Why Wipro shares tumbled 6% today; Azim Premji, promoters hit hard; target prices

Shares of Wipro Ltd tumbled 6 per cent in Thursday's trade after the IT major reported a mixed set of quarterly results and suggested a Q1 revenue guidance that fell short of the Street expectations. Following this, a handful of brokerage cut their FY26 earnings estimates by 3-4 per cent on Wipro. Its promoters, led by Azim Premji, who accounted for 72.73 per cent stake in the IT major as on March 31, 2025, got hit hard. 

Wipro fell 6.18 per cent to hit a low of Rs 232.20 on BSE. With this, the IT stock has fallen 22 per cent in 2025 against 2.31 per cent drop in the BSE Sensex. Aziz Premji owned 43,11,56,714 shares, or 4.12 per cent stake, directly in Wipro. The notional value of his stake fell Rs 586 crore to Rs 10,092 crore today compared with Rs 10,679 crore on Wednesday. 
 
Foreign brokerage Nomura said Wipro’s revenue of $2,597 million, down 0.8 per cent QoQ was below the consensus estimate of nil growth. All verticals except for energy, manufacturing and resources declined, it said. 

That said, IT EBIT margin at 17.5 per cent was flat QoQ and ahead of consensus estimate of 17.4 per cent.

"We lower our FY26-27F EPS by 2-4 per cent mainly on weaker revenue and margin outlook. We lower our target to Rs 280 (set at 21 times FY27F EPS) against Rs 300 (set at 22x FY27F EPS) earlier to factor in macro risks," Nomura said.

The Wipro management guided for (3.5 per cent) to (1.5 per cent) QoQ revenue degrowth for Q1FY26. Centrum Broking said the demand environment stayed uncertain, with clients taking a cautious approach to discretionary spending and large transformation programs. Centrum Broking gave a 'Reduce' rating on Wipro and suggested a revised target price of Rs 250  compared with Rs 291 earlier, valuing the stock at a PE of 18 times on estimated March 2027 EPS.

"Wipro’s weak Q1FY26 guidance, driven by elevated levels of macro uncertainty due to tariffs, makes it difficult for it to report positive growth in FY26 – thus derailing its turnaround thesis. We are trimming FY26/27 EPS on lower growth expectations. We now value Wipro at 20 times FY27 PE. Downgrade to ‘Hold’ with a target of Rs 260 (earlier Rs 300)," Nuvama said.

In overnight trading, Wipro ADRs fell 3.19 per cent to $2.730 on NYSE. In afterhours, they fell another 0.37 per cent.

MOFSL expects a 1.9 per cent YoY CC revenue decline in FY26, with operating margins at 17.2 per cent. It cut its FY26/FY27 EPS estimates by 4 per cent to account for weak 1QFY26 guidance and sustained demand softness in key verticals and regions. 

"We reiterate our Sell rating on Wipro with a target of Rs 215, implying 17 times FY27 EPS," the brokerage said.