Accumulate Wipro; target of Rs 272: Deven Choksey

Deven Choksey recommended accumulate rating on Wipro with a target price of Rs 272 in its research report dated January 19, 2026.

Broker Research

January 20, 2026 / 11:36 IST

Accumulate

Deven Choksey report on Wipro

Revenue came in at INR 235,558 mn, up 3.8% QoQ and 5.5% YoY, ahead of our estimate of INR 226,313 mn (+4.1% beat), driven by steady demand traction and improved execution across Europe and APMEA. EBITDA stood at INR 43,785 mn, down 1.1% QoQ and 4.3% YoY, below our estimate of INR 44,186 mn by 0.9%, as operating leverage was offset by higher employee costs and elevated G&A spends; EBITDA margin declined to 18.6% vs 19.5% in Q2FY26. PAT stood at INR 31,450 mn, down 3.6% QoQ and 6.6% YoY, below our estimate of INR 31,976 mn (–1.6% miss), impacted by weaker operating performance and higher effective tax outgo; PAT declined sequentially despite stable other income. PAT margin came at 13.2%, down 106 bps QoQ and 179 bps YoY, below our estimate of 14.1%, reflecting operating margin pressure and elevated cost structure. Geographical mix remained broadly stable sequentially, with Europe (26.7%) and APMEA (11.1%) sustaining growth momentum, while Americas 2 (29.0%) remained soft, weighing on overall topline acceleration.

Outlook

We estimate revenue/earnings CAGR of 3.6%/1.1% over FY25-FY27E. The stock is currently trading at 19.8x FY27E. We value Wipro at a P/E multiple of 20x to Dec’27 EPS. Accordingly, we reiterate our “ACCUMULATE” rating on the stock.

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