Wipro shares fell by 2.01% to ₹174.17 on Friday morning, extending its decline in early trade, a day after several corporate announcements. The stock was trading 1.4% lower at ₹175.76 as of 9:40 AM, with over 7 million shares changing hands, as reported by Business Standard. The weakness followed Wipro's first-quarter FY27 earnings, where the company reported a net profit of ₹3,325 crore, rising less than 1% year-on-year but declining 4.7% sequentially, which missed Bloomberg consensus estimates of ₹3,460 crore. Revenue grew 10.6% year-on-year to ₹24,478.6 crore but remained broadly in line with expectations. Several large-cap IT peers traded higher as of 9:25 am, with Infosys, Tech Mahindra, and TCS gaining by over 2%, followed by LTM, HCLTech, and Coforge. The stock remains down 33.5% so far in 2026, compared with a 7.9% decline in the Nifty 50, highlighting the significant underperformance relative to the broader market.
Wipro reported a consolidated net profit of ₹3,325 crore for Q1 FY27, registering a sequential fall of 4.7%, while revenue grew 10.6% year-on-year to ₹24,478.6 crore. As per the company's press release, IT services revenue stood at $2.61 billion, declining 1.4% QoQ but rising 1% YoY. The bigger concern for investors was profitability, with earnings before interest and taxes (EBIT) falling 8.4% quarter-on-quarter to ₹3,829 crore, while the EBIT margin narrowed 160 basis points to 15.6% from 17.2% in the previous quarter, reflecting higher costs and continued investment spending. Earnings per share (EPS) for the quarter were ₹3.20, a decrease of 4.2% QoQ and an increase of 0.6% YoY. Total bookings came in at $3.37 billion, down 2.4% QoQ in constant currency, though large deal bookings rose 12.9% sequentially to $1.63 billion. Wipro's board declared an interim dividend of ₹6.00 per share (300%) with an effective date of January 27, 2026, significantly higher than the previous interim dividend of ₹5.00 per share announced in July 2025.
The key disappointment came from Wipro's September quarter revenue guidance of -1.5% to +0.5% in constant currency, which was weaker than expected. According to Business Standard, Wipro said that it sees its IT Services business revenue between $2,574 million to $2,627 million for Q2, translating to sequential guidance of -1.5% to +0.5%. Dipeshkumar Mehta from Emkay Global noted that Wipro logged a weak revenue performance in Q1, on delayed ramp-ups of previously won large deals, continued weakness in select BFSI and Healthcare accounts, and elongated client decision cycles amid a challenging macro environment. Jefferies highlighted that Wipro's Q1 performance disappointed due to a 140-basis-point sequential decline in margins and revenue guidance of -1.5% to +0.5% quarter-on-quarter in constant currency for the September quarter, which came in below expectations. Jefferies also noted that Wipro has struggled to deliver organic revenue growth over the past three years and believes FY27 is unlikely to mark a turnaround, reflecting a soft H1, slower deal ramp-ups, and uneven recovery across verticals.
Chief Executive Officer and Managing Director Srini Pallia said the demand environment remained broadly unchanged amid persistent macroeconomic uncertainty, with clients continuing to prioritise cost optimisation and vendor consolidation while remaining cautious on discretionary technology spending. As reported by Livemint, Pallia said enterprises were increasingly redirecting technology budgets towards AI initiatives rather than expanding overall IT spending, resulting in greater scrutiny of discretionary projects. Pallia said Wipro continued to see a healthy pipeline but had factored prevailing uncertainty into its September-quarter guidance. He added that demand was improving in the Americas BFSI segment, while Europe remained weak, particularly in the energy, manufacturing and resources vertical. The management indicated that the demand environment remains largely unchanged, with clients continuing to prioritize cost optimization, while discretionary spending remains selective.
Following Wipro's June quarter results, brokerages have shown divergent reactions with Nomura retaining its 'Buy' rating while Jefferies maintained its 'Underperform' stance. According to Business Standard, Equirus Securities maintained a 'Reduce' rating with a target price of ₹208, noting that the overall result was much weaker than expected given continuing disappointing growth guidance for Q2 and material miss on EBIT margin in Q1. Motilal Oswal Financial Services maintained a 'Neutral' stance with a target price of ₹160, cutting FY27E EPS estimate by ~3.5% and expecting Wipro to lag peers with FY27 likely to be another year of flat to slightly negative growth. Antique Stock Broking maintained a 'Hold' rating with a target price of ₹190, cutting FY27/FY8 EPS estimates by 3%/2% respectively. Jefferies cut its FY27-FY9 revenue and profit estimates by 2-5% and expects Wipro to deliver an earnings per share (EPS) CAGR of around 5% over FY27-FY9. Jefferies noted that the combination of modest earnings growth and dividend returns does not offer an attractive risk-reward profile, though it acknowledged the company's estimated 5% dividend yield. Motilal Oswal's latest research report dated July 16, 2026, reiterated its Neutral rating with a target price of ₹160, valuing Wipro at 11x FY28E EPS, cutting FY27E EPS estimates primarily to factor in weaker-than-expected Q1 margin performance and weaker first-half organic growth.
