India's Wipro slips as weak forecast deepens growth slowdown fears (updated)

Wipro

17/07/2026 05:23

Adds analyst comment in paragraphs 5-6 and 13; updates shares
By Kashish Tandon

    July 17 (Reuters) - 
    Shares of India's Wipro WIPR.NS fell as much as 2.4% on Friday after the IT services firm's quarterly earnings miss and sluggish outlook indicated the company may be lagging its peers in an already challenging demand environment. 
  
The stock was trading nearly 1% lower at 176.11 rupees, as of 03:04 p.m. IST, making it the second-biggest laggard on the Nifty IT index .NIFTYIT and among the top five losers on the benchmark Nifty 50 .NSEI.     
The Bengaluru-based software services exporter missed analysts' estimates for June quarter results and forecast September-quarter revenue between a 1.5% decline and a 0.5% growth in constant-currency terms.
The results from India's fourth-largest software-services exporter underscore persistent challenges for the country's $315 billion IT services sector, including subdued client spending, prolonged decision-making cycles and AI-driven efficiency measures.
"Wipro has always had a growth problem," said Sushovan Nayak, lead analyst at Anand Rathi Institutional Equities.
"Even now, if you adjust for acquisitions, organic growth was about negative 2% quarter-on-quarter. Growth has been elusive."
Fourteen brokerages cut their price targets on the stock after the results, according to LSEG-compiled data, dragging its median price target to 187 rupees from 210 rupees last month. 
While rivals Tata Consultancy Services TCS.NS, HCLTech HCLT.NS and Tech Mahindra TEML.NS have shown greater resilience, analysts said Wipro continues to struggle to convert large contract wins into revenue growth. 
Total deal wins for Wipro fell to $3.37 billion from $5 billion a year earlier.
Investec called the period "another quarter of disappointment" and warned that growth remained constrained by delayed client decisions and slow execution of large deals. 
Ambit Capital and BOB Capital Markets said fiscal 2027 could mark Wipro's fourth consecutive year of organic revenue decline, with BOB Capital Markets adding that execution remains Wipro's biggest challenge.
Meanwhile, smaller rival Tech Mahindra TEML.NS, which also reported its June-quarter results on Thursday and beat revenue estimates, jumped 4.8% as analysts said strong deal wins and margin improvement could make it one of the fastest-growing companies among its peers.
"Tech Mahindra's performance was due to strong execution and a focus on telecom deals, while Wipro remained in the degrowth phase, with weak execution, delayed ramp ups, wage hikes reflected in its growth, deal TCV and margins," Nayak said.
Wipro shares have fallen over 33% so far this year, while Tech Mahindra has dropped nearly 1%. The Nifty IT index is down nearly 23% year-to-date.

       
  

 (Reporting by Kashish Tandon in Bengaluru; Editing by Sherry Jacob-Phillips and Sonia Cheema)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))