Wipro Q3 Review: Analysts Maintain Ratings As Demand Outlook Positive

Most brokerages maintained their rating on the shares of Wipro Ltd., after the IT firm reported third quarter results that beat market expectations, with margin growth and improving demand commentary. 

Wipro’s growth was mainly driven by execution rigor and continued demand uptick in Capco. The company posted revenue growth in the upper end of the guided range, which stemmed from the pickup in demand environment and deal pipeline, noted IDBI Capital Equity Research. 

The brokerage maintained its ‘hold’ rating on the stock, as it expects the company to perform well in the long run. It values the stock at target price of Rs 299 per share by rolling in FY27. 

Nirmal Bang also reiterated its ‘hold’ rating on Wipro and maintained the valuation multiple of 21.3 times on Dec’26E EPS of 14.4 per share, to get the target price of Rs 306.

“Wipro has delivered decent performance in a seasonally weak quarter. But the caution pertains to sustainability of this growth as energy, manufacturing and resources, plus technology verticals are weak with some early green shoots,” it said. 

Motilal Oswal noted that Wipro’s had a robust quarter with no major overhang on the fourth quarter margin. It reiterated its 'neutral' rating as the current valuation was fair. Its target price of Rs 290 implies 22 times FY27E EPS. 

Growth was particularly strong in the US BFSI and healthcare verticals, driven by a gradual recovery in discretionary spending. The company’s focus on client mining and expanding its consulting business has further strengthened its deal pipeline, especially in the Americas, the brokerage noted. 

“However, challenges remain in certain verticals and geographies. Its 4Q guidance is muted (-1.0% to 1.0% in CC), reflecting regional softness, particularly in Europe and APMEA. Manufacturing and E&U verticals continue to face client-specific headwinds, with no immediate signs of recovery expected,” Motilal Oswal said. 

However, Emkay Global tweaked FY25-27E EPS by 0.5% to 3.1%, factoring in Q3 performance and better payout under the revised capital allocation policy. It maintained 'reduce', with target price of Rs 290 per share at 20 times Dec-26E EPS.

“The management is cautiously optimistic about demand and is seeing discretionary spending coming back gradually. Deal pipeline remains strong, led by cost take-outs and vendor consolidation deals; focus remains on driving deal conversion. Wipro has guided for -1% to 1% CC QoQ growth in Q4, which remains lower than our expectations,” the brokerage noted.