greenhouse gas emissions by 2040, which is in line with the Paris Agreements objective of limiting the global temperature increase to 1.5?C. We have set an intermediate target of a 59% reduction in absolute emission levels for Scopes 1 and 2 by 2030 (baseline year 2017) and a 55% reduction in Scope 3 (baseline year 2020).

Note: Scope 1 refers to direct emissions from sources owned or controlled by us; Scope 2 refers to indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by us; and Scope 3 covers all other indirect emissions that occur in our value chain. These targets are based on the globally accepted SBTi and reflect significant decarbonization and operational changes we will be implementing. The primary levers of our decarbonization strategy are: a. improving the energy efficiency of our facilities for sustained reduction in energy consumption; b. increasing the use of renewable energy in our owned facilities in India through private power purchase agreements and captive solar power; and c. combining behavioral, technological, and collaborative approaches that help reduce the carbon footprint of air travel, commuting and purchased goods and services.

As of March 31, 2025, we have achieved an 84% reduction in Scopes 1 and 2 and expect to achieve net zero well ahead of the target year of 2040. Our progress has been powered by our investments in best-in-class sustainable building design and infrastructure practices coupled with the continued expansion of our renewable energy footprint which currently stands at 83% for all our owned facilities. We plan to vigorously scale this up in the next few years through appropriate investments. Our plan is to reach 100% renewable energy use at our Indian facilities before 2030. Simultaneously, we expect to achieve proportionate reductions in the carbon footprint associated with our business travel, employee commuting and supply chain.

ii. Responsible stewardship of scarce water resources:

We are committed to responsibly managing the use of scarce water resources by

(a) improving our per capita freshwater efficiency by 60% from 150 liters per capita per day ("Lpcd") in 2023 to 60 Lpcd in 2030,

(b) increasing the proportion of recycled water use to 60% by 2030 and

(c) contributing to a deeper understanding of the systemic challenges of urban water in the major cities in which we operate.

Our water consumption is primarily on account of drinking water, air conditioning, cooking and washing in canteens, toilets and landscape gardening. Our approach to reduce dependence on freshwater has been through increased wastewater recycling, minimizing pipe losses and expanding rainwater harvesting.

Our freshwater efficiency for the fiscal year ended March 31, 2025 stood at 110 Lpcd, representing a 26% improvement in the last two years. Our freshwater efficiency was in part due to recycling and reusing 31% of treated wastewater.

iii. Minimize waste generation from operations and its impact on communities:

We are committed to ensuring 100% of organic waste is recycled and to ensure that less than 2% goes to landfills (excluding construction and demolition waste) by 2025. During the year ended March 31, 2025, we sent around 1% of our waste to landfills. We continue to maintain the highest standards of solid waste management in all the four categories: food and organic, inorganic, hazardous materials and construction debris. We ensure reuse and certify recycling for between 98%-100% of all our waste.

iv. Enhance the biodiversity quotient of owned campuses: We are committed to incorporating biodiversity as a key element in the design and maintenance of all our owned campuses. In addition to our flagship biodiversity campuses in Bengaluru and Pune, all our new campuses have incorporated biodiversity principles. In Hyderabad, around eight acres has been developed into a mini-forest, housing nearly 128 different species, with plans to expand it further. These biodiversity areas have become levers of employee engagement, with multiple bio-blitz activities being planned across our key campuses.

b. Workplace and Communities

We are committed to enhancing workplace diversity and fostering a culture of inclusion, continuous learning, open communication, holistic well-being – focusing on mind, body and community, and ethical conduct. Our social and community initiatives led by Wipro Cares span a wide thematic spread in the domains of education, primary health care and urban ecology and also include employee volunteering as an integral part. Key highlights against our social goals are articulated below:

i. Building and promoting a culture of inclusion by nurturing diversity and shaping behaviors through

(a) increased diversity overall and at the leadership level and

(b) the Spirit of Wipro, where our values – shaped over 80 years – are reflected in the Five Habits, leadership mindsets and code of business conduct.

As of March 31, 2025, our workforce included (i) 37.1% women;

(ii) 18.8% women in senior leadership roles;

iii) 25% women across all management positions;

(iv) 2,080 employees with disabilities; and

(v) 1,808 employees from the LGBTQ+ community.

ii. Empowering employees through a culture of continuous learning opportunities through open communication by

(a) providing opportunities to employees to reskill themselves to meet open client demands; and

(b) delivering leadership skills program at every stage of the career life cycle.

Skilling hours as a metric reflects our commitment to developing more skilled and ready talent. This initiative is pivotal in maximizing internal demand fulfilment and fostering a culture of continuous learning within our organization.

We clocked 83.4 skilling hours per associate during the fiscal year ended March 31, 2025. This is a significant leap from when we introduced skilling hours as a KPI in the fiscal year ended March 31, 2024, to encourage proactive skilling efforts. We have also made strides in setting up 113 Account Academies across GBLs, through which we have skilled over 149,000 associates. Additionally, our Practice Academies, such as those focused on the cloud, AI, and data engineering, are dedicated to building emerging skills necessary for future roles. Its encouraging to see that 84% of employees across various bands have demonstrated awareness of AI technologies.

Our journey began with 12.1 hours per associate in the first quarter of fiscal 2025, and we successfully reached 83.4 hours per associate by the fourth quarter of fiscal 2025. This remarkable progress is a testament to our collective effort and dedication.

iii. Prioritizing health, well-being and safety at all times by adopting a holistic life-cycle approach that emphasizes employee safety, physical health and mental well-being.

iv. Contributing in a deep, meaningful manner to a more equitable, humane and sustainable society by working on the dimensions of education, ecology and primary health care. We also support proximate communities in times of extreme crisis. We choose to work on societal issues that are fundamental and foundational enablers of essential well-being in an individuals life.

Our community initiatives are spread across 20 countries. During the fiscal year ended March 31, 2025, we supported nearly 181 partners in the domains of education, primary healthcare, digital skilling and urban ecology with an effective outreach and impact on 2.55 million people, a significant proportion of which was from vulnerable populations.

Our educational initiatives begin with early childhood education and target multiple key aspects that facilitate improvements in both quality and equity within schools. We additionally emphasize STEM and computer science education, digital skills training at the collegiate level, and sustainability education as an overarching, integrative effort. Our operations extend across 28 states and Union Territories in India, where we collaborate with a network of 157 partners to generate positive outcomes for 526,188 students, including over 68,000 children with disabilities.

TalentNext, our India-wide program covered more than 75,600 students in the year ended March 31, 2025, including a collaboration with industry body Nasscom called the ‘Future Skills Program. We have made a cumulative impact on approximately 318,031 students since fiscal year 2017.

We have continued to actively strengthen our primary health care program for vulnerable urban communities. Our strategy endeavors to strengthen the public health system in improving accessibility of healthcare services, building the capacity of local communities to manage their healthcare needs, and training accredited public health workers to address the unique needs of these communities. Currently we support a portfolio of 23 healthcare projects in the major cities we operate in; these collectively work in promoting the well-being of women, children and adolescents with special focus on reproductive, maternal, newborn, child and adolescent health. During the year, our projects achieved a total outreach to 2.06 million people, including nearly 310,000 women in reproductive age groups who were beneficiaries of the gender and maternal care programs we support.

A key aspect of employee well-being is the opportunity to volunteer with communities. During the fiscal year ended March 31, 2025, 57,916 employees from 33 employee chapters in India and across the world engaged actively either through monetary contribution or volunteering. We plan to significantly expand the scale and scope of employee volunteering in the next three years. Outside India we supported approximately 32 projects in 19 countries with positive impacts on approximately 12,673 people. 15,814 Wipro employees (in India and outside India) contributed approximately 35,076 volunteering hours.

v. Engagement with suppliers by collaboratively developing and enhancing a sustainable and responsible supply chain by proactively expanding the diversity of our supplier base with an active focus on women-owned enterprises and micro, small and medium enterprises. Our commitment to ensure responsible supplier conduct with respect to environmental and human rights in the supply chain led us to launch WISE – the Wipro Initiative for Supplier Engagement. Through WISE, we are working with our strategic small and medium suppliers on various aspects related to ESG. In addition, our transparent supplier governance process guarantees fair practices and zero tolerance for corruption.

c. Governance

We recognize the critical salience of good governance, ethical business conduct and transparent disclosures in ensuring the effectiveness of all our sustainability initiatives. We keep track and closely monitor the number of employees who have completed the mandatory training such as COBC and cybersecurity.

For more information on our ESG initiatives, please visit our website at www.wipro.com.

Liquidity and Capital Resources

The Companys cash flow from its operating, investing and financing activities, as reflected in the Consolidated Statement of Cash Flows, is summarized in the table below:

	Year ended March 31,		Year-over-Year change
	2024	2025	2025-24
	( in millions)
Net cash generated from /(used in):
Operating activities	176,216	169,426	(6,790)
Investing activities	11,680	(80,730)	(92,410)
Financing activities	(182,567)	(63,963)	118,604
Net change in cash and cash equivalents	5,329	24,733	19,404
Effect of exchange rate changes on cash and cash equivalents	(239)	290	529

As of March 31, 2025, we had cash and cash equivalent and short-term investments of 533,448 million. Cash and cash equivalent and short-term investments, net of loans and borrowings, were 371,631 million.

In addition, we have unutilized credit lines in various currencies aggregating to 43,256 million as of March 31, 2025. To utilize these lines of credit, we require the consent of the lender and compliance with certain financial covenants. We have historically financed our working capital and capital expenditures through our operating cash flows and through bank debt, as required.

Cash generated from operating activities for the year ended March 31, 2025 decreased by 6,790 million while profit for the year increased by 21,059 million during the same period. The decrease in cash generated from operating activities is primarily due to increased working capital requirements, contributed by net increases in accounts receivables, unbilled receivables and contract assets, and other assets. Further, income taxes paid, net of refund increased by 10,815 million during the year ended March 31, 2025.

Cash generated from operating activities for the year ended March 31, 2024 increased by 45,615 million while profit for the year decreased by 2,544 million during the same period. The increase in cash generated from operating activities is primarily due to decreased working capital requirements, contributed by net decrease in accounts receivables, unbilled receivables and contract assets, other assets and contract liabilities. Further, income taxes paid, net of refund decreased by 14,858 million during the year ended March 31, 2024.

Cash used in investing activities for the year ended March 31, 2025 was 80,730 million. Cash is primarily used towards purchases of investments (net of sale) amounting to 95,062 million and purchases of property, plant and equipment amounting to 14,737 million, which was primarily driven by the growth strategy of the Company. Further, there was a cash outflow of 964 million towards the business acquisition consummated during the year ended March 31, 2025. These were partially offset by an inflow of 28,511 million from interest and dividends received and an inflow of 1,822 million from sale of property, plant and equipment during the year ended March 31, 2025.

Cash generated from investing activities for the year ended March 31, 2024 was 11,680 million. Cash is primarily generated from interest received amounting to 20,111 million, sale of property, plant and equipment amounting to 4,022 million and sale of investments (net of purchase) amounting to 3,529 million. We also purchased property, plant and equipment amounting to 10,510 million, which was primarily driven by the growth strategy of the Company. This was partially offset by an outflow of 5,291 million for business acquisitions consummated during the year ended March 31, 2024.

Cash used in financing activities for the year ended March 31, 2025 was 63,963 million. This is primarily on account of outflow for payment of dividends amounting to 62,750 million, payment of lease liabilities of 10,474 million and payment of interest and finance expenses of 8,689 million. These were partially offset by an inflow of 17,923 million from loans and borrowings during the year ended March 31, 2025.

Cash used in financing activities for the year ended March 31, 2024 was 182,567 million. This is primarily on account of outflow for an equity share buyback (including a tax on the buyback and transactions costs related to the buyback) amounting to 145,173 million, payment of dividends of 5,218 million, payment of lease liabilities of 10,060 million, interest and finance expenses of 10,456 million and net outflow on repayment of loans and borrowings of 10,057 million.

We maintain a borrowing level that we have established through consideration of a number of factors including cash flow expectations, cash required for operations and investment plans. We continually monitor our funding requirements, and strategies are executed to maintain sufficient flexibility to access global funding sources, as needed. Please refer to Note 14 of our Notes to the Consolidated Financial Statements for additional details on our borrowings.

As of March 31, 2025, we had contractual commitments of 8,719 million (U.S.$ 102.06 million) related to capital expenditures on the construction or expansion of software development facilities and 40,264 million (U.S.$ 471.31 million) related to other purchase obligations. Plans to construct or expand our software development facilities are determined by our business requirements.

As discussed above, cash generated from operations is our primary source of liquidity. We believe that our cash and cash equivalents along with cash generated from operations will be sufficient to meet our working capital requirements as well as repayment obligations with respect to debt and borrowings. Our choices of sources of funding will be driven with the objective of maintaining an optimal capital structure.

We will rely on funds generated from operations and external debt to fund potential acquisitions. We expect that our cash and cash equivalents, investments in short-term mutual funds and the cash flows expected to be generated from our operations in the future will generally be sufficient to fund our growth aspirations, as applicable.

In the normal course of business, we transfer certain accounts receivables, unbilled receivables and net investments in finance leases (financial assets) to banks on a non-recourse basis. The incremental impact of such transactions on our cash flow and liquidity for the years ended March 31, 2024 and 2025 is not material. Please refer to Note 19 of our Notes to Consolidated Financial Statements.

Our liquidity and capital requirements are affected by many factors, some of which are based on the normal ongoing operations of our businesses and some of which arise from uncertainties related to global economies and the markets that we target for our services. We cannot be certain that additional financing, if needed, will be available on favorable terms, if at all.

As of March 31, 2024 and 2025, our cash and cash equivalents were primarily held in U.S. Dollars, Indian Rupees, Canadian Dollars, Euros, Australian Dollars, Saudi Riyals, Pound Sterling and Brazilian Real. Please refer to "Financial risk management" under Note 19 of our Notes to the Consolidated Financial Statements for more details on our treasury activities.

The table of future payments due under known contractual commitments as of March 31, 2025, aggregated by type of contractual obligation, is given below:

Particulars	Total contractual payment	2025-26	Payments due in 2026-30	2030-31 onwards
	( in millions)
Loans, borrowings and bank overdrafts (1) (2)	164,460	99,884	64,576	—
Lease Liabilities (3)	37,909	9,618	18,850	9,441
Contingent consideration (4)	2,401	580	1,821	—
Liability on written put options to non-controlling interests (4)	6,505	—	6,505	—
Other liabilities	4,871	3,321	1,550	—
Capital commitments (5)	8,719	4,536	1,633	2,550
Purchase obligations	40,264	18,635	19,617	2,012

(1) For further information on currency and interest rate structures, refer to Note 14 of the Notes to Consolidated Financial Statements.

(2) Includes future cash outflow towards estimated interest on borrowings. Interest payments for long-term fixed rate debts have been calculated based on applicable rates and payment dates. Interest payments on floating rate debt have been calculated based on the payment dates and implied forward interest rates as of March 31, 2025 for each relevant debt instrument.

(3) Includes future cash outflow toward deferred interest on lease liabilities and certain committed leases which have not yet commenced. For further information on lease liabilities, refer to Note 5 and Note 19 in the Notes to Consolidated Financial Statements.

(4) The fair value of the contingent consideration and liability on written put options to non-controlling interests is estimated by applying the valuation techniques which include inputs relating to risk-adjusted revenue and operating profit forecast. The amount in the table above is the undiscounted fair value.

(5) Represents contractual commitments related to capital expenditures on construction or expansion of software development facilities.

Other non-current liabilities and non-current tax liabilities in the statement of financial position include 17,119 million in respect of employee benefit obligations and certain statutory and other liabilities and 42,024 million towards uncertain tax positions, respectively. For these amounts, the timing of repayment/settlement cannot be reliably estimated or determined at present and accordingly these amounts have not been disclosed in the table above.

Off-Balance Sheet Arrangements

Performance and financial guarantees are provided by banks on behalf of the Company to the Indian government, customers and certain other agencies, as part of the banks line of credit arrangements. These arrangements are sometimes referred to as a form of off-balance sheet financing. Please refer to Notes 14 and 32 of the Notes to the Consolidated Financial Statements for more details.

Research and Development

We make disciplined R&D investments that power Wipros ai360 and frontier technologies strategy, and support our clients most pressing transformation and growth needs. Through Wipro Lab45, our innovation lab, we foster R&D in areas such as AI and agentic AI, robotics, cyber resilience, blockchain, and quantum computing, among others. We connect our internal deep tech communities with external innovation ecosystems, including academia, partners, clients, and global platforms such as Topcoder. This collaborative approach fuels focused ideation within our global network of innovation hubs, translating concepts into market-relevant solutions.

Our global network of innovation hubs, part of the Wipro Innovation Network, includes facilities such as our Kodathi Innovation Hub in Bengaluru and one in Silicon Valley, California. These hubs are state-of-the-art incubation centers dedicated to strategic ideation and co-innovation with clients across key sectors such as banking, health, telecommunications, and manufacturing. They embody our commitment to realizing the ‘art of the possible by bringing together a comprehensive innovation ecosystem. This ecosystem includes partners, subject matter experts, and startups, leveraging best practices and our R&D resources to co-create solutions with clients. These initiatives aim to generate valuable intellectual property and deliver high-value business outcomes, differentiating our offerings and supporting our clients transformation and growth journeys.

Our R&D expenses for the years ended March 31, 2023, 2024 and 2025 were 3,675 million, 4,332 million and 4,307 million, respectively.

Material accounting policies, estimates and judgments

Please refer to Notes 2(iv) and 3 of the Notes to Consolidated Financial Statements for a description of material accounting policies, estimates and judgments.