Wipro reported consolidated revenue of ₹24,752.7 crore for Q2 FY27, up 9.1% year on year. However, net profit declined 1.4% to approximately ₹3,200.6 crore. Revenue was also down 1.1% sequentially, highlighting the difference between annual growth and the company’s recent operating momentum. <Cite refs={[“turn911232search4″,”turn911232search8”]}/>
| Financial metric | Q2 FY27 |
|---|---|
| Consolidated revenue | ₹24,752.7 crore |
| Revenue growth year on year | 9.1% |
| Net profit | ₹3,200.6 crore |
| Net profit change year on year | -1.4% |
| IT services revenue | $2.61 billion |
| IT services operating margin | 16.5% |
Wipro’s IT services revenue grew only 0.6% year on year in constant currency terms and remained flat sequentially. Constant currency figures exclude the impact of exchange rate movements, helping investors assess underlying business growth.
The operating margin improved to 16.5% from 16% in the previous quarter. This indicates some improvement in efficiency, although the company still faces the challenge of generating stronger revenue growth.
What Are Jefferies and Motilal Oswal Saying?
Brokerages have remained cautious despite the share price rally, reflecting concerns about the company’s growth outlook and weak deal bookings.
Jefferies: Underperform rating, target price ₹155
Jefferies raised its target price for Wipro from ₹150 to ₹155 but retained its Underperform rating. The brokerage acknowledged the revenue performance but continued to flag concerns around the company’s growth outlook and weak deal wins. <Cite refs={[“turn911232search0”]}/>
An Underperform rating suggests that the analyst expects the stock to deliver weaker returns than its benchmark or peers over the relevant period. The higher target price does not necessarily mean the brokerage has turned positive on the stock.
Motilal Oswal: Neutral rating, target price ₹170
Motilal Oswal maintained a Neutral rating with a target price of ₹170. Its assessment highlighted flat sequential constant currency IT services revenue and a sharp decline in deal intake.
The brokerage reported total order intake of $2.6 billion, down 22.9% sequentially in constant currency terms, while large deal total contract value declined 58.6% sequentially to $700 million. It expects growth to remain modest in the second half of FY27. <Cite refs={[“turn911232search6”]}/>
The difference between the two brokerage views is important. While both recognise Wipro’s operating performance, neither rating cited here suggests that investors should assume the recent rally will continue.
Is Wipro’s Share Price Rally Sustainable?
Wipro’s rally may continue if business growth improves, margins remain healthy and delayed contracts begin contributing to revenue. However, the latest results do not yet establish that a sustained recovery is underway.
Factors supporting a recovery
Wipro’s revenue exceeded analyst expectations, while its operating margin improved sequentially. The company also indicated that two delayed large deals could close soon, which may support future business momentum if those contracts are finalised and executed. <Cite refs={[“turn911232news21”]}/>
The broader IT sector may also benefit from increased spending on artificial intelligence, cloud services and digital transformation. Wipro’s ability to convert these areas into profitable contracts will be important.
Risks that could limit further gains
The biggest concern is the weakness in deal bookings. If large contracts are delayed or clients reduce discretionary technology spending, revenue growth may remain subdued.
Wipro’s guidance for Q3 FY27 points to IT services revenue changing between a 1.5% decline and 0.5% growth sequentially in constant currency terms. This cautious outlook suggests that a quick acceleration in business activity cannot be assumed. <Cite refs={[“turn911232search8”]}/>
Competition, pricing pressure and the changing economics of AI-led services could also affect margins and profitability.
What Should Investors Watch Next?
Investors evaluating Wipro shares should focus on business indicators rather than the daily share price alone.
First, monitor whether new deal wins improve in the coming quarters. A stronger pipeline is useful, but contracts must translate into revenue.
Second, track operating margins and management’s commentary on costs. The latest improvement is encouraging, but maintaining it while pursuing growth will be important.
Finally, compare Wipro’s valuation with its earnings outlook and the performance of other large IT companies. A share price rally can reflect improving expectations, but it can also run ahead of actual business recovery.
Conclusion
Wipro shares rose more than 6% on October 16, 2026, following its Q2 FY27 results, despite a year on year decline in net profit. Jefferies retained an Underperform rating with a ₹155 target, while Motilal Oswal maintained Neutral with a ₹170 target.
The rally reflects improving sentiment, but weak deal bookings and cautious revenue guidance remain concerns. Whether the recovery is sustainable will depend on stronger contract wins, consistent margin performance and an improvement in IT services growth over the next few quarters.
Frequently Asked Questions
1. Why did Wipro shares jump over 6% after Q2 results?
Wipro shares rose sharply on October 16, 2026, following its September quarter results. Revenue exceeded expectations, operating margins improved sequentially and management indicated that delayed large deals could close soon. However, the stock’s rally does not remove concerns about weak deal bookings and modest near term revenue guidance.
2. What was Wipro’s Q2 FY27 net profit?
Wipro reported consolidated net profit of approximately ₹3,200.6 crore in Q2 FY27, down 1.4% year on year and 4.5% sequentially. Revenue increased 9.1% year on year to ₹24,752.7 crore. The mixed performance shows why investors should evaluate revenue, profitability and future guidance together.
3. What is Jefferies’ target price for Wipro?
Jefferies raised its target price for Wipro from ₹150 to ₹155 while retaining an Underperform rating. The brokerage remains cautious about the company’s growth prospects and weak deal wins. A higher target price should not be interpreted as a Buy recommendation when the overall rating remains negative.
4. What is Motilal Oswal’s rating for Wipro?
Motilal Oswal maintained a Neutral rating on Wipro with a target price of ₹170. Its analysis highlighted flat sequential IT services revenue in constant currency terms and weaker order intake. The brokerage expects growth to remain modest, making future deal wins and revenue conversion important indicators.
5. What was Wipro’s revenue in Q2 FY27?
Wipro reported consolidated revenue of ₹24,752.7 crore for Q2 FY27, representing 9.1% year on year growth. However, revenue declined 1.1% compared with the previous quarter. Investors should distinguish annual growth from sequential momentum when assessing whether the company’s business is recovering.
6. What is Wipro’s IT services revenue guidance for Q3 FY27?
Wipro guided for IT services revenue to decline between 1.5% and grow 0.5% sequentially in constant currency terms in Q3 FY27. This relatively narrow range indicates a cautious near term outlook. Actual performance will depend on client spending, contract execution and the timing of large deals.
7. Why are Wipro’s deal bookings important?
Deal bookings indicate the value of contracts secured by the company and provide clues about future business activity. Weak bookings can signal slower revenue growth in subsequent quarters, although contract timing varies. Investors should monitor both total order intake and large deal wins alongside actual revenue performance.
8. Is Wipro a good stock to buy after the rally?
A sharp share price increase alone does not establish that Wipro is attractively valued. Investors should assess revenue growth, margins, deal bookings, management guidance and valuation. They should also consider their investment horizon and risk tolerance instead of assuming that the recent rally will continue.
9. What are the major risks for Wipro investors?
Key risks include weak client spending, delayed contracts, lower deal bookings, pricing pressure and competition from other IT services companies. Artificial intelligence could create new revenue opportunities but also change traditional outsourcing models. These factors may influence growth, margins and the stock’s valuation.
10. What should investors watch in Wipro’s next quarterly results?
Investors should track sequential IT services revenue growth, operating margins, large deal wins and management guidance. It will also be important to see whether delayed contracts convert into revenue and whether demand improves across key markets. Consistent improvement in these indicators would provide stronger evidence of a sustainable recovery.
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Jaspreet Singh Arora is the Chief Investment Officer at Equentis, where he heads a seasoned team of equity analysts and turns two decades of market experience into portfolios that consistently beat the benchmark. A go-to voice on cement, building-materials, real-estate, and construction stocks, Jaspreet previously ran research desks at leading brokerages, honing an eye for the metrics that truly move share prices. His plain-spoken analysis helps investors cut through noise and act with conviction. When he’s not deep-diving into earnings calls, you’ll find him unwinding over sports, weekend cricket or a good history podcast.
