Wipro Limited
Wipro Limited is a prominent global information technology services and consulting firm, dedicated to delivering innovative digital transformation solutions. With comprehensive expertise in consulting, design, engineering, and operations, Wipro empowers clients to achieve ambitious goals and build sustainable, future-ready businesses.
The company’s core services, which contribute over 90% of its revenue, include digital strategy, IT and technology consulting, application development, system integration, infrastructure services, analytics, business process outsourcing, R&D, and software/hardware design.
A significant 97.7% of Wipro’s revenue comes from exports. Its clientele spans various industries worldwide, including selective engagements with government sectors in specific markets.
| Recommendation by Broking Firms (Updated on 21th July 2025) | ||
| Issuing Company | Rating | Target Price |
| Antique Stock Broking | Hold | 285 |
| Kotak Institutional Equities | Sell | 240 |
| Motilal Oswal Financial Services | Sell | 230 |
| HDFC Securities | Reduce | 250 |
| Phillip Capital | Neutral | 240 |
| J M Financial | Buy | 320 |
| Axis Research | Hold | 275 |
| Average Target Price | 263 | |
Reports are attached at the bottom of page
1. Demand Environment & Client Behavior
- The quarter started with significant macroeconomic uncertainty, keeping demand subdued.
- Clients focused on cost take-outs and vendor consolidation rather than discretionary spending.
- Increased interest in AI, data, and modernization programs, with several moving into scaled production.
- Discretionary spending remains weak but stable, with opportunities in AI and modernization.
- Tariff impacts have affected manufacturing (auto, industrial), retail, and CPG sectors.
- Clients are prioritizing engineering productivity, cloud modernization, and automation.
2. Growth Outlook
- Q1 FY26 IT services revenue declined 2% QoQ in CC terms, within guidance.
- Guidance for Q2 FY26 revenue is -1% to +1% QoQ in CC terms.
- H2 FY26 expected to see better growth than H1, aided by large deal ramp-ups.
- Healthy pipeline provides visibility for recovery in the second half.
3. Bookings & Deal Wins
- USD 5 billion in total bookings in Q1 FY26, up 51% YoY.
- USD 2.7 billion in large deal bookings, up 131% YoY.
- 16 large deals won, including 2 mega deals and one with mega potential.
- Growth driven by vendor consolidation, AI-led transformation, and modernization initiatives.
- Deals well-distributed between renewals and new engagements.
- Strong deal pipeline across all key verticals and regions.
4. Margins & Profitability
- Q1 FY26 EBIT margin at 17.3%, up 80 bps YoY.
- Margins supported by SG&A savings and operational efficiency.
- Large deals typically have lower initial margins due to upfront investments.
- Margin headwinds expected during ramp-ups, especially in cost-takeout projects.
- Aim to remain within 17–17.5% margin band, using levers like:
- Fixed-price productivity improvements
- G&A optimization through AI
- Talent rotation and pyramid rationalization
5. Vertical-wise Commentary
- BFSI:
- Both mega deals are from US BFSI.
- Weakness observed in Europe.
- Tech & Communications:
- Won a large AI-focused deal.
- Clients accelerating investments in AI.
- Healthcare:
- Continued growth with cost pressures on payers.
- Consumer & Retail:
- B2C tech companies performing well.
- Retail facing cautious discretionary spending.
- Manufacturing & Energy:
- Automotive segment facing challenges.
- Cost takeout remains a focus.
6. AI Strategy
- Wipro is positioning as an “AI-first, AI-everywhere” enterprise.
- Deployed 200+ AI-powered agents across functions like lending, claims, and network ops.
- AI embedded across delivery, software lifecycle, and domain-specific offerings.
- AI-led transformation part of most large deal wins.
Reports