Wipro shares rise 3% as it delivers better-than-expected Q1, but brokerages remain on "hold"

Wipro Q1 surprises on strong deals, but brokerages remain guarded on outlook

Shares of Wipro surged 3 percent to Rs 271 on July 18 after the company reported a June quarter performance that was better than expected, driven by strong execution of large deals. However, brokerages remain in a wait-and-watch mode as the management has guided for a stronger recovery in the second half of this fiscal year.

So far in 2025, the stock of this IT services major has declined 13 percent, compared with a 5 percent gain in the benchmark Nifty 50 index.

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Motilal Oswal reiterated its "sell" rating on Wipro, with a target price of Rs 230 per share, citing a soft start to the year.

The brokerage noted that while strong total contract value (TCV) from deals and early signs of stabilisation in Europe prompted a slight upward revision to FY26 and FY27 earnings estimates (by around 2 percent), there is limited room for margin expansion from current levels. They added that further improvement in execution and consistent conversion of deal wins to revenue will be key to turning constructive on the stock.

Analysts at Choice Broking maintained their "reduce" rating with a target price of Rs 252. They pointed out that future performance depends heavily on execution and evolving macroeconomic conditions, as demand remains uncertain.

According to analysts, Wipro expects Q2 revenue to grow between minus 1 percent and plus 1 percent sequentially in constant currency terms. The company expects a stronger start to the second half of FY26, supported by large recent deal wins and a healthy pipeline. Analysts believe that topline recovery will depend on favorable macro conditions and the positive impact of the Phoenix deal signed in Q4FY25, which could help rebound growth in Q3FY26 and position the company well for H2.

Nuvama also maintained a "hold" rating with a target price of Rs 270, stating that strong deal wins should support growth in the coming quarters.

The brokerage said it is awaiting clearer signs of macroeconomic improvement and consistent performance to turn more positive on the stock. It raised its FY26 and FY27 earnings estimates by 4.3 percent and 1.6 percent, respectively, on expectations of higher growth.

Goldman Sachs kept its sell rating on Wipro but slightly raised its target price to Rs 254 from Rs 247 earlier. JPMorgan stayed neutral, maintaining its target price at Rs 260.

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