Wipro Ltd. emerged as the only major IT stock trading in the red on Thursday after the company's June-quarter earnings fell short of profit expectations and margins came under pressure, dampening investor sentiment despite stable revenue growth.
Shares of the IT major fell as much as 2.36% intraday to Rs 173.55, before trading around Rs 174.32, down nearly 2%, even as several large-cap IT peers traded higher as of 9:25 am. Infosys, Tech Mahindra, TCS gained by over 2%, followed by LTM, HCLTech,and Coforge.
The weakness followed Wipro's first-quarter FY27 earnings, where the company reported a 4.3% sequential decline in consolidated net profit to Rs 3,352 crore, compared with Rs 3,502 crore in the March quarter. The figure also missed Bloomberg consensus estimates of Rs 3,466 crore.
Revenue, however, remained broadly in line with expectations, rising 1% sequentially to Rs 24,479 crore from Rs 24,236 crore.
The bigger concern for investors was profitability. Earnings before interest and taxes (EBIT) fell 8.4% quarter-on-quarter to Rs 3,829 crore, while the EBIT margin narrowed 160 basis points to 15.6% from 17.2% in the previous quarter, reflecting higher costs and continued investment spending.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
