Wipro’s share price has surged 4% to an intra-day high of Rs 271.90 per share on the National Stock Exchange. It is the top gainer in the Nifty 50 and Nifty IT Indices. The company reported a decline in net profit and revenue in Q1FY26, but deal wins stole the limelight. Here’s what brokerages are analysing the results-
Nuvama on Wipro: Await signs of macro improvement
Nuvama said that the Bengaluru-based IT company beat Q1 estimates, which were quite low to begin with. However, strong deal wins should support growth in the coming quarters. “We await signs of macro improvement and consistency in performance to turn buyers. We are raising FY26 and FY27 EPS by 4.3% and 1.6% on higher growth expectations,” said Nuvama.
Looking at the result, the brokerage raised the target price slightly to Rs 270 from Rs 260, while maintaining a ‘Hold’ rating.
Management highlighted that actual contract value (ACV) growth is also healthy, which should support revenue growth over the coming quarters. “We moderate our margin expectations as Wipro will need to invest in ramping up large deals. Management has demonstrated superior cost management in the past; hence, we believe Wipro would be able to maintain margins in the 17–17.5% margin band,” added Nuvama.
Motilal Oswal on Wipro: Soft start leads to little room for margin expansion
Motilal Oswal expects a 1.3% YoY CC revenue decline for FY26, factoring in a soft start (1Q services revenue down 2% QoQ CC), muted 2Q guidance, and a gradual recovery in the second half as large deal ramp-ups begin to reflect in revenue.
While strong deal total contract value (TCV) and early signs of stabilisation in Europe prompt a slight upward revision to the brokerage’s estimate of FY26 and FY27 by 2%, each. However, Motilal Oswal sees limited room for margin expansion from current levels.
“Further improvement in execution and sustained conversion of deal TCV to revenue will be key for a constructive view,” said Motilal Oswal.
The brokerage kept its ‘Sell’ rating unchanged on Wipro, with a target price of Rs 230, which implies an EPS of 18x by FY27.
Wipro in Q1 FY26
The IT company reported a consolidated net profit of Rs 3,336 crore in Q1FY26, a decline of 7% QoQ, but a 10% YoY growth. Its constant currency revenue declined both sequentially and YoY, coming in at $2,590 million, down 2% QoQ and 2.3% YoY. The revenue from the IT segment came in at $2,587.4 million, decreased by 0.3% QoQ and 1.5% YoY.
Wipro stock performance
The share price of Wipro has fallen 0.7% in the last five trading sessions. The stock has declined by 1% in the past one month and 14% in the last six months. Wipro’s share price has wiped out almost 10% of investors’ wealth in the past one year.