Wipro share: Q1 deal bookings fall, organic revenue growth guidance weak; target prices

Wipro's June quarter results disappointed analysts, who said the IT major continued to face top line headwinds. They highlighted weak Q2 revenue guidance of minus 1.5 per cent to 0.5 per cent sequentially in constant currency (CC) terms and noted that June-quarter deal wins also came in below estimates. The targets on the stock post Q1 results suggests limited upside potential.

On Friday, Wipro shares fell 2.67 per cent to hit a low of Rs 173.05 apiece on BSE. Wipro's growth engine remains challenged, well-below the peer average, with no near-term respite or acceleration visible, said HDFC Institutional Equities, as it cut its earnings estimates by 5 per cent and lowered its target multiple to 14 times to arrive at a target of Rs 195.

At the current valuation, Choice said the risk-reward remains unfavourable for Wipro, as it cut its target to Rs 170 from Rs 185. Wipro shares fell 1.6 per cent to Rs 174.95 apiece. 

"Weak performance of BFSI, Consumer and Energy may continue in FY27, straining revenue growth. We now build in 1 per cent dollar revenue decline for both FY27/FY28 compared with flat growth factored in earlier. Margins may be strained due to weak revenues as well as increase in costs," said Elara Securites. This brokerage pared its target for Wipro to Rs 160 from Rs 180 earlier.

ICICI Securities said the Q2 guidance implied 1.3 per cent organic growth at the midpoint, as per its estimate, for Q2FY27, implying a decline as the management factored in continued macro uncertainty and geopolitical instability. 

"Deal bookings also declined on a YoY basis as some deal closures slipped to Q2. IT services margin was 16 per cent, down 100 bps QoQ, led by headwinds from annual salary increases, the ramp-up of large deals, and ongoing AI-related investments. Wipro’s revenue growth has been lagging large-cap IT peers, suggesting weak execution," ICICI Securities said as it suggested 'Reduce' and a target of Rs 153 on the stock.

Axis Securities said unfavourable macro conditions, increasing competitive intensity and higher AI-led investments, may lead to uneven profitability in the coming quarters. "Therefore, we maintain our HOLD rating on the stock, valuing the company at 13 times March 2028E EPS, with a target price of Rs 190/share, implying an upside of 7 per cent from the CMP," it said.