Wipro rises 2% on securing 10-yr deal of GBP 500 million from Phoenix Group

Wipro share price: IT major Wipro shares were buzzing in trade on Thursday, March 27, 2025, as the scrip rose up to 2.37 per cent to hit an intraday high of ₹273.60 per share. 

 

The northward move in Wipro share price came after it won a £500 million, 10-year strategic deal with Phoenix Group, the UK's largest long-term savings and retirement business. 

 

“The project is designed to deliver life and pension business administration for the ReAssure business and accelerate Phoenix Group’s operational transformation,” Wipro said, in a statement.

 

“This strategic engagement with Phoenix Group reflects our commitment to leveraging our deep transformation expertise around process and technology - including cloud, data, and AI to drive increased operational agility for clients in the financial services sector. We are thrilled to partner with Phoenix Group at this critical juncture of their transformation journey and support them as they look to navigate an ever-evolving digital landscape,” said Nagendra Bandaru, managing partner and global head of technology services at Wipro.

 

Under the terms of the agreement, Wipro’s current FCA-regulated entity, Wipro Financial Outsourcing Services Limited (WFOSL), will provide a full range of life and pension administration services to Phoenix Group’s ReAssure customers. The services will cover policy administration, claims processing, customer support, data management and reporting, compliance and regulatory assistance, as well as platform technology solutions.

 

Andy Briggs, CEO, Phoenix Group said,  “Wipro's expertise in technology and service makes them ideally placed to help us deliver outstanding service and value for our ReAssure customers on their journey to and through retirement. We are delighted to have them join us as one of our ecosystem of strategic partners for this phase of our transformation journey.”

 

Analysts at Kotak Institutional Equities said that the deal is net-new and would start to ramp up gradually from Q3FY26E. The deal is notable since it marks Wipro’s entry into an account that has been a stronghold for TCS. 

 

“This is the second mega deal over the past four quarters for Wipro and highlights the improvement in GTM and large deal focus under the current leadership. Wipro has had multiple false starts in the past and would need more of such wins to lend credibility to turnaround efforts,” analysts at Kotak Institutional Equities said.

 

The brokerage, however, maintained its ‘Sell’ rating on the stock, with a target price of ₹265.

 

“Wipro faces multiple challenges, including structural factors such as loss of share in a few key accounts, based on media reports and our channel checks. We note that there has been some improvement in performance over the past couple of quarters, but that has been driven by a few outliers while larger verticals continue to be under pressure. We are yet to include the impact of the mega deal in our estimates. We expect to narrow the growth differential versus peers, but underperformance is likely to continue in FY2026E. We maintain our cautious view as turnaround needs to get multiple elements right and is challenging. We value Wipro at 18X FY2027E (unchanged) earnings, leading to an unchanged FV of Rs265. Retain Sell,” the brokerage explained.

 

At 11:25 AM, Wipro shares were trading 1.48 per cent higher at ₹271.20. In comparison, BSe Sensex was trading 0.48 per cent higher at 77,662.03 levels.