Wipro shares climbed almost 5% in morning trade on the BSE on Friday, 16 October, a day after the company reported its September quarter (Q2FY26) results. Wipro share price opened at ₹170.35 against its previous close of ₹173.70 and jumped 4.72% to hit an intraday high of ₹181.90. At this price, the stock has gained 15%.
Wipro Q2 results
Wipro’s Q2FY27 net profit declined 1.9% year-on-year (YoY) to ₹3,200 crore, while revenue from operations was ₹24,752.7 crore, up 9% from ₹22,697.3 crore in the year-ago quarter.
Revenue from the IT services segment was ₹24,667 crore, up 1% YoY.
Wipro said it expects revenue from the IT services business segment to be in the range of USD 2,571 million to USD 2,625 million in Q3 FY27, translating to a sequential guidance of (-)1.5 per cent to (+)0.5 per cent in constant currency terms.
Should you buy the stock?
Brokerage firm Choice Equity Broking has a “reduce” view on the stock with a target price of ₹160, citing Wipro’s Q2FY27 performance remained subdued, with management guiding for Q3FY27 growth of -1.5% to +0.5% QoQ in CC, reflecting seasonal furloughs and fewer working days.
According to Choice Broking, delayed deal signing is expected to provide a revenue tailwind into Q3 and Q4, while the demand environment remains largely unchanged.
“Clients are increasingly prioritising AI-led productivity and efficiency, creating opportunities for higher-value transformation. Wipro is scaling up investments across AI data centres, AI foundry services, physical AI, AI devices and design-to-manufacturing, broadening its position across the AI value chain,” Choice Broking noted.
“We see improving deal conversion and monetisation of AI investments as key catalysts for a gradual growth recovery, though execution and margin delivery remain critical given near-term investment intensity. At 12 times average FY28 and 29 EPS, we arrive at a target price of ₹160 and assign ‘reduce’, implying limited valuation re-rating until growth momentum improves,” said Choice.
Systematix Shares and Stocks (India) has a “hold” view on the stock with a target price of ₹175. The brokerage firm said while deal conversions and ramp-ups could support a Q4 recovery, the absence of a clear organic growth catalyst underpins our FY27E CC revenue forecast of -0.5%.
“Wipro’s turnaround remains constrained by weaker pockets within its portfolio, subdued demand and geopolitical headwinds,” said Systematix.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
