Wipro’s Q4FY26 results have left the Street divided and investors with more questions than answers. On one hand, the company announced its biggest-ever buyback. But on the other hand, the forecast for the Q1 pointed was rather lackluster. Brokerages are divided in their forecast going forward.
So, what are brokerages saying after the Q4 results?
Now looking at the perspective from concerns around slowing deal conversion to optimism driven by valuations and buyback benefits, the views are far from uniform.
Let’s take a look at how four major brokerages are reading Wipro’s post growth trajectory and what it could mean going ahead.
| Brokerage | Rating | Target Price | Upside/Downside |
| Nuvama | Buy | Rs 255 | +21% |
| Nomura | Buy | Rs 250 | +19% |
| Motilal Oswal | Neutral | Rs 215 | +2% |
| Jefferies | Underperform | Rs 180 | -14% |
Motilal Oswal on Wipro: Neutral view amid weak growth visibility
Motilal Oswal has maintained a ‘Neutral’ rating on Wipro with a target price of Rs 215. This indicates limited upside potential of 2% from the current market price. According to the brokerage report, the key monitorable remains the conversion of deal wins into revenue, which has been slower than expected.
Growth outlook hinges on deal execution: As per the brokerage report, “We believe that broad-based growth across verticals and a stable conversion of deal TCV to revenue will be key to a constructive view. We reiterate our Neutral rating on Wipro with a target of Rs 215, implying 14 times FY28 Estimated Earnings Per Share.”
The brokerage highlighted that despite a healthy deal pipeline, execution delays are affecting near-term growth.
It noted that the company’s Q1FY27 guidance of -2% to 0% QoQ constant currency suggests another soft quarter ahead.
It further added, “We believe the key drag remains Americas 2, led by a client-specific issue and delayed ramp-ups. While management expects normalization from 2Q, we think near-term visibility remains limited due to ramp-up delays and seasonality.”
Margins and vertical trends remain a concern: Motilal Oswal also flagged concerns on margins and uneven recovery across segments. As per the report, “Margins could be under pressure in the near term owing to investments and deal ramp-ups.”
The brokerage expects margin pressure due to wage hikes, acquisition-related costs, and investments in artificial intelligence (AI) platforms.
On vertical performance, it noted that Banking, Financial Services and Insurance (BFSI) and healthcare segments remain weak, while technology and communications are showing relatively better traction.
Jefferies on Wipro: Underperform rating on weak earnings and guidance
Global brokerage Jefferies has taken a cautious stance, maintaining an ‘Underperform’ rating with a target price of Rs 180, indicating downside of 14% from the current market price.
Earnings miss driven by broad-based weakness: According to the brokerage report, Wipro’s Q4 performance came in below expectations across key parameters. It stated, “Wipro’s Mar-26 revenues +0.2% QoQcc, margins flat QoQ, and PAT down 2% YoY missed estimates.”
The brokerage pointed out that weakness was visible across multiple business segments. It added, “Revenue pressures were mainly in BFSI verticals, Americas region, and the top client.”
Jefferies also highlighted that healthcare and other discretionary spending segments saw softness.
Weak guidance and slowing deal momentum: Jefferies raised concerns about the company’s forward outlook. As per the report, “Wipro’s Q1 growth guidance of 0% to -2% QoQ constant currency includes recent deals and acquisitions and is weaker than expected and the key disappointment.”
The brokerage further explained, “While Q1 revenue growth will benefit from contribution from recently closed acquisitions (0.8% QoQcc), delay in deal ramp-ups and client specific challenges has prompted a softer-than-expected growth guidance.”
It also flagged a slowdown in deal momentum, noting that bookings declined year-on-year, particularly in large deals. “Wipro’s total bookings in 4Q declined by 14% YoYcc, driven by a 18% YoY decline in large deal bookings,” the report said.
On profitability, Jefferies observed that margins remained stable but were supported by cost offsets. It added that reversal of provisions and lower depreciation helped cushion the impact of higher employee costs.
Nomura on Wipro: Buy call backed by valuation and buyback support
Nomura has maintained a ‘Buy’ rating on Wipro with a target price of Rs 250. This translates to an upside of 19% from the current price.
Buyback improves earnings visibility: According to the brokerage report, the buyback is a key positive, as it reduces the share count and supports earnings per share (EPS). The brokerage noted, “While we marginally lower our FY27F revenue growth assumption, we raise our FY27-28F EPS by ~1-2% due to the buyback.”
Nomura also highlighted that the company’s deal pipeline remains healthy, with continued traction in areas such as vendor consolidation and cost optimisation.
Growth to remain moderate, execution critical: Nomura’s report also noted near-term challenges. It expects headwinds from wage hikes and deal ramp-up costs to impact margins in the upcoming quarter.
The brokerage added, “We think the timely ramp-up of these deals is critical for Wipro to improve its growth rates.”
It also noted that deal wins remain strong but conversion into revenue remains the key monitorable. While it expects gradual improvement over the medium term, near-term growth is likely to remain modest.
Nuvama on Wipro: Positive stance on valuation despite weak start
Nuvama has maintained a ‘Buy’ rating with a target price of Rs 255, indicating a 21% upside potential.
Weak near-term outlook, but upgrades in estimates: According to the brokerage report, Wipro is expected to begin FY27 on a weak note due to soft guidance and recent performance trends. It stated, “Wipro is likely to start FY27 on a weak note after -1.6% CC YoY decline in FY26…Maintain ‘Buy’.”
At the same time, it has revised its estimates upward. “We upgrade our FY27E/28E estimates (+6.8%/+5.0%) on lower share count (due to buyback) and higher USDINR assumption,” the report said.
Margins stable, but near-term pressure likely: Nuvama highlighted that margins are likely to remain within a range, although short-term pressures persist. It noted, “Q1FY27 margins are likely to be impacted by the two-month wage hike, ramp-up of large deals and continued investments in capabilities and AI platforms.”
However, the brokerage added that management aims to maintain margin stability over the medium term through operational efficiencies.
Conclusion
Motilal Oswal and Jefferies remain cautious due to weak growth visibility, execution challenges, and pressure across key verticals. On the other hand, Nomura and Nuvama see value emerging from the buyback and current valuations.
Disclaimer: This article provides an analysis of brokerage viewpoints and specific price targets for Wipro following its Q4FY26 results. These perspectives are for informational purposes only and do not constitute a recommendation to buy, sell, or hold any security. Investors should consult with a SEBI-registered financial advisor to assess how market volatility and specific stock risks align with their personal portfolios before making any investment decisions.
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