The IT services firm reported a muted performance, with Q4 constant currency (CC) revenue growth coming in at 0.2% QoQ, below estimates of 0.4-0.5%. Adjusting for the contribution from the Harman DTS acquisition, which brokerage firm UBS estimates added about 1.5% to revenue, the company’s organic growth remained negative.
The company also reported a third consecutive year of decline in CC revenue growth.
FY26 -1.6%
FY25 -2.3%
FY24 -4.4%
Management attributed the weak showing to delayed ramp-ups and client-specific issues.
Guidance for Q1FY27 came in at -2% to 0%, largely in line with expectations, but impacted by a client-specific issue in its Americas 2 segment, partly offset by contributions from recent large deal wins.
Brokerage views remained largely cautious, with most firms either maintaining their stance or trimming price targets. Around 33% of analysts tracking the stock now have a ‘Sell’ rating.
| Brokerage/ | Rating/ | TP(₹) |
|---|---|---|
| Morgan Stanley | Underweight | 194 |
| Nomura | Buy | 250 |
| JPMorgan | Neutral | 200 |
| Kotak Inst Equities | Sell | 190 |
| CLSA | Hold | 194 |
| HSBC | Hold | 210 |
Morgan Stanley maintained an ‘Uunderweight’ rating and cut its price target to ₹194, citing weaker-than-expected organic growth and soft guidance, although it acknowledged that resilient margins and capital allocation may limit downside.
Nomura retained a ‘Buy’ rating with a target of ₹250, calling the quarter a mixed bag.
While guidance fell short of expectations, the brokerage mentioned steady deal wins, margin stability, and improved capital allocation, including the recently announced buyback.
It also raised FY27-28 earnings estimates by 1-2% and expects dividend yield to support the stock.
JPMorgan maintained a ‘Neutral’ rating with a ₹200 target, citing that while margins beat estimates, revenue missed expectations.
The brokerage flagged that margin performance was aided by a provision write-back, which may not be sustainable.
Kotak Institutional Equities remained bearish with a ‘Sell’ rating and a ₹190 target, pointing to weak execution, continued client churn, and persistent underperformance versus peers.
It also cautioned that reliance on acquisitions for growth may not support a sustainable turnaround.
CLSA retained a ‘Hold’ rating with a ₹194 target, citing multiple concerns including revenue leakage, slower deal momentum, and continued weakness in the BFSI segment, though it noted stable margins and the buyback as positives.
HSBC also maintained a ‘Hold’ rating with a ₹210 target, saying that recovery visibility remains weak. It added that while the buyback may support the stock in the near term, it is not a compelling long-term trigger.
Out of 45 analysts covering Wipro, 11 have a ‘Buy’ rating, 19 recommend ‘Hold’, and 15 suggest ‘Sell’.
Shares of Wipro ended largely flat at ₹210.15 on Thursday ahead of the results, and have gained about 8% over the past one month.
