Breaking Down WNS (Holdings) Limited (WNS) Financial Health: Key Insights for Investors

You're looking at WNS (Holdings) Limited and trying to map out its true financial strength, especially with the Capgemini acquisition news hitting the wire in October 2025; honestly, the full fiscal year 2025 numbers show a company facing headwinds but still executing on profitability. The firm delivered a GAAP Revenue of $1,314.9 million, which was a slight dip of 0.6% from the prior year, but the GAAP Profit jumped significantly to $170.1 million, up from $147.5 million in fiscal 2024, which defintely benefitted from non-recurring items like tax reversals and asset sales. That's a mixed signal, so you need to look closer at the core business: the Adjusted Diluted EPS (earnings per share) came in at $4.55, a solid number, but the underlying challenge remains in segments like Online Travel, where volumes are soft. The near-term opportunity, however, is clear: the acquisition of AI firm Kipi.ai in Q4 FY2025 and the two large transformational deals WNS closed show their strategic shift toward higher-value, digital-led business process management (BPM) is underway, which is what the market rewards now.

Revenue Analysis

You need to know if WNS (Holdings) Limited (WNS) is generating top-line growth and where the money is coming from. The bottom line for fiscal year 2025 (FY25) is that revenue was essentially flat, but the underlying story shows a pivot toward digital transformation and a necessary digestion of client-specific headwinds.

For the full fiscal year ending March 31, 2025, WNS reported total GAAP revenue of $1,314.9 million. This represents a slight year-over-year decline of 0.6% from the fiscal 2024 total. When you look at the non-GAAP figure, 'Revenue less repair payments,' the total was $1,265.5 million, a 1.5% drop from the previous year. That's a minimal dip, but it signals a period of strategic recalibration, not aggressive expansion.

Breakdown of Primary Revenue Sources and Growth Rate

WNS operates as a digital-led business transformation and services company. Their revenue streams are diversified across a spectrum of business process management (BPM) offerings, which is a strength. They aren't selling a single product; they're selling complex solutions.

Their core services fall into several key areas:

• Industry-specific offerings, which are tailored to verticals.
• Customer experience services.
• Finance and accounting (F&A).
• Human resources (HR) and procurement.
• Research and analytics.

The year-over-year revenue decline of 0.6% for FY25 tells you the growth from new business didn't quite offset the churn and macro pressures. Still, the company added 9 new clients and expanded 50 existing relationships in the fourth quarter alone, which shows the sales engine is defintely still running.

Segment Contribution and Near-Term Shifts

While WNS serves over 700 clients across various industries, the biggest story in FY25 was the impact of two key segments. The top-line headwinds were mainly driven by the loss of a large client in the Healthcare vertical and lower volumes in the Online Travel segment. This is a critical risk you need to map: concentration risk in a few large clients or verticals can hit hard.

Here's the quick math on the shift: the company is actively counter-balancing these losses by investing in new, high-growth areas. The acquisition of Kipi.ai in the fourth quarter, for instance, immediately bolsters their capabilities in data, analytics, and artificial intelligence (AI). Plus, they signed two large transformational deals in Q4-one each in the Banking & Financial Services and Travel verticals-showing they are re-establishing momentum in core areas. This re-focus on digital-led services is how they plan to achieve their FY26 revenue less repair payments guidance of $1,352 million to $1,404 million. You can read more about their strategic direction here: Mission Statement, Vision, & Core Values of WNS (Holdings) Limited (WNS).

Profitability Metrics

When you look at a service company like WNS (Holdings) Limited (WNS), profitability isn't just about the final number; it's a three-stage story: Gross, Operating, and Net. For the full fiscal year 2025, WNS delivered a solid performance, especially on the bottom line, demonstrating effective cost control below the gross profit line.

The company's total revenue for the year was $1,314.9 million. Here's the quick math on their core profitability for the period ending March 31, 2025:

• Gross Profit Margin: Approximately 35.40%. This is the profit after accounting for the Cost of Revenue, which is primarily employee and delivery costs in the Business Process Management (BPM) world.
• Operating Profit Margin: Approximately 13.34%. This margin, derived from an Operating Income of $175.4 million, shows strong management of selling, general, and administrative (SG&A) expenses.
• Net Profit Margin: Approximately 12.94%. The final take-home profit was $170.1 million.

Trends and Operational Efficiency

The trend in WNS's profitability is defintely a positive story for investors focused on efficiency. The Net Profit Margin climbed to approximately 13% in fiscal 2025, a notable increase from 11% in fiscal 2024. This expansion-a two-percentage-point jump-is the kind of leverage you want to see, even as revenue was relatively flat year-over-year.

The real operational efficiency story is in the gap between the Gross and Operating Profit Margins. While the Gross Profit Margin of 35.40% is lower than the typical 55% to 65% range for pure Professional Services firms, WNS's model is more labor-intensive BPM. The fact that Operating Income grew to $175.4 million in fiscal 2025 from $140.9 million in fiscal 2024 suggests excellent control over overhead costs, which is crucial in a competitive service industry.

The firm is clearly managing its operational expenses well, translating a mid-range Gross Margin into a strong double-digit Operating Margin. That's solid execution.

Profitability Comparison: WNS vs. Industry Benchmarks

To put WNS's performance in context, we need to compare it to the broader industry. The company's Net Profit Margin of nearly 13% in fiscal 2025 is significantly higher than the benchmark for comparable sectors like Advertising, which saw an average Net Margin of only 3.00% as of early 2025. This suggests WNS has a stronger value proposition or better cost structure than many in the broader services space.

Here is a quick snapshot of how WNS stacks up against a relevant industry proxy, using the most recent available data:

The takeaway here is that WNS is generating a higher percentage of profit from each dollar of revenue than its peers in comparable service-oriented industries. The robust Net Margin, in particular, shows that the company is efficient at managing all costs, from delivery to taxes. For a deeper look at who is betting on this performance, you should be Exploring WNS (Holdings) Limited (WNS) Investor Profile: Who's Buying and Why?

Debt vs. Equity Structure

WNS (Holdings) Limited (WNS) maintains a conservative and well-balanced capital structure, leaning more on equity financing than debt, which is a strong signal of financial stability. You want to see a company that can fund its growth without taking on excessive risk; WNS defintely fits that profile.

As of the fiscal year ending March 31, 2025 (FY2025), the company's total debt stood at approximately $243.5 million. This figure is manageable, especially when you look at the breakdown of how that debt is structured against the company's equity base.

• Short-term borrowings: $15.0 million
• Current portion of long-term debt: $68.7 million
• Long-term debt (net of current portion): $159.8 million

Debt-to-Equity Ratio: A Conservative Stance

The core measure of financial leverage (how much debt a company uses to finance its assets) is the Debt-to-Equity (D/E) ratio. For WNS (Holdings) Limited, the annual D/E ratio for FY2025 was a low 0.52. This means that for every dollar of shareholder equity, the company uses only about 52 cents of debt. This is a very healthy number. Here's the quick math on the major components:

When we compare this to the broader Information Technology Services industry, WNS's ratio is competitive and often lower than peers. For instance, while a D/E ratio under 1.0 is generally considered safe for most non-capital-intensive sectors, the company's 0.52 is right in line with or below competitors like Accenture plc (0.5) and Genpact Ltd (0.6), indicating a preference for equity funding and retained earnings to fuel growth. This low leverage offers a significant cushion against economic downturns and interest rate hikes.

Recent Debt Management and Near-Term Financing Shift

The company actively manages its debt, which is a good sign. In the fourth quarter of fiscal 2025 alone, WNS repaid $33.0 million in debt, demonstrating a commitment to deleveraging even while pursuing growth opportunities. This is how a financially disciplined company operates: using debt strategically, but paying it down quickly.

However, the entire financing picture for WNS (Holdings) Limited is set to change dramatically in the near term. In July 2025, Capgemini announced its intent to acquire WNS for $3.3 billion in an all-cash transaction. This acquisition, expected to close by year-end 2025, fundamentally shifts the discussion from WNS's independent debt management to the acquirer's financing strategy, which includes covering WNS's gross debt. For current investors, the immediate action is less about WNS's long-term debt strategy and more about the deal's mechanics and premium. If you want to dive deeper into the players involved, you can start with Exploring WNS (Holdings) Limited (WNS) Investor Profile: Who's Buying and Why?

Liquidity and Solvency

You need to know if WNS (Holdings) Limited (WNS) has enough immediate cash and near-term assets to cover its short-term bills, especially when the market gets choppy. The direct takeaway is that WNS maintains a healthy, conservative liquidity profile, but its working capital is trending upward, which is a key strength for a service-based business.

As of the end of the 2025 fiscal year (March 31, 2025), the company's liquidity positions, measured by the Current Ratio and Quick Ratio (acid-test ratio), are solid. The Current Ratio, which compares total Current Assets to total Current Liabilities, stands at a strong 1.76 ($564.8 million / $321.0 million). This means for every dollar of short-term debt, WNS has $1.76 in assets that can be converted to cash within a year. A ratio above 1.5 is defintely a comfortable position.

Current and Quick Ratios: A Closer Look

The Quick Ratio (a stricter measure that excludes less-liquid assets like prepaid expenses) is a better indicator of immediate cash strength. For a services company like WNS, we look at cash, investments, and receivables. The Quick Ratio is approximately 1.56, calculated using current assets like Cash and cash equivalents ($106.9 million), Investments ($156.9 million), Accounts receivable ($129.7 million), and Unbilled revenue ($108.1 million), totaling $501.6 million in highly liquid assets against the $321.0 million in current liabilities. This is well above the 1.0 benchmark and shows great short-term financial flexibility.

Working capital (Current Assets minus Current Liabilities) for WNS sits at a healthy $243.8 million as of March 31, 2025, up from prior periods. This positive trend indicates the company is effectively managing its operating cycle and has a substantial buffer to fund its growth initiatives, like the recent acquisition of Kipi.ai in Q4 2025, which expands their capabilities in data and AI. This is the kind of balance sheet strength you want to see when a company is making strategic, forward-looking investments.

Cash Flow Statements Overview

The cash flow statement for the 2025 fiscal year tells the real story of how cash moves through the business. WNS generated strong cash from operations (CFO) totaling approximately $207.1 million for the full year. This is the lifeblood of any business-cash generated from core services.

• Operating Cash Flow (CFO): Approximately $207.1 million (sum of quarterly CFOs). This consistent, positive cash generation from its business transformation and services is a major strength.
• Investing Cash Flow: The company guided for capital expenditures (CapEx) of up to $65 million for the year. This CapEx is the necessary investment in technology and infrastructure to maintain its competitive edge and deliver on its Mission Statement, Vision, & Core Values of WNS (Holdings) Limited (WNS).
• Financing Cash Flow: Key activities included significant debt repayment and share repurchases. WNS repaid over $100 million in debt across the year and repurchased 2.8 million ordinary shares, signaling confidence in its valuation and a disciplined approach to capital allocation.

The strong CFO easily covers both the CapEx and a significant portion of the debt and share repurchase activities, demonstrating the company is self-funding its growth and returning capital to shareholders without straining its balance sheet. The cash flow conversion is excellent. The only potential liquidity concern is the general economic uncertainty impacting client spending, but the current cash position provides a substantial cushion.

Valuation Analysis

You're looking at the valuation of WNS (Holdings) Limited (WNS) right at the point of its exit from the public market, and the key takeaway is this: the final trading price reflected a premium driven by the acquisition, not just organic growth. The traditional valuation models, like Price-to-Earnings (P/E), suggest a stock that was fairly valued to slightly rich compared to its historical average, but the acquisition by Capgemini in late 2025 fundamentally changed the investment equation.

The stock's journey over the past 12 months tells a clear story of a company in play. WNS (Holdings) Limited traded at a 52-week low of $42.68 in January 2025, but it surged to a high of $76.40 by October 2025, just before the acquisition closed. The final trading price settled near $76.48 as of November 2025, which is a massive gain from the low, driven almost entirely by the acquisition premium, not just quarterly earnings.

Is WNS (Holdings) Limited Overvalued or Undervalued?

At its final trading price, WNS (Holdings) Limited was likely overvalued relative to its pre-acquisition analyst consensus, but fairly valued to the acquirer. The average 12-month analyst price target was around $72.80, which was below the final trading price of $76.48. This gap is the classic sign of a merger arbitrage scenario, where the market price rises to meet the definitive offer price, surpassing the fundamental analyst targets.

Here's the quick math on the core multiples based on the fiscal year (FY) 2025 data, which ended March 31, 2025:

• Price-to-Earnings (P/E) Ratio: The trailing twelve-month (TTM) P/E ratio as of November 2025 was approximately 20.4x. This is based on the final trading price and the company's earnings. For context, the Adjusted Diluted Earnings Per Share (EPS) for FY 2025 was $4.55, which included a non-recurring tax benefit.
• Price-to-Book (P/B) Ratio: The P/B ratio was around 4.2x. For a business process management (BPM) company that relies heavily on human capital and intellectual property, a P/B ratio over 4.0x is a premium, suggesting investors valued the company's intangible assets and future growth potential highly.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio for FY 2025 (ending March 31, 2025) was 11.9x. This is a key metric for capital-intensive service businesses. To be fair, this multiple was below the company's historical five-year mean of 14 times, suggesting that, on an operational basis, the stock was defintely a bargain for the acquirer.

The Dividend and Delisting Reality

If you were looking for a steady income stream, WNS (Holdings) Limited is no longer an option. The company has been delisted from the NYSE as of October 2025, following the completion of its acquisition by Capgemini. This means there is no longer a dividend yield or payout ratio to analyze, as the stock has ceased trading as an independent entity.

What this estimate hides is the fact that the company's capital allocation strategy was focused on share repurchases, not dividends. The net payout yield (dividends plus net stock repurchases) for FY 2025 was still a healthy 8.3%, indicating a strong return of capital to shareholders right up until the acquisition, mostly through buybacks.

For a deeper dive into who was holding WNS (Holdings) Limited before the acquisition and why, you should check out Exploring WNS (Holdings) Limited (WNS) Investor Profile: Who's Buying and Why?

Risk Factors

You're looking at WNS (Holdings) Limited's financials, and while the full-year 2025 GAAP profit of $170.1 million looks solid, the real story is in the risks that drove a marginal decline in revenue. As a seasoned analyst, I see three core areas you need to focus on: client concentration, human capital volatility, and the massive, near-term integration risk from the Capgemini acquisition.

The Business Process Management (BPM) industry is defintely a tough neighborhood right now. WNS (Holdings) Limited's internal and external risks are typical for a global service provider, but the magnitude is what matters. In fiscal year 2025, the company's net revenue (excluding repair payments) actually saw a decline of 1.5% to $1,265.5 million, a direct result of customer-specific headwinds.

Operational and Client-Specific Risks

The primary operational risk is the dependence on a limited number of clients and industries, which played out in FY2025. The company explicitly cited the loss of a large healthcare client as a key headwind. This underscores a fundamental truth: losing even one anchor client can materially impact the top line. Another pressure point is human capital. The fourth quarter fiscal 2025 attrition rate spiked to 39%, up from 33% a year prior. That level of employee turnover is expensive and disrupts service quality, a critical factor for a services firm with 64,505 professionals globally.

• Retain clients: Single-client loss hits revenue hard.
• Manage talent: High attrition erodes operational stability.
• Currency shifts: Fluctuations impact global revenue reporting.

Competitive and Technological Risks

The BPM sector is facing an existential threat from technological innovation, specifically Artificial Intelligence (AI). WNS (Holdings) Limited must constantly invest to avoid disintermediation (being cut out of the value chain). The competition is fierce, not just from traditional rivals but from in-house automation efforts by clients. The company's strategy here is clear: invest to transform. The acquisition of Kipi.ai in Q4 FY25, bolstering their data, analytics, and AI capabilities, is a direct mitigation strategy against this risk. They are leaning into AI-led transformation to offset client volume ramp-downs, a smart move.

The Capgemini Acquisition: The Near-Term Game Changer

Forget the long-term risks for a minute; the most significant near-term factor is the acquisition by Capgemini, which was sanctioned in October 2025. This event fundamentally changes the risk profile from an independent entity to an integration challenge. The risk shifts from standalone performance to successful merger integration. Here's the quick math: the company is now part of a much larger organization, which offers stability but introduces integration complexity, potential client conflicts, and employee uncertainty during the transition. The focus now is on maintaining client continuity and retaining key talent as the two organizations merge. This is the single most important action item for management right now.

The company has a strong track record of managing risks like data privacy through regular audits and has a low tolerance for tax risks, but a merger is a different beast entirely. You need to monitor the integration updates closely, especially any client overlap or key executive departures. To dive deeper into the core financial metrics that led to this strategic move, check out the full analysis at Breaking Down WNS (Holdings) Limited (WNS) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking for a clear map of where WNS (Holdings) Limited (WNS) is headed, especially after a fiscal year that saw some top-line headwinds. The direct takeaway is this: WNS has successfully pivoted its strategy toward high-value digital and AI-led services, which is now translating into solid forward-looking guidance for fiscal year 2026 (FY2026).

The company's full fiscal year 2025 (FY2025) GAAP revenue was $1,314.9 million, with a net income of $170.1 million. Still, the management is projecting a strong rebound, forecasting revenue less repair payments to grow between 7% to 11% in FY2026 on a constant currency basis. That's a clear signal of confidence in their strategic shift.

Here's the quick math on the earnings side: FY2025 Adjusted Diluted EPS (non-GAAP) was $4.55. For FY2026, the guidance range is between $4.43 and $4.70, but this represents an underlying increase of 8% to 15% when you exclude non-recurring benefits from FY2025. That's a healthy earnings growth trajectory.

The growth isn't just a hope; it's grounded in concrete actions. The biggest driver is the deep commitment to product innovations, especially in Generative AI (Gen AI). WNS has developed over 30 Gen AI use cases and has already trained more than 22,000 employees to deliver these capabilities to clients. This is how you future-proof a business process management (BPM) firm.

Market expansion is also a key component. In the fourth quarter of FY2025 alone, WNS added 9 new clients and expanded 50 existing relationships. Plus, they secured two large, transformational deals in the Banking & Financial Services and Travel verticals, which will fuel revenue over the next few years. That's defintely a sign of a strong, healthy pipeline.

Strategic moves are also bolstering their capabilities. The acquisition of Kipi.ai in Q4 FY2025 immediately enhances their data, analytics, and AI offerings. This acquisition is expected to contribute 2% to the midpoint of their FY2026 revenue projection, showing how targeted M&A can accelerate organic growth.

WNS holds a few critical competitive advantages that position it well against rivals. They maintain a leadership position in the BPM sector, particularly in highly regulated areas like the insurance and healthcare industries, by offering deep domain-specific services. This focus on domain-led process automation and cost reduction is what clients are demanding right now. You can learn more about who is betting on this future in Exploring WNS (Holdings) Limited (WNS) Investor Profile: Who's Buying and Why?

The company's growth is driven by a clear set of factors:

• Integrating Kipi.ai for advanced AI/analytics.
• Scaling 30+ Gen AI use cases for clients.
• Converting a robust large deal pipeline.
• Leveraging domain expertise in insurance and healthcare.

What this estimate hides is the potential for sector-specific volatility, like in the online travel vertical, but the company's broad client diversification and strategic investments in high-demand digital services suggest they can navigate those risks. They have 90% visibility to the midpoint of their FY2026 revenue projection, which is a strong indicator of near-term stability.