When Wipro released its second‑quarter results, the headline was a modest beat: revenue held steady on a quarter‑over‑quarter constant‑currency basis while earnings before interest and tax (EBIT) margin nudged up by 50 basis points. For investors accustomed to the high‑growth narrative that once defined India’s IT sector, the numbers read more like a cautious footnote than a headline.
The company posted total revenue of ₹24,753 crore, essentially unchanged from the prior quarter when measured in constant currency. Yet the EBIT margin rose to 16.5 percent, a 50‑basis‑point improvement that lifted EBIT to ₹3,986 crore and net profit to ₹3,200 crore. The modest margin expansion reflects tighter cost control amid a backdrop of flat top‑line growth.
Behind the headline figures, the health of Wipro’s deal pipeline showed more strain. Dollar‑denominated revenue contracted for the second straight quarter, underscoring the impact of a weaker rupee and softer demand from overseas clients. By contrast, peers such as TCS and HCLTech reported September‑quarter TCV of ₹505 million and ₹628.9 million respectively, highlighting the relative slowdown at Wipro.
Systematix also nudged its earnings estimates for FY27E, FY28E and FY29E upward by 0.
Systematix, one of the three clean‑source analysts covering the stock, kept its Hold rating but lifted its target price to ₹175. The new target reflects a valuation of 12 times the projected earnings per share for the September 2028 fiscal year, a modest upgrade from prior assumptions. Systematix also nudged its earnings estimates for FY27E, FY28E and FY29E upward by 0.2 to 0.8 percent, citing the recent performance, an expected rebound in Q4 FY27, gradual margin recovery and revised USD/INR assumptions.
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Despite the target‑price bump, the broader sell‑side consensus remained critical. Citi maintained a Sell rating with a target of ₹145, while Jefferies kept an Underperform stance and a target of ₹155. Both brokerages highlighted weak growth momentum and the erosion of large‑deal wins as key concerns, suggesting that the stock may stay range‑bound in the near term.
Looking ahead, Wipro guided for sequential organic revenue growth of ‑1.5 percent to +0.5 percent in constant currency for Q3, reflecting seasonal headwinds, client‑specific challenges and ongoing healthcare sector pressure. The firm’s FY27E constant‑currency revenue outlook sits at a ‑0.5 percent change year‑over‑year. Management reiterated its medium‑term margin goal of a 17 to 17.5 percent operating margin band, signaling confidence that the modest 50‑basis‑point lift in Q2 can be built upon.
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At current market prices, Wipro trades at 13 times FY27E earnings per share and 12 times for both FY28E and FY29E, representing a 19 percent discount to the average one‑year‑forward price‑to‑earnings multiple of its larger peers. Incremental trailing‑12‑month revenue added ₹32 million in the June quarter and ₹95 million in the September quarter, modest contributions that barely offset the broader slowdown.
The picture that emerges from Wipro’s Q2 filing is one of steady, if unremarkable, performance against a backdrop of shrinking new‑deal pipelines and cautious analyst sentiment. While margin improvements and modest earnings upgrades offer a glimmer of optimism, the bearish ratings from Citi and Jefferies, coupled with flat revenue and a dip in large‑deal wins, suggest that investors will continue to watch the December quarter closely for signs of genuine momentum. Until then, the stock is likely to remain a cautious play in an otherwise resilient Indian IT landscape.