Wipro stock tanks 8% as weak Q1 earnings disappoint Street

The consolidated net profit of Wipro for Q1 FY25 increased 6 percent QoQ to Rs 3,003.2 crore. It surpassed Moneycontrol's estimate of Rs 2,953.

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26 Aug, 2025 12:21

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Wipro shares fell as much as 8 percent on July 22 after the company delivered a weak Q1 FY25 performance, with a 1 percent quarter-on-quarter (QoQ) decline in its consolidated revenue. This is particularly concerning when compared to its competitors, TCS and Infosys, which reported 2-3 percent QoQ growth.

Wipro's Q1 FY25 revenue and guidance for Q2 FY25 fell below expectations. Citi Research said that the Q2 guidance is likely to disappoint investors who had higher expectations.

Also Read | Wipro ADR falls over 10% after Q1 revenue misses estimates

The company's consolidated revenue declined by 1.1 percent on quarter to Rs 21,963.8 crore, falling short of Moneycontrol's forecast of Rs 22,229 crore. Bengaluru-based Wipro also revised its revenue guidance for the Q2 FY25, suggesting a potential sequential decline of 1 percent or a slight growth of up to 1 percent (in constant currency terms).

Nomura had a 'Buy' call on Wipro with a target price of Rs 600 and Citi had a 'Sell' call with Rs 495 as the target price.

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However, brokerages noted that the early recovery in discretionary demand could potentially boost Wipro's future performance.

Nuvama said that Wipro has a long way to go in order to reach industry average growth. While the brokerage expects Wipro to continue underperforming its peers, it also notes that its low valuation and high dividend yield help mitigate downside risk. Nuvama has maintained its 'Hold' rating on Wipro. The brokerage increased the target price for the stock to Rs 530 Rs 460 as the BFSI segment continued to grow and consumer business also picked up.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.