Synopsis : Wipro shares soared over 4% despite muted Q1 results, driven by strong deal wins that lifted investor sentiment. Analysts are watching if the momentum can sustain in a challenging macro environment.
Wipro’s share price surged over 4% to an intra-day high of Rs 271.90 on the National Stock Exchange, emerging as the top gainer in both the Nifty 50 and Nifty IT indices. This rally comes even as the company reported a 7% sequential decline in consolidated net profit at Rs 3,336 crore in Q1FY26, alongside a drop in constant currency revenue by 2% QoQ to $2,590 million.
What turned sentiment around for investors was Wipro’s strong deal wins and a healthy actual contract value (ACV) pipeline, which management believes will support revenue growth in the coming quarters. Despite a muted near-term outlook, this performance signals potential green shoots for the IT major, with investors betting on its ability to convert large deal ramp-ups into consistent revenue.
Brokerages have started acknowledging these positives. Nuvama noted that Wipro’s Q1 performance beat low expectations, backed by robust deal momentum. The brokerage has increased its FY26 and FY27 earnings estimates by 4.3% and 1.6%, respectively, and has raised the target price slightly to Rs 270 while maintaining a ‘Hold’ rating. It believes that with superior cost management, Wipro can maintain margins in the 17–17.5% band, even as it invests in ramping up large deals.
Motilal Oswal, on the other hand, remains cautious, retaining a ‘Sell’ rating with a target price of Rs 230. While it expects a 1.3% YoY constant currency revenue decline for FY26, the brokerage acknowledges strong deal total contract value (TCV) and early signs of stabilisation in Europe, leading to a slight upward revision of its earnings estimates for FY26 and FY27.
Despite today’s rally, Wipro’s stock has seen a rough ride, declining 0.7% in the past five sessions, 1% over the past month, and 14% over the last six months, erasing nearly 10% of investor wealth over the past year. However, the latest surge reflects renewed investor optimism that strong deal wins, coupled with disciplined cost management, could help Wipro navigate the ongoing demand challenges and revive its growth trajectory.
As global IT demand remains uncertain and clients continue to hold back discretionary spending, the street will closely watch Wipro’s execution on its large deals and the pace at which these wins translate into revenue and margin stability, determining whether this rally can transform into a sustained comeback for the IT major.
Disclaimer : This article is for informational purposes only and does not constitute investment advice. Please consult your financial advisor before making any investment decisions.
