The Wipro shares have plummeted 9% after the Q3 announcement. The key IT player posted a 7% year-on-year (YoY) fall in consolidated net profit at Rs 3,119 crore, even as revenue grew 6% to Rs 23,556 crore. The result of this IT firm might have left many investors with mixed signals. A drop in profit has raised concerns around margins and cost pressures, while steady revenue growth suggests demand has not weakened sharply.
Is Wipro a ‘Buy’ or ‘Sell’ now?
The big question now is whether the stock is a ‘Buy’ or ‘Sell’ at current levels- After the earnings announcement, several brokerage firms have revised their earnings on this key information and technology sector stock. Jefferies has downgraded the stock to Underperform, while Nomura and JM Financial signal Buy. Reports from Motilal Oswal and Nuvama are relatively Neutral at this point.
Jefferies on Wipro: ‘Underperform’
Jefferies has reiterated its ‘Underperform’ rating on Wipro, with a target price of Rs 220. This implies a downside risk of 15%. As per the brokerage report, Wipro’s Q3FY26 results were in line after adjusting for one-time charges, but “softer deal bookings and delays in ramp-ups” led to weaker growth guidance.
Jefferies highlighted that large deal bookings fell 9% year-on-year to $0.9 billion, while Q4 growth guidance implies organic growth of “-1.6% to 0.4%,” which it described as a “key negative surprise.”
The brokerage expects earnings per share growth of around “~2% EPS CAGR” over FY26-FY28 and said the current dividend yield is not high enough to offset growth concerns.
Motilal Oswal on Wipro: Neutral stance
Motilal Oswal has maintained a ‘Neutral’ rating on Wipro, with a target price of Rs 267. This indicates a limited upside of 3% from current levels. According to the brokerage report, “Deal ramp-up delays keep near-term growth muted,” and the company’s Q4FY26 guidance of “0-2% QoQ ” suggests a soft exit to the year.
The brokerage noted that organic growth, excluding the Harman Digital Transformation Services acquisition, could be around “-0.5% in Q4,” as large deal ramp-ups have been pushed out.
It also flagged that “revenue visibility will remain limited,” citing fewer working days and delayed execution. Motilal Oswal expects overall revenue growth of just “0.5% YoY in FY26” and believes margin upside may be capped due to wage hikes and acquisition-related dilution.
Nuvama on Wipro: ‘Hold’
Nuvama has retained a “Hold” rating on Wipro with a revised target price of Rs 255. This translates to a downside potential of 3% from the current market price. As per the brokerage report, the company delivered in-line results, but “soft deal-wins” and weak guidance have reduced hopes of a near-term turnaround.
The brokerage pointed out that Q4 guidance of “0–2%” translates into organic growth of “-1.5% to +0.5%,” while a seasonally weak first quarter could further weigh on performance.
Nuvama said growth is likely to remain “tepid in near future,” even though margins have stayed stable. It added that inexpensive valuations may limit downside, but upside catalysts remain limited.
Nomura on Wipro: ‘Buy’
Nomura struck a relatively more positive tone, retaining a ‘Buy’ rating with a target price of Rs 290. This implies an upside potential of 8.6% upside from the current market price.
As per the brokerage report, Wipro’s guidance includes a “approx. 150 bps contribution from Harman acquisition,” while organic growth remains weak due to delayed ramp-ups in banking, financial services and insurance, and high-technology verticals.
Nomura stressed that “timely ramp-up of these deals are critical” for improving growth. On margins, the brokerage noted that Wipro aims to keep profitability in a tight range despite headwinds. It also pointed to a dividend yield of around “ approx. 4%,” which could provide some support to the stock.
JM Financial on Wipro: ‘Buy’
JM Financial has also maintained a ‘Buy’ rating, setting a higher target price of Rs 310. This translates to an upside potential of 15.9%. The brokerage house report noted that Wipro missed top-line expectations due to slower deal execution and weakness in certain verticals. However, margins were better than expected, with IT services margins at “17.6%.”
The brokerage flagged that demand continues to be driven by cost optimisation rather than discretionary spending. It described the quarter as “lacklustre,” noting that strong deal bookings have yet to translate into revenue.
Overall, brokerages highlighted organic growth remained weak for Wipro due to delayed ramp-ups. All eyes are on how the strong deal booking get actually translated into revenue.
Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.