Wipro shares fall 4.65% after Q2 earnings; here is what Jefferies says on results

Shares of the country's fourth largest information technology (IT) company, Wipro, fell as much as 4.65% to hit an intraday low of ₹242 on the National Stock Exchange a day after it reported its second quarter earnings. On the BSE, Wipro shares declined as much as 4.63%.

The Bengaluru-based IT company on Thursday reported net profit of ₹3,246 crore for the second quarter of current financial year, marking an annual increase of 1.17% from ₹3,209 crore in the same period last year.

On a sequential basis, however, Wipro's net profit declined 2.53% from ₹3,330 crore in the previous quarter.

Wipro's revenue from operations rose 2% annually to ₹22,697 crore from ₹22,302 crore in the same period last year.

Wipro expects its revenue from IT services business to be in range of $2,591 million to $2,644 million translating into sequential guidance of (-)0.5% to (+)1.5% in constant currency terms for December quarter.

Wipro reported that its IT services revenue stood at $2,604.3 million for the quarter ended September 2025 (Q2 FY26), reflecting a 0.7% sequential growth but a 2.1% decline year-on-year (YoY). In constant currency terms, revenue rose 0.3% QoQ and fell 2.6% YoY. The company’s IT services operating margin came in at 16.7%, impacted by a provision of ₹116.5 crore related to the bankruptcy of a customer. Excluding this one-time impact, margins were at 17.2%, marking a contraction of 0.1% sequentially and an expansion of 0.4% on a yearly basis.

“Our revenue momentum is strengthening, with Europe and APMEA returning to growth, and our operating margins holding steady within a narrow band. Bookings surpassed $9.5 billion for H1 FY26. Our strategy is clear: remain resilient, adapt to global shifts, and lead with AI,” said Srini Pallia, CEO and Managing Director, Wipro.

The company highlighted that three of its four Strategic Market Units (SMUs) grew sequentially in Q2, indicating a gradual return to a growth trajectory. Large deal bookings in the first half of FY26 have already surpassed the total large deal bookings for the full FY25, highlighting strong deal momentum, Wipro said in a press release.

During the quarter, Wipro secured several significant multi-year engagements across key sectors and geographies. A leading European financial institution chose Wipro for infrastructure modernisation, including centralised cloud migration and data centre consolidation.

Global investment firm Jefferies said that after adjusting for one-time charge of ₹120 crore second quarter earnings were in line with expectations.

Healthy deal bookings point to incrementally better outlook, evident from its third quarter revenue growth guidance of -0.5% to +1.5% QoQ in constant currency terms, Jefferies noted.

Jefferies expects 3% earnings per share (EPS) compounded annual growth rate (CAGR) which along with 3% dividend yields makes risk-reward unattractive.

As of 10:16 am, Wipro shares traded 4.55% lower at ₹242.25, underperforming the NIFTY50 index which was up 0.34%.