Wipro shares surged 6.5% to ₹185.45 on Friday, October 16, as investors focused on the company's slightly better-than-expected overall Q2 earnings performance despite the sequential fall in net profits. The stock performance came as trading volumes surpassed 5.94 crore equity shares across NSE and BSE combined, triggering high-volume momentum after a subdued performance during early hours. As per NSE data, the stock was trading 5.8% higher at around ₹184.22 as of 1 PM IST on October 16. The stock has shown strong momentum in recent weeks, rising 9.8% in the last one-month period and 12.75% in the past five market sessions, though it remains down 31.4% year-to-date in 2026.
Wipro reported net profit of ₹3,200 crore in Q2FY27, declining 1.9% year-on-year but showing nearly 5% sequential decline from the previous quarter. Revenue from operations rose 9.1% year-on-year to ₹24,752.7 crore, slightly beating estimates of ₹24,710 crore. According to NSE filings data, the company's IT services revenue gained 1.1% sequentially in the same period, while EBITDA surged 11.21% YoY to ₹4,863 crore compared to ₹4,372 crore in the corresponding quarter a year ago. The stock's performance reflects investor confidence in the company's ability to deliver results that slightly exceeded muted expectations, driven by operational improvements and margin expansion despite continued investments in the business.
The company's total headcount declined by 6,716 employees to 236,328 in Q2FY27, compared to 243,044 in the previous quarter. Voluntary attrition for the trailing 12 months was 13.8%, marginally lower than 13.9% in Q1FY27 and 14.9% in Q2FY26. The company reported operating cash flow of ₹5,300 crore, equivalent to 165.8% of quarterly net income, representing a 61.3% sequential increase. NSE filings confirm that margin expansion was aided by operational improvements and rupee depreciation, despite continued investments in the business.
Wipro signed nine large deals in Q2, including pacts with industrial giant ABB, cybersecurity firm Crowdstrike and oil major Aramco during the quarter ended September 30. However, total contract bookings declined 22.9% quarter-on-quarter in constant currency terms to $2.6 billion, with large deal bookings falling more sharply, dropping 58.6% sequentially to $674 million from $1.626 billion in the preceding quarter. For the October-December quarter, Wipro guided for IT services revenue of $2,571 million to $2,625 million, translating into sequential growth of minus 1.5% to plus 0.5% in constant currency terms. Management clarified that two deal closures were delayed and are expected to close in Q3, potentially supporting revenue upside in Q4FY27.
Citibank analysts noted that Wipro delivered slightly better-than-expected earnings in Q2FY27, exceeding muted expectations, but warned that "forward-looking indicators continue to suggest sluggish trends" and expect the third quarter to be another quarter-on-quarter decline at the midpoint. Nomura analysts slightly beat estimates on revenue with in-line margins, while Jefferies analysts expect the growth outlook to remain weak, citing a 45% YoY decline in deal wins that points to a weaker growth outlook. The company's market capitalisation stood at more than ₹1.82 lakh crore as of the trading session on Friday, October 16, 2026. Despite recent gains, Wipro shares have declined 48% over the last five years and 10% in the last three years, with the stock dropping more than 27% in the last one-year period.
For Q3FY27, Wipro has guided for -1.5% to +0.5% sequential revenue growth in constant currency, incorporating normal seasonal furloughs and lower working days. Nomura analysts expect the company to return to target margin band of 17-17.5% over time, while Jefferies analysts maintain their expectations for weak growth outlook in the upcoming period. The company's stock has shown resilience in the near term, rising 9.8% in the last one-month period and 12.75% in the past five market sessions, though it remains down significantly over longer periods. Dam Capital expects FY27 revenue to remain flat YoY, assuming no incremental client-specific impact, with FY28 growth expected after four years of revenue decline.
