Wipro shares crash 7% as weak Q3 guidance outweighs steady operations; brokerages split on stock outlook

Wipro Ltd

Wipro Ltd shares tumbled nearly 7 percent in Monday’s morning trade to around Rs 249, extending their recent underperformance, as investors reacted to weaker-than-expected near-term guidance issued alongside the company’s Q3 results late Friday. The selloff reflects investor concerns despite relatively steady operational performance in the fiscal third quarter.

Today's fall adds to Wipro’s weak longer-term showing. The stock is down about 17.3 percent over the past year, sharply lagging the Nifty 50’s roughly 10 percent gain over the same period.

For the quarter ended December 31, 2025, Wipro reported a consolidated net profit of Rs 3,119 crore, down 4 percent quarter-on-quarter and 7 percent year-on-year. IT services revenue stood at Rs 23,378 crore, missing Street estimates but rising 3.3 percent sequentially. Operating performance was mixed, with the company highlighting margin discipline and strong cash generation.

However, at the heart of investor concern seems to be Wipro’s guidance for the March quarter, which came in below Street expectations, even as the company reported sequential revenue growth and maintained margins.

Wipro guided for IT services revenue of $2.635 billion to $2.688 billion for the March quarter. This implies sequential growth of 0 percent to 2 percent in constant currency terms.

Post-results brokerage commentary points to a clear divide. While some analysts see value support and operational discipline, others argue that weak deal momentum and execution risks justify caution -- views that appear to be driving Monday’s sell-off.

Nomura: Buy, but flags guidance disappointment

Nomura reiterated a Buy rating on Wipro with a target price of Rs 290 per share, arguing that Q3 operational performance was ahead of expectations. The brokerage acknowledged that Q4 guidance was weaker than anticipated, but noted that deal wins remained steady and margin discipline was intact. While Nomura cut its EPS estimates for FY27–FY28, it believes valuation comfort and dividend yield provide downside support to the stock.

Jefferies: Underperform on growth and margin risks

Jefferies struck a more cautious tone, maintaining an Underperform rating with a target price of Rs 220 per share. The brokerage said Q3 adjusted results were largely in line with expectations, but flagged weak deal bookings and delays in ramping new contracts as key risks to growth guidance. Jefferies also warned that margins could come under pressure from deal ramp-ups and acquisitions, and said low EPS CAGR and limited dividend appeal make the stock’s risk-reward unattractive.

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