Shares of Wipro are under immense pressure in trade on Monday, trading with cuts of more than 9% on the back of third-quarter earnings for the financial year ending March 2026. The stock is trading at Rs 242.5, accounting for a correction of around 9.1% compared to Friday's closing price of Rs 267.45.
This comes after Wipro reported a bottom-line of Rs 3,119 crore, compared to Rs 3,262 crore in the preceding quarter. The company's revenue went up 3.8% to Rs 23,555.8 crore from Rs 22,697.3 crore in the second quarter.
The earnings before interest and tax also declined 5.1% to Rs 3,491 crore from Rs 3,681 crore, and the margin contracted to 14.8% versus 16.2% sequentially.
Analysts reacting to Wipro's third-quarter earnings noted that the IT major's guidance was weaker than expected. Nomura, while maintaining a 'buy' call, has cut the target price from Rs 300 to Rs 290. Nomura added that guidance is weaker than expected for Q4. Wipro is the only IT major that offers quarterly guidance.
Bank of America, meanwhile, maintained underperform on Wipro, noting that while revenues were in line and margins were steady, a higher quantum of net new wins is still a work in progress.
Jefferies, too, remained cautious on Wipro, adding that the Harman acquisition supports growth, but delayed ramp-ups are playing spoilsport.
Wipro Q3 Results (Consolidated, QoQ)
- Revenue up 3.8% at Rs 23,556 crore versus Rs 22,697 crore (Bloomberg estimate: Rs 22,697 crore)
- Profit down 4.4% at Rs 3,119 crore versus Rs 3,246 crore (Estimate: Rs 3,354 crore)
- EBIT down 5.1% at Rs 3,491 crore versus Rs 3,681 crore (Estimate: Rs 3,727 crore)
- Margin at 14.8% versus 16.2% (Estimate: 16.4%)
- Note: New Labour Code impact of Rs 303 crore in Q3
Also Read: Wipro Q3 Result Review: Brokerages Remain Mixed; UBS Hikes Target Price
Watch LIVE TV, Get Stock Market Updates, Top Business, IPO and Latest News on NDTV Profit.