Jefferies has maintained its underperform rating on Wipro with a target price of ₹220 per share following Q2FY26 results that were broadly in line with expectations, after adjusting for a one-time ₹1.2 billion charge. The brokerage said the company’s healthy deal bookings and improving execution offer some comfort, but margin pressures and subdued earnings growth limit near-term upside.
For the quarter, Wipro’s consolidated revenue grew 1.8% year-on-year to ₹22,705 crore, while EBIT margin stood at 17.2% on an adjusted basis. The company guided for 3QFY26 revenue growth of –0.5% to +1.5% in constant currency, indicating a moderate growth outlook.
Jefferies expects margins to remain under pressure due to deal ramps, integration costs from recent acquisitions, and ongoing wage adjustments. The brokerage forecasts only about 3% EPS CAGR over FY26–28, combined with a 3% dividend yield, which it believes makes the stock’s risk-reward profile unattractive compared to peers.
Disclaimer: The views and recommendations above are those of Jefferies. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.