Wipro Tanks Over 4% After ‘Uninspiring’ Q2: SEBI Analyst Says Big Deals Yet to Deliver Growth

Shares of Wipro fell over 4% on Friday after the company reported a 1.15% year-on-year rise in consolidated profit after tax (PAT) at ₹3,246 crore for the September quarter (Q2 FY26).

The company’s consolidated revenue from operations during the July–September period rose 2% to ₹22,697 crore, compared with ₹22,302 crore a year earlier.

Earnings review

Wipro’s latest quarterly results reflected tepid growth and steady profitability. The company’s IT services operating margin stood at 17.2%, while operating cash flow reached ₹3,390 crore, equivalent to 103.8% of net profit.

Employee attrition, or the rate at which staff leave the company, improved to 14.9%. Management said cash flows and cost control remained stable, but revenue growth lagged despite a strong $2.85 billion (₹23,800 crore) pipeline of large deal wins, up 90.5% year-on-year.

Analyst View

SEBI-registered analyst Rajneesh Sharma said Wipro’s second-quarter (Q2) performance was “uninspiring”, with flat revenue and modest profit growth.

He noted that while the company reported robust large-deal momentum and launched Wipro Intelligence, a bundled platform combining artificial intelligence (AI), analytics, and automation, these initiatives have yet to make a visible impact on the top line.

Sharma added that Wipro’s recent success in public sector digital infrastructure projects, including work in rural banking, cloud computing, and government technology platforms, was encouraging, but that execution remains the missing piece for translating deal flow into results.

Technical View

According to Sharma, Wipro’s stock price, trading around ₹253.80, is bouncing from lower channel support but remains trapped in a symmetrical triangle pattern, a technical chart formation that indicates indecision among traders.

He said the stock faces resistance between ₹260 and ₹265, aligning with its 30-week simple moving average (SMA). Meanwhile, the Relative Strength Index (RSI) remains between 40 and 55, suggesting sideways movement.

Sharma said the ascending channel, a price trend pattern formed by parallel rising lines, continues to offer long-term support, but a clear breakout confirmation would require both higher trading volume and a stronger RSI reading.

He described the stock as one that should remain on investors’ “watchlist, not wishlist,” until deal execution translates into consistent earnings growth.

Brokerage Views

Nomura maintained a ‘Buy’ rating with a ₹280 price target, citing stronger-than-expected results, robust deal bookings, and stable margins. It said Wipro’s FY27 dividend yield of 4% and valuation of 19.8x estimated earnings per share (EPS) offer attractive upside.

In contrast, Jefferies retained an ‘Underperform’ rating with a ₹220 target, noting that adjusted results were largely in line with expectations. It forecast 3% EPS growth between FY26 and FY28 and a 3% dividend yield, but described the risk-reward as unattractive given limited near-term catalysts.

What Is The Retail Mood?

On Stocktwits, retail sentiment was ‘bullish’ amid ‘high’ message volume.

Wipro’s stock has declined 19% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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