Wipro shares slide 6% post Q4 results. Should you buy, sell or hold?

Wipro shares slid 6.2% in early trade to their day’s low of Rs 232.15 on the NSE on Thursday, after the IT services major reported a net profit of Rs 3,570 crore for the quarter ended March 2025, up 26% from Rs 2,835 crore in the year-ago period. The figure beat Street estimates of Rs 3,290 crore.

Wipro Q4 Results

Revenue from operations rose 1% year-on-year to Rs 22,504 crore, compared to Rs 22,208 crore in the same quarter last year.

However, IT services segment revenue stood at $2,596.5 million, down 1.2% quarter-on-quarter and 2.3% year-on-year. In constant currency terms, revenue declined 0.8% QoQ and 1.2% YoY. Sequentially, profit after tax grew 6% from Rs 3,354 crore posted in the December quarter.

“We closed FY25 with two mega deal wins, an increase in large deal bookings, and growth in our top accounts. Client satisfaction scores improved, reflecting strong execution and engagement,” said Srini Pallia, CEO and MD of Wipro.

Should you buy, sell, or hold Wipro's stock? Here's what analysts say:

Nuvama

Nuvama downgraded Wipro to ‘Hold’ and slashed its target price to Rs 260 from Rs 300. The brokerage flagged a weak quarter, with IT services revenue falling short of expectations. EBIT margins remained flat at 17.5% QoQ, though improved 110 bps YoY.

Nuvama also pointed to a subdued Q1FY26 revenue guidance of -1.5% to -3.5%, reflecting macro uncertainties from global tariffs. With limited visibility on FY26 growth, the brokerage said Wipro’s turnaround thesis looks challenged. EPS estimates for FY26E and FY27E have been trimmed by 3% and 3.7%, respectively, while valuation has been revised to 20x FY27 PE from 22x.

Choice Broking

Choice Broking also downgraded Wipro to ‘Reduce’, with a target price of Rs 252. The brokerage expects a potential demand recovery later in Q1FY26, particularly if global tariff-related disputes are resolved, allowing clients to take clearer investment decisions. Ramp-up of deals like the Phoenix contract could also aid revenue in the latter part of FY26.

However, a weak start makes full-year positive growth a challenge. Margins are expected to remain under pressure due to a soft revenue environment, pricing constraints from cost takeout deals, and vendor consolidation. Wipro plans to focus on growth and client investments while managing costs through bench optimization, productivity enhancements in fixed-price contracts, and fixed spend rationalisation.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)