No stock data available
Wipro Q4 Review: Wipro’s March-quarter performance sparked a mixed reaction on the Street, with a strong margin beat and a Rs 15,000 crore share buyback failing to offset concerns around weak revenue momentum and muted near-term growth outlook. While the IT major reported double-digit profit growth and beat margin estimates in Q4FY26, brokers turned cautious after the company guided for a minus 2 per cent to 0 per cent constant-currency growth in Q1FY27. Global brokerages such as Morgan Stanley and Goldman Sachs cut target prices and flagged a potential fourth straight year of revenue decline, even as domestic firms remained divided on whether improving execution and deal wins can revive growth.
Target price Rs 192 (cut from Rs 242)
Weak 4Q revenue with organic decline of 1.3% QoQ in constant currency
FY26 revenue declined 1.6% YoY with underperformance vs peers
1QFY27 guidance weak with expected -1.5% to -2% QoQ growth
Margins resilient but likely to fall short of 17-17.5% band in FY27
Announced Rs150 bn buyback supporting capital return profile
Cuts to revenue growth and margin estimates for FY27-28
Relative underperformance expected with valuation discount to peers
Weak 4Q performance with sharper than expected revenue decline
Guidance implies continued revenue contraction in near term
FY27 likely to be fourth consecutive year of revenue decline
Revenue and earnings estimates cut post results
Neutral read across for broader IT sector
Maintain Neutral with target price of Rs 215
1Q guidance underwhelming; BFSI impacted by client-specific headwinds
Margin headwinds to persist in 1Q
Top client decline and US BFSI weakness to weigh on near-term growth
Miss on revenues & guidance and beat on margins; 1QFY27 guidance at -2% to 0% CC
Deal TCV healthy, but revenue conversion remains the key monitorable:
Model ~1.0% YoY CC revenue growth for FY27E, factoring in a weak start & continued near-term headwinds from ramp-up delays, top client decline, and vertical weakness.
See limited room for margin expansion, given the wage hikes, lower-margin deal ramp-ups, and on going AI investments. We keep our estimates largely unchanged.
Further improvement in execution and a stable conversion of deal TCV to revenue will be key to a constructive view
Target Price of Rs 255 ( earlier Rs 240 )
Guidance on soft Q1FY27 revenue growth of -2% to 0%.
Two acquisitions announced in March, ramp up expected from mid Q1FY27.
Continued Investment in capabilities and AI platforms
EBITM in Q1 is likely to face headwinds from 2 incremental months of salary hike (Mar26 rollout)
Lower margin owing to competitively won large deals in the initial phase
Integration of low-margin M&As, and investments in Wipro Intelligence also is expected to pressure margins.
Emkay highligthed miss in Revenue , followed by softness in BFSI and Healthcare.
Wipro posts mixed set of earnings for the last quarter of FY26 – revenue, PAT & EBIT meet estimates while margins exceed expectations. For Q1 FY27, the tech giant says it expects growth in minus 2 to 0 percent range in constant currency terms. Wipro also announces a 15,000 cr share buyback at Rs 250 per share.
Revenue at Rs 24,236 crore versus Rs 23,555 crore up 2.9 per cent
Profit at Rs 3,502 crore versus Rs 3,119 crore up 12.2 per cent
EBIT at Rs 4,181 crore versus Rs 3,503 crore up 19.8 per cent
EBIT Margin 17.3 per cent versus 14.8 per cent
IT Services Segment Revenue Expected at USD 2.6 Bn- USD 2.65 Bn
Sees Q1FY27 CC Growth at negative 2 per cent To 0 per cent
Q4 Attrition Rate At 13.8 per cent
Profit at Rs 3,502 crore versus ET NOW Poll of Rs 3,466.9 crore
Revenue at Rs 24,236 crore versus ET NOW Poll of Rs 24,269 crore
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
