ICICI Securities research report on Wipro
Wipro (WPRO) grew marginally better than expected at -2% CC, within its guided range for Q1FY26. Growth was led by the healthcare and technology verticals. Guidance for Q2FY26 is flat at the midpoint. Strong TCV with two mega deals is the highlight. Focus shall be on execution of these mega deals. Though WPRO has indicated that H2FY26 will likely be better than H1 on the back of these deals, negative seasonality of H2 will also be at play. The company has indicated that margin might be impacted on upfront investment for large deals for a few of the quarters. WPRO has been losing clients and has trouble gaining broad-based growth traction across verticals. We factor in a -0.5% IT services revenue USD growth print for FY26.
Outlook
We cut FY26–28E EPS by ~1–2% and maintain REDUCE with a one-year forward TP of INR 240 on a target PE of 18x.
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