Weak guidance implies continued underperformance and yet another year of revenue decline for Wipro in FY26. We cut our EPS estimates by 5%/4% for FY26/27E led by a cut in revenue estimates and currency (INR/USD) rate.
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ICICI Securities Report
Wipro Ltd.'s Q1 FY26 revenue guidance of -3.5% to -1.5% QoQ constant currency is the weakest ever (except Covid and GFC quarters), implying heightened uncertainty in client decision making due to global tariff war.
Guidance factors in a pause in large transformation projects, ramp downs and delays in decision making. Large deal wins were strong (+17% YoY), but total bookings were down 4% YoY due to softness in smaller discretionary deals (down 13.4% YoY) in FY25.
Weak guidance implies continued underperformance and yet another year of revenue decline for Wipro in FY26. We cut our EPS estimates by 5%/4% for FY26/27E led by a cut in revenue estimates and currency (INR/USD) rate.
We continue to value Wipro at 18x from Q4 FY26 to Q3 FY27 earnings per share of Rs 13 to arrive at a revised target price of Rs 230. Maintain Reduce.
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