Wipro shares drop 4% after mixed Q2 results; should you sell or hold?

Wipro's share price fell after its net profit was up 1.15 per cent compared to the same quarter last year

Shares of Wipro Ltd. fell over 4 per cent on Friday after the technology major reported mixed earnings, with revenue and margins in line with estimates, while profit fell short. 

 

The IT firm's stock fell as much as 4.6 per cent during the day to ₹242.1 per share, the biggest intraday fall since April 4 this year. The Wipro stock pared losses to trade 4.5 per cent lower at ₹242 apiece, compared to a 0.07 per cent advance in Nifty 50 as of 9:34 AM. 

 

Shares of the company snapped a three-day winning streak. The counter has fallen 19 per cent this year, compared to an 8.3 per cent advance in the benchmark Nifty 50. Wipro has a total market capitalisation of ₹2.54 trillion. 

 

Wipro Q2 results 

The IT major's net profit for the quarter stood at ₹3,246 crore, up 1.15 per cent compared to ₹3,208.8 crore in the same quarter last year. On a sequential basis, profit declined 2.5 per cent.

 

The company’s revenue from operations rose to ₹22,697.3 crore, up 1.7 per cent year-on-year (Y-o-Y) and nearly 2.5 per cent sequentially. Revenues from the IT services segment were $2,604.3 million, aided by a few large deals closed during the quarter.

 

According to Bloomberg estimates, Wipro’s Q2 revenue beat expectations, but net profit fell short. In Q2, Wipro's large deal bookings stood at $2.9 billion, marking a 90.5 per cent Y-o-Y rise, while total deal bookings reached $4.7 billion. 

 

For the October–December quarter, India’s fourth-largest IT services firm expects revenue from its IT services segment to range between $2,591 million and $2,644 million, a sequential growth of minus 0.5 per cent to 1.5 per cent.  ALSO READ | Infosys down 1% post Q2 results, chart hints at limited fall; here's why

Analysts on Wipro 

Motilal Oswal said Wipro's revenue and margin performance were in line with expectations, but revenue acceleration remains elusive despite sustained deal momentum. Execution will be key to second-half delivery, with the banking, financial services and insurance (BFSI) segment and Europe showing early signs of stability.

 

The brokerage noted that large-deal ramp-ups and pricing pressure in vendor consolidation programs could weigh on near-term margins, leaving limited upside potential from current levels. It expects flat Y-o-Y constant-currency revenue growth for FY26, factoring in a soft start, muted guidance for the next two quarters, and a gradual recovery in the second half.

 

Motilal Oswal reiterated its 'Sell' rating on Wipro with a target price of ₹200 per share. 

 

Nomura said Wipro’s growth visibility is improving, and the second quarter of FY26 was a beat across most parameters. The brokerage expects a timely ramp-up of large deals and a strong pipeline to drive an improvement in revenue growth from the second half of FY26 onwards.

 

It forecasts Y-o-Y dollar revenue growth of -0.8 per cent in FY26 and +2.9 per cent in FY27, and has raised its Ebit margin forecast for FY26 by 70 basis points. The brokerage has a 'Buy' rating with a target of ₹280 apiece.