The fourth largest Indian software company Wipro’s stock fell to 6 per cent on Thursday in the fourth quarter of the fourth quarter of FY 2025, the fourth largest Indian software company Wipro in terms of market capitalization due to market capitalization due to market capitalization. However, the stock had a slight recovery and at the end of the day it fell at Rs 236.9, falling 4.3 percent. Brokers have reduced their income estimates by 3 to 6 per cent for FY 2026 and FY 2027. The reason for this is the reduction in estimates and short -term approaches for the company and software sector for the first quarter of FY 2026.
On the revenue front, the company recorded a $ 2.6 billion mark in terms of stable currency, which is 0.8 per cent lower on a quarterly basis while the market was expecting a stable performance. Revenue growth has been around the company’s own -1 to 1 per cent estimate. All verticals except energy, manufacturing and resources declined. Healthcare led to the highest weakness of -3.1 percent on a quarterly basis.
Antique Research reported that the revenue growth of Wipro is weaker than its large competitors, as its desirement portfolio has declined more. Brokerage has now estimated a 3 percent decline in revenue of the financial year 2026 after the weak estimate for the first quarter was expected to be a flat growth earlier. This will be the third consecutive year when Wipro’s revenue may decline.
After a change in estimate, Brokerage analyst Vikas Ahuja has reduced the company’s evaluation multiple to 20 times (first 21 times) which is in line with its five -year average. He has given a ‘hold’ rating for the stock and has reduced his income estimates by 3 to 5 percent for the financial year 2026/27. Keeping this in mind, the price target has also been reduced from Rs 300 to Rs 275.
The other disappointment is dull with the upcoming estimates. For the first quarter of FY 2026, the company is working with a decline of -3.5 percent to -3.5 percent for the first quarter, which is much lower than the market expectations. The market kept it within the range of +1 percent to +1 percent. The company indicated that customers on both sides of the Atlantic are refraining from decisions due to the direct and indirect impact of the American tariff and this situation is being seen more in the consumer and manufacturing sectors.
Kavaljeet Saluja of Kotak Institutional Equities believes that in addition to postponing the decision, Wipro is losing wallet participation in Europe. This weakness will continue in the first half of FY 2026. Brokerage believes the Wipro is delicate in terms of recession conditions as its desirement services, BFSI (Capco) and Retail (Rising) consulting acquisition, is more associated with seller consolidation. Kotak Equities have rated the stock ‘Sell’. It has also reduced Wipro’s revenue and income estimate of 3-4 per cent for FY 2026/27. Keeping in view the margin outlook and weak revenue figures/estimates, Nomura Research has reduced the income estimate of FY 2026/27 by 2-4 per cent.
First Published – April 17, 2025 | 10:19 PM IST
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