Wipro reported weak revenue performance in Q4, while margins stood steady. Revenue declined 0.8% QoQ CC, a tad below our expectations. IT Services EBITM was flat at 17.5%. Deal intake remained strong at ~USD4bn in Q4 (includes large-deal bookings worth ~USD1.8bn), with book-to-bill at 1.5x. The company experienced cautious client behavior, evidenced in the pause of a few programs, delay in ramp ups, and some instances of ramp downs amid elevated macro uncertainty with US tariff announcements. The management has guided to revenue decline of 3.5%, to 1.5% CC QoQ in Q1 – lower than our expectations. Q1 guidance assumes some demand improvement at the upper end, while the lower end builds in some deterioration. While macro and geopolitical uncertainty remains at elevated levels leading to low predictability in the short run, the management stays focused on execution rigor and client satisfaction, to accelerate growth over the medium term.
OutlookWe trim FY26-27E EPS by 0.7% to 1.2%, factoring in the Q4 performance and weak Q1 guidance. We maintain REDUCE on the stock with TP of Rs 260, at 18x Mar-27E EPS.
For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Wipro - 17042025 - emkayDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
