The Wipro share price cracked 4.56% to an intra-day low of Rs 242.22 on the National Stock Exchange. The fall in the stock price came a day after it posted its quarterly earnings for Q2 FY26.
Jefferies on Wipro: More downside likely
Healthy deal bookings point to an incrementally better outlook, evident from its Q3 FY26 revenue growth guidance of -0.5% to +1.5% QoQ in constant currency, though margins may be under pressure due to deal ramps and recent acquisition, said Jefferies.
Over FY26-FY28, they expect 3% EPS growth annually along with 3% dividend yields, which makes risk-reward unattractive. However, the brokerage maintained its ‘Underperform’ tag on the stock, with a target price of Rs 220, projecting another 13% drop from current levels. One of the factors for the derating, Jefferies stated, is that limited earnings growth requires higher dividend yields (over 5%) to make Wipro’s stock an attractive investment, but with a dividend yield of 3%, the stock merits a cut in rating.
Wipro Q2FY26
Wipro posted a 1.15% increase in consolidated profit after tax at Rs 3,246 crore for Q2 FY26. The company has reported a net profit of Rs 3,209 crore in the same quarter a year ago. The consolidated revenue from operations of Wipro rose slightly by 2% to Rs 22,697 crore in Q2 FY26 from Rs 22,302 crore in the same quarter a year ago.
Wipro stated that it expects revenue from the company’s IT Services business segment to be in the range of $2,591 million to $2,644 million. This translates to sequential guidance of (-)0.5% to (+)1.5% in constant currency terms, it stated.
In Q2, the company won large deals worth $2.85 billion, which was more than $2.67 billion it won in the last quarter. The company’s total deal wins stood at $4.67 billion, a fall of 6.7% sequentially from $4.97 billion, but up 31% YoY basis on a constant currency basis.
“Our revenue momentum is strengthening, with Europe and APMEA (Asia Pacific, Middle East, and Africa) returning to growth, and our operating margins holding steady within the narrow band. Bookings surpassed $9.5 billion for H1-FY26,” said Srini Pallia, CEO and Managing Director, Wipro.
Wipro stock performance
The share price of Wipro has risen 1% in the last five trading sessions. The stock has declined 1.6% over the last one month. However, it has risen 5.5% in the past six months. Wipro’s stock price has fallen 5.5% over the last one year.
