The Bengaluru-based technology services provider reported results after market hours on Wednesday, in which the constant currency revenue growth for the January-March quarter, was in-line with the company’s expectations, but below what the Street anticipated.
Wipro posted constant currency revenue decline of 0.8% during the March quarter on a sequential basis, whereas it had guided for growth to be between a decline of 1% and growth of 1%. The Street though, was working with a 0.2% decline.
For the first quarter of FY26, Wipro expects revenue to be between $2,505 million and $2,557 million, implying a revenue decline between -1.5% to -3.5%.
Brokerage firm Nuvama Institutional Equities has downgraded Wipro to ‘Hold’ with inexpensive valuations limiting the downside potential. The brokerage has also cut its price target by to ₹260 from ₹300 earlier.
Nuvama had upgraded Wipro few months ago, on the twin premise of a benefit of revival in discretionary spend, as it has higher exposure to discretionary; and relatively inexpensive valuations.
With the rapid deterioration of macro, leading to uncertainty around discretionary spends and Wipro’s valuation becoming similar to peers TCS, Infosys and HCLTech – the brokerage does not see either of the two premises holding up any longer.
Emkay Global has maintained a ‘Reduce’ rating on the stock, with a price target of ₹260 per share.
What the brokerage liked: Healthy deal intake, margin resilience, and a steady momentum in Capco.
What it did not like: Revenue miss and weak Q1 guidance.
Emkay wrote in its note that the company experienced cautious client behavior, evidenced in the pause of a few programs, delay in ramp ups, and some instances of ramp downs amid elevated macro uncertainty with US tariff announcements.
While macro and geopolitical uncertainty remains at elevated levels leading to low predictability in the short run, the management stays focused on execution rigor and client satisfaction, to accelerate growth over the medium term.
Bernstein has an ‘Underperform’ rating on Wipro, with a price target of ₹200 per share. The brokerage said that Wipro’s management reiterated concerns about an uncertain global macro environment, with clients continuing to adopt a cautious approach to IT spending.
The company’s Q4 FY25 performance fell short of expectations. IT services revenue declined 0.8% quarter-on-quarter, reaching the lower end of the company’s guidance range.
Moreover, the revenue guidance for Q1 FY26 — projected at a decline of 3.5% to 1.5% QoQ — was below Bernstein’s expectations, signaling the possibility of negative growth for FY26.
Nomura has a ‘Buy’ recommendation on the stock, but reduced its price target to ₹280 per share. The foreign brokerage cited macroeconomic uncertainty as a key factor weighing on the company’s Q1 FY26 guidance.
Nomura said that macro uncertainty is impacting decision-making and demand from clients. Further, margin improvement is unlikely given the weak revenue outlook.
Wipro’s earnings per share (EPS) for FY26–27 may be cut by 2–4%.
The stock offers a 4% dividend yield for FY27 and is currently trading at 18.6 times its expected FY27 earnings.
Out of the 45 analysts that have coverage on Wipro, 11 still have a ‘Buy’ rating on the stock, 15 say ‘hold’, while 19 have a ‘sell’ rating.
Shares of Wipro settled 1.5% higher on Wednesday at ₹247.5. The stock has fallen 23.5% from its 52-week high of ₹323. Over the last one month, the stock is down 5%.
