The brokerage said that Wipro’s IT Services performance in Q1 topped Street expectations, while Q2 guidance was in line with no negative surprises. It added that strong large deal wins bode well for growth acceleration in the second half of the fiscal year, and improved capital allocation should support valuation multiples.
Nuvama Institutional Equities also maintained its ‘Hold’ rating on Wipro, raising the target price from ₹260 to ₹270. The brokerage continues to value the company at 20x FY27E PE.It highlighted robust large deal wins and a healthy deal pipeline, with management noting strong ACV (annual contract value) growth, which is expected to support revenue momentum in the coming quarters.
However, Nuvama has moderated its margin expectations, citing the need for investments to ramp up large deals. That said, the brokerage remains confident in Wipro’s cost management capabilities and expects margins to be maintained in the 17–17.5% range.
While acknowledging this as a solid start to FY26, Nuvama said it would await consistent delivery before turning positive on the stock.
Meanwhile, Emkay Global retained a ‘Reduce’ rating with a target price of ₹280, saying that it prefers to wait for more clarity on the margin trajectory before taking a constructive view.The brokerage appreciated Wipro’s healthy deal intake and strong cash conversion but flagged continued weakness in Europe and an EBIT margin miss in Q1.
It has trimmed FY26-28 EPS estimates by 1%, factoring in the latest quarterly performance.
Wipro’s revenue in constant currency terms declined by 2% sequentially, which was in-line with expectations and at the mid-point of the guidance of -3.5% to -1.5%.
The Bengaluru-based IT Services provider’s margins improved during the June quarter to 17.5%.
For the ongoing September quarter, Wipro sees revenue growth of -1% to +1% in constant currency terms on a sequential basis, which is also in-line with expectations.
Total bookings increased by 24.1% from the last quarter to $4,971 million. The company also won 16 large deals, including two mega deals. Large deal bookings stood at $2,666 million.
Of the 46 analysts tracking Wipro, nine have a ‘Buy’ rating, 15 recommend ‘Hold’, and 22 have a ‘Sell’. CLSA has the highest target price on the Street at ₹319, while Bernstein has the lowest at ₹200.
Wipro shares closed 1.54% lower on Thursday at ₹258.75 and are down 14% so far in 2025.
