synopsis

For Q1 FY26, Wipro expects revenue growth to range between -3.5% to -1.5% in constant currency terms.

Wipro's fiscal fourth-quarter earnings painted a picture of cautious stability amid an uncertain demand environment. The stock fell nearly 6% in early trading on Thursday. 

The IT major reported a net profit of ā‚¹3,570 crore, marking a 26% rise year-on-year (YoY). Revenue stood at ā‚¹22,504 crore, showing only slight growth.

Operating margins held steady at 17.5%, thanks to cost optimisation. 

The real dampener was the management's guidance. For the current quarter, Wipro expects revenue to shrink between 3.5% and 1.5% in constant currency terms, signalling continued weakness in client spending and a temporary pause in a major transformation project.

CEO Srini Pallia stated that Wipro is prioritising five key strategic areas, with a strong emphasis on AI-driven transformation and securing large deals.

In FY25, the company closed 63 major deals ā€” 17 in Q4 alone ā€” amounting to $1.8 billion.

Bernstein maintained its 'Underperform' rating on Wipro with a price target of ā‚¹200, which implies a downside of 19% from its last close.

Data from Stocktwits indicates retail sentiment has turned ā€˜extremely bearish' from ā€˜neutralā€™ a week ago, while message volume has surged to a six-month high. 

Wipro sentiment and message volume on April 17 as of 10:30 am IST. | source: Stocktwits
 

SEBI-registered research analyst Harika Enjamuri said on Stocktwits that if Wipro manages to stay above ā‚¹240 and moves past ā‚¹263, there's potential for a rebound towards the ā‚¹280ā€“290 range.

However, she added that a breakdown below ā‚¹240 could trigger a decline toward ā‚¹220 and even ā‚¹208.65. 

"In essence, while the company's fundamentals reflect stable margins, the stock's direction will largely hinge on its performance around these crucial technical levels," she said.

Another Stocktwits user also highlighted that while Wipro has delivered decent earnings, the market is not buying it. The IT Index remains under pressure, and hence it would be better to stay cautious at this point, he added. 

Wipro is down 22.6% year-to-date (YTD).

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