Wipro shares crash 4.6% today, top Nifty 50 loser; Q2 results show muted revenue growth, cautious guidance

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26 Aug, 2025 12:21

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Wipro Ltd shares plunged as much as 4.6 percent on Friday morning, emerging as the biggest loser on the Nifty 50 index, a day after the IT company announced its Q2 FY26 results. The stock fell to the day's low of Rs 242 on NSE from the previous close of Rs 253.81, as as brokerage views remained mixed on the muted revenue growth and cautious guidance.

Wipro reported a modest 1.15 percent year-on-year rise in consolidated profit after tax to Rs 3,246 crore for the quarter ended September 2025, compared to Rs 3,209 crore a year earlier. Consolidated revenue from operations rose 2 percent to Rs 22,697 crore, slightly below CNBC-TV18’s poll estimate of Rs 22,700 crore.

“Our revenue momentum is strengthening, with Europe and APMEA returning to growth, and our operating margins holding steady within the narrow band. Bookings surpassed $9.5 billion for H1 FY26,” said Srini Pallia, CEO and Managing Director, Wipro. He added that the company would continue to focus on resilience and AI-driven transformation through its “Wipro Intelligence” suite of AI-powered platforms and solutions.

• Also read | Wipro Q2 results: Net profit up 1% at Rs 3,246 crore, revenue rises 2%

CFO Aparna Iyer said that three of the company’s four strategic market units grew sequentially in Q2, while key financial metrics such as operating cash flow and margin remained strong. Wipro’s large deal bookings in the first half of FY26 surpassed its total large deal wins for FY25, with Q2 large deal bookings rising to $2.85 billion from $2.67 billion in the previous quarter.

Brokerages expressed divergent opinions on Wipro stock following the results.

• Nomura has a ‘Buy’ rating on Wipro stock with a target price of Rs 280 per share, calling Q2 “a beat on most parameters” and highlighting robust deal wins and margin discipline. The brokerage said Wipro’s FY27 dividend yield stood at 4 percent and the stock traded at 19.8 times FY27 estimated earnings per share.
• Jefferies, however, has an ‘Underperform’ call with a target price of Rs 220 per share, saying that adjusted for a Rs 120-crore one-time charge, the results were in line with expectations. It cautioned that margins could face pressure from deal ramps and recent acquisitions, and projected a modest 3 percent EPS CAGR and 3 percent dividend yield over FY26-28, rendering the risk–reward less attractive despite improving deal momentum.

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