Wipro shares plunge over 4% after Q2 results miss Street estimates

Shares of Wipro fell 4.4% to an intraday low of Rs 242.65 on the BSE in early trade on Friday, October 17, following the company’s Q2 FY26 financial results, which missed Street estimates. The tier-1 IT services firm reported a 1.2% year-on-year (YoY) rise in consolidated net profit to Rs 3,246 crore, compared with Rs 3,209 crore in the same quarter last year.

However, the figure missed Street expectations, which had pegged profit after tax (PAT) at Rs 3,279 crore.

Following the results, the company’s American Depository Receipts (ADRs) closed 2.25% lower at $2.7, though after-hours trading showed a 1.12% gain.

Revenue from operations rose to Rs 22,697 crore in Q2FY26, up 1.8% from Rs 22,302 crore in the year-ago quarter. Sequentially, revenue grew 2.5% over the April-June quarter, when it stood at Rs 22,135 crore. Meanwhile, net profit declined 2.5% quarter-on-quarter (QoQ) from Rs 3,330 crore in Q1FY26.

Wipro’s guidance for Q3 expects revenue from its IT Services segment to range between $2,591 million and $2,644 million, translating to a sequential revenue guidance of -0.5% to +1.5% in constant currency terms. Notably, this forecast excludes any contribution from the company’s recent acquisition of Harman Digital Transformation Solutions.

In dollar terms, the company’s gross revenue stood at $2,556.6 million. Revenue from the IT Services segment was $2,604.3 million, reflecting a 0.7% QoQ increase but a 2.1% YoY decline. On a non-GAAP basis, constant currency IT Services revenue grew 0.3% QoQ but fell 2.6% YoY.

After the Q2 results, Motilal Oswal maintained a “Sell” rating on Wipro with a target price of Rs 200.

“The company's IT Services revenue stood at $2.6 billion, marking a 0.3% QoQ growth in constant currency (CC), in line with estimates. Order intake during the quarter was $4.7 billion, down 5.7% QoQ, while large-deal total contract value (TCV) was $2.8 billion, up 7% QoQ. EBIT margin came in at 16.7%, slightly below the estimated 17.0%. Net profit (PAT) was Rs 3,246 crore, reflecting a 1.2% YoY rise but a 2.5% decline QoQ. For the first half of FY26, revenue grew 1.2% YoY, EBIT rose 1.0%, and PAT increased 5.3%,” noted Motilal Oswal.

The outlook for the second half of FY26 projects a 6.0% YoY increase in revenue, while EBIT and PAT are expected to decline by 1.0% and 5.3% YoY, respectively. The brokerage noted that broad-based vertical growth and stable TCV-to-revenue conversion remain key factors, while reiterating its “Sell” recommendation.

Also read: Reliance Industries Q2 results preview: O2C, Jio to power 11% profit growth; retail seen lagging

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