Shares of Wipro fell nearly 6% to ₹233.50 on Wednesday morning, reacting sharply to the company’s subdued Q1 FY26 guidance and muted Q4 FY25 performance. The stock opened lower and touched a day’s low of ₹233.05, slipping from the previous close of ₹247.65. Wipro’s market capitalization now stands at ₹2.45 lakh crore.
Weak Q1 FY26 Outlook Pressures Sentiment
Wipro expects revenue from its IT Services business segment to be in the range of $2,505 million to $2,557 million, translating to a 1.5% to 3.5% sequential decline in constant currency terms. The company cited macro uncertainty and cautious discretionary spending by clients as key reasons for the weak forecast.
Q4 FY25 Financial Highlights:
Despite the soft guidance, Wipro posted a slight improvement in profitability:
- Revenue: ₹22,445.3 crore, up 0.7% QoQ
- EBIT: ₹3,927 crore, up 0.7% QoQ
- EBIT Margin: Flat at 17.5%
- Net Profit: ₹3,588 crore, up from ₹3,367 crore in Q3
- Operating Cash Flow (FY25): ~$2 billion, 128.2% of net income
Management Commentary
CEO Srini Pallia highlighted two mega deal wins and higher large deal bookings in FY25 but acknowledged client hesitancy amid global economic challenges. CFO Aparna Iyer emphasized consistent margin expansion and reiterated the company’s focus on execution and disciplined spending.
Brokerage Response
Global brokerages such as Bernstein and Morgan Stanley have raised concerns over Wipro’s execution and growth outlook. Both retained cautious ratings, citing Q1 guidance falling below street expectations and risks of negative growth continuing in FY26.
Stock Snapshot
- Current Price: ₹233.50
- Day Range: ₹233.05 – ₹237.10
- 52-Week Range: ₹208.50 – ₹323.60
- Market Cap: ₹2.45T
- Volume: 10.81M
- P/E Ratio: 19.75
- Dividend Yield: 2.57%
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