Wipro delivered a modest beat, with flat QoQ CC revenue and a 50bps expansion in Ebit margin to 16.5%. Total bookings declined 23% QoQ to $2.6 billion, lagging peers, as contract signings slipped to Q3 FY27. Revenue guidance of -1.5% to +0.5% QoQ CC for Q3 remains muted, reflecting healthcare pressures, client-specific challenges and seasonality. While deal conversions and ramp-ups could support a Q4 recovery, the absence of a clear organic growth catalyst underpins Systematix's FY27E constant currency revenue forecast of -0.5%.
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Systematix Report
Following Wipro Ltd.'s September-qurater results, the brokerage firm Systematix maintains Hold rating with a revised target price of Rs 175, rolling forward its valuation to 12 times Sep' 28E earnings per share.
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Wipro delivered a modest beat, with flat QoQ CC revenue and a 50bps expansion in Ebit margin to 16.5%. Total bookings declined 23% QoQ to $2.6 billion, lagging peers, as contract signings slipped to Q3 FY27.
Revenue guidance of -1.5% to +0.5% QoQ CC for Q3 remains muted, reflecting healthcare pressures, client-specific challenges and seasonality.
While deal conversions and ramp-ups could support a Q4 recovery, the absence of a clear organic growth catalyst underpins Systematix's FY27E constant currency revenue forecast of -0.5%.
Wipro's turnaround remains constrained by weaker pockets within its portfolio, subdued demand and geopolitical headwinds.
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Valuation and view
Systematix has raised its FY27E/FY28E/FY29E earnings estimates by 0.2–0.8%, factoring in recent performance, expected positive growth in Q4 FY27, gradual margin recovery and revised USD/INR assumptions.
At current market price, Wipro trades at 13x/12x/12x FY27E/FY28E/FY29E EPS, a 19% discount to large peers' average oneyear forward P/E.
The brokerage expect growth to lag peers over the medium term, reflecting continued weakness in large accounts. Delayed deal conversion, client- and verticalspecific challenges, and insourcing risks warrant a discounted valuation.
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