Wipro’s Q1FY26 net profit rose 11% YoY to ₹3,330 Cr. ADRs surged 5%, Indian shares rallied ~4%. Brokerages remain cautious amid margin pressure. Get full analysis, outlook, and FAQs here.
📈 Q1 FY26 Key Highlights
- Consolidated Net Profit: ₹3,330 Cr (+11% YoY vs ₹3,003 Cr a year ago) NDTV Profit+11The Economic Times+11The Economic Times+11Moneycontrol+1The Economic Times+1
- Standalone Net Profit: ₹3,336 Cr, down ~7% QoQ owing to seasonality & one-off adjustments NDTV Profit
- Revenue: ₹22,134 Cr, marginal 0.8% YoY rise, -1.6% QoQ NDTV Profit
- Operating Margin: 17.3%, slightly down QoQ but up YoY The Economic Times+9The Economic Times+9NDTV Profit+9
- Deal Wins: TCV at $5B, 51% QoQ increase; two mega deals bolster H2 growth outlook NDTV Profit+2The Economic Times+2Moneycontrol+2
ADRs & Stock Market Reaction
- U.S. ADRs (WIT) rallied over 5%, hitting $3.12 following strong Q1 results Reuters+3Investing.com India+3The Economic Times+3
- Indian shares spiked ~4.3% intraday, settling around ₹271.9 — outperforming Nifty IT index +0.3% NDTV Profit
🧠 Broker Views: Cautious Optimism
- Jefferies: Underperform maintained; price target ₹235, citing modest growth and limited margin expansion (3% EPS CAGR FY26–28) NDTV Profit+4NDTV Profit+4Moneycontrol+4
- Morgan Stanley: Equal-weight; target raised to ₹285, backed by large deal wins and H2 recovery visibility NDTV Profit+2NDTV Profit+2Moneycontrol+2
- Macquarie: Outperform, ₹290 target; highlighted strong execution on mega deals outweighing vertical-specific weaknesses NDTV Profit
- Nuvama: Hold; warns of weak Q1 FY26 guidance, target lowered to ₹260 Moneycontrol+2INDmoney+2Moneycontrol+2
- Choice Broking: Reduce; kept ₹252 target, citing macro risks and tariff uncertainties INDmoney+3NDTV Profit+3Moneycontrol+3
🧐 What It All Means
- Deal Momentum Building
$5 B TCV and mega deals are positive signs for top-line recovery in H2 FY26 Moneycontrol+2The Economic Times+2NDTV Profit+2 - Margin Showdown
Operating margin dipped QoQ but remains stable—future improvement depends on cost efficiencies and execution. - Cautious Broker Sentiment
Ratings range from Hold to Outperform; average price target ₹260–290 (6–15% upside), but risks remain amid macro uncertainty.
📌 Investment Strategies
| Investor Type | Strategy |
|---|---|
| Short-Term Traders | Ride momentum, but trim profits near ₹285–290 resistance |
| Long-Term Investors | Accumulate on dips around ₹250–260 for digital & deal play |
🔮 Watchpoints Ahead
- Q2 Guidance: Will H2 recovery momentum strengthen?
- Deal Conversion: Timely execution of mega deals crucial for revenue traction.
- Margin Upside Potential: Cost control and pricing leverage key for margin expansion.
- Macro Risks: Global IT spending environment and currency fluctuations.
❓ FAQs
Q1. Why ADRs jumped more than Indian shares?
ADRs reflect global investor sentiment; foreign investors rewarded strong Q1 results with a sharper rally (~5%) .
Q2. Is Wipro undervalued now?
Valuation multiples are compressed due to growth concerns. If H2 growth plays out, 15%+ upside is possible.
Q3. Should I buy now?
For short-term gains, trading around resistance makes sense. Long-term investors could start accumulating near ₹250–260.
Q4. Which brokerage calls are bearish?
Jefferies remains cautious with ₹235 target; Choice and Nuvama suggest Hold/Reduce stance Moneycontrol+3Moneycontrol+3ZeeBiz+3.
Q5. What triggers will drive the next leg up?
Deal conversions in H2, margin improvement, and stable global IT spend are key catalysts.
Disclaimer
This is informational content, not financial advice. Consult a SEBI-registered advisor before making investment decisions.
🏁 Final Take
Wipro’s Q1 beat expectations with profit growth and strong deal wins, but brokerage caution around margins and macro factors persists. ADR optimism and H2 deal momentum offer potential upside. Traders may capitalize on short-term rally, while long-term investors should watch for H2 execution and buy dips near ₹250–260.
