Wipro shares climbed as much as 2.3% to Rs 178 on the BSE on October 16, 2026, after the IT services company reported higher second-quarter revenue but lower net profit. Its outlook for the December quarter remained subdued, leaving brokerages divided over whether improving margins outweighed weak order intake.
Key Takeaways
- Gross revenue rose 9.1% year over year, while net profit declined 1.9%.
- December-quarter guidance ranges from a 1.5% revenue decline to 0.5% growth in constant currency.
- Nomura retained a Buy rating, while Goldman Sachs and Emkay remained cautious.
Table of Contents
- Wipro shares advance despite a mixed earnings picture
- Delayed deals leave December-quarter growth uncertain
- Brokerages differ on margins and order visibility
- Conclusion
Wipro shares advance despite a mixed earnings picture
Wipro’s September-quarter financial results filing confirms that its board approved the audited standalone and consolidated results for the quarter and half year ended September 30, 2026, on October 15. The share-price advance the following morning was an intraday move, not a confirmed closing return.
Gross revenue reached Rs 24,752.7 crore in the second quarter of fiscal 2027, increasing 9.1% from a year earlier and 1.1% from the preceding quarter. Net profit moved in the opposite direction, falling 1.9% year over year to Rs 3,201 crore.
The IT services segment showed a different revenue trend from the group’s rupee-denominated gross revenue. Segment revenue declined 0.1% sequentially to $2.61 billion, while its operating margin improved by 50 basis points to 16.5%. The figures measure different scopes and currencies and should not be treated as equivalent growth measures.
| Item | Details |
|---|---|
| Nomura | Buy retained; target price raised to Rs 200. |
| Goldman Sachs | Sell retained; no target price supplied in the available material. |
| Emkay | Reduce retained; target price of Rs 170, based on 12 times estimated September 2028 EPS. |
Delayed deals leave December-quarter growth uncertain
Wipro expects third-quarter revenue growth of between minus 1.5% and plus 0.5% sequentially in constant currency. That range allows for a further contraction as well as modest growth; it is management guidance rather than an achieved result.
The company signed nine large deals during the September quarter, spanning new business and expansions with existing clients. Management acknowledged that large-deal signings were below expectations because paperwork delays pushed some confirmed orders into the third quarter.
Management remained confident those deals would close and expected a strong pipeline in the December quarter. Wipro also said it expects to return to its target operating-margin range of 17% to 17.5% over time, without specifying a completion date.
Brokerages differ on margins and order visibility
Nomura said quarterly revenue slightly exceeded its estimate, while margins met expectations. It raised its price target and forecast dollar revenue growth of minus 0.5% in FY27 and 1.7% in FY28, indicating that its positive stock view does not depend on an immediate return to strong growth.
Goldman Sachs said revenue growth and margins exceeded its expectations, but highlighted a 26% year-over-year decline in deal wins on a trailing 12-month basis. In its assessment, that left limited visibility on revenue growth, despite a marginal increase in its earnings estimates.
Emkay described operating performance as steady but pointed to weak order intake and subdued healthcare and technology and communications activity. It cut its FY27–FY29 earnings-per-share estimates by 0.4% to 1.3%. The brokerage recommendations and targets are analyst judgments, not company guidance.
Conclusion
The next reporting period to watch is the December quarter, when management expects delayed deals to close. Actual signings and revenue performance against the stated guidance will show whether the stronger margin is accompanied by improving business momentum.
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