Wipro down 9% as fall in Q3 profit, muted guidance keep brokerages cautious

Wipro Q3 review: Analysts said the performance was mixed, with margins beating expectations even as revenue growth stayed weak

Wipro shares slipped 9.4 per cent in trade, hitting an intraday low of ₹241.75 before closing at ₹246, down 7.95 per cent for the day. In comparison, the BSE Sensex fell 0.39 per cent to 83,246.

 

Brokerages were split after the information technology (IT) major released its third-quarter (October–December/Q3) 2025–26 (FY26) results on Friday. Analysts said the performance was mixed, with margins beating expectations.

 

Most brokerages noted that Wipro’s fourth-quarter (January–March/Q4) guidance of 0–2 per cent quarter-on-quarter (Q-o-Q) constant currency (CC) growth fell short of expectations, signalling continued demand softness, fewer working days, and delays in deal ramp-ups.

 

 

Wipro reported a consolidated net profit of ₹3,145 crore in Q3FY26, down 3.5 per cent Q-o-Q from ₹3,262.4 crore. On a year-on-year (Y-o-Y) basis, profit fell 6.5 per cent from ₹3,366.7 crore. The decline was triggered by the implementation of the new labour codes.

 

Revenue from operations stood at ₹23,555.8 crore, up 3.7 per cent Q-o-Q from ₹22,697.3 crore in the second quarter (July-September/Q2). On a Y-o-Y basis, revenue rose 5.5 per cent from ₹22,318.8 crore in Q3 of 2024-25. The IT services operating margin for Q3FY26 was 17.6 per cent, up 0.9 percentage point (pp) Q-o-Q and 0.1 pp Y-o-Y.

 

Brokerage reactions

 

Nomura Research said Wipro’s Q4FY26 guidance of 0–2 per cent CC Q-o-Q growth fell short of expectations. The brokerage lowered its FY26 through 2027-28 (FY28) earnings per share estimates by 2–3 per cent and cut its target price from ₹300 to ₹290.

 

Emkay Research observed a healthy deal activity, with total deal intake around $3.3 billion, including $900 million in large deals, translating into a book-to-bill ratio of 1.3x. Management guided for flat to 2 per cent CC Q-o-Q revenue growth in Q4, which Emkay said was below expectations, considering fewer working days, two months of incremental contribution from Harman Digital Transformation Solutions (DTS), and delays in ramp-up of some large deals.

 

Wipro aims to maintain margins in the 17–17.5 per cent range despite dilution from the Harman acquisition and upfront investments in large deals. Emkay tweaked its FY26–FY28 earnings estimates by –1 per cent to 0.3 per cent to reflect Q3 performance and margin dynamics. It maintains a ‘reduce’ rating while raising its target price to ₹270 from ₹250.

 

Elara Capital flagged concerns about Wipro’s growth sustainability and margin pressures. It said total contract value has moderated from peaks seen a few quarters ago and that some earlier large deals are facing delays in ramp-up, which could weigh on revenue in the coming quarters.

 

Elara also noted that Harman DTS has a lower margin profile than Wipro’s core business, suggesting current margins may not be sustainable and could moderate over time. It highlighted the Q4FY26 guidance of 0–2 per cent CC Q-o-Q growth as evidence of muted growth visibility. The brokerage has a ‘sell’ rating and raised its target price to ₹220 from ₹210.

 

Motilal Oswal Financial Services expects Q4FY26 revenue to grow 7.6 per cent Y-o-Y, while adjusted earnings before interest and tax and net profit decline 0.8 per cent and 8.1 per cent Y-o-Y, respectively. The brokerage said broad-based growth across verticals and stable conversion of deal value into revenue will be critical for a constructive view. It has a ‘neutral’ rating with a target price of ₹275.