Wipro tumbles down

Wipro shares tumbled nearly 7% in Monday’s morning trade to around Rs. 249, extending their recent underperformance, as investors reacted to weaker-than-expected near-term guidance issued alongside the company’s Q3 FY26 results late Friday. The sell-off reflects investor concerns despite a relatively steady operational performance in the fiscal third quarter.

For the quarter ended December 31, 2025, Wipro reported a consolidated net profit of Rs. 3,119 crore, down about 7% year-on-year, even as revenue rose to Rs. 23,556 crore, indicating sequential growth but falling short of stronger Street expectations; the board also declared an interim dividend of Rs. 6 per share, underscoring ongoing shareholder returns.

At the heart of the market’s negative reaction was Wipro’s guidance for the March quarter, where the company projected IT services revenue of $2.635 billion to $2.688 billion, translating to flat to 2% sequential growth in constant currency terms, a cautious outlook that was below many analysts’ expectations and drew comparisons with stronger guidance from peers.

Deal bookings also painted a mixed picture; total new contract value was $3.33 billion in Q3, among the lowest in six quarters, and large deal wins were muted compared with prior periods, raising questions about near-term revenue momentum even as operating margins showed modest expansion and cash generation remained robust.

Investor sentiment appears driven by a combination of factors: (i) a profit decline despite revenue growth, (ii) subdued guidance that suggests continued softness in demand or project ramp-ups, and (iii) relatively weaker deal activity versus peers in the Indian IT space, contributing to a negative repricing of Wipro’s stock.

Broader analysis indicates structural headwinds such as cautious corporate IT spend, ongoing execution risks across new contracts, and higher provisions related to labour-code impacts that have weighed on earnings quality, even as the company highlights disciplined margins and strategic investments in AI-led services; this mix of positives and caution has led to divergent brokerage views and heightened volatility in the share price