Wipro share price gains 4% post Q1 results. Dividend announcement: Should you buy or sell the stock?
The Bengaluru-based company posted a consolidated net profit of ₹ 3,336 crore in Q1FY26, representing a 10% YoY increase. though on a sequential basis the Wipro net profit declined 7%.
Its constant currency revenue fell both sequentially and year-on-year, coming in at $2,590 million, down 2% sequentially and 2.3% YoY, but beating expectations. The IT segment's revenue was $2,587.4 million, a 0.3% decrease from the previous quarter and 1.5% year-on-year.
The Q1 performance came in line with or slightly higher than analysts estimates. The deal wins also remained strong, which enthused analysts, though some remain watchful on execution.
JM Financial Institutional Securities said that WPRO's 1Q performance met expectations. With margins now within WPRO's goal range of 17-17.5%, the company's focus has shifted strongly toward growth. as per JMFL
A TCV of $5 billion at a book-to-bill ratio of 1.9x is the highest among peer groups, providing compelling evidence. The company secured two large deals for more than $500 million in the first quarter, following a 500 million pound contract in the fourth. WPRO's competitive positioning and better win rates are highlighted by these multi-vendor engagements, which are generally overlooked as per JMFL.
JMFL has raised FY26 and FY27 estimated constant currency revenues but lowered margin estimates slightly. Though EPS neutral, improving growth prospects should be reflect in better multiples, as per JMFL, who has reiterated BUY ratings on the stocks with a revised target price of ₹ 320 (from ₹ 310 earlier)
Motilal Oswal Financial Services model a 1.3% year-on-year constant currency revenue decline for FY26, factoring in a soft start (1Q services revenue was down 2.0% sequentially in constant currency), muted Q2 guidance, and a gradual recovery in the second half as large deal ramp-ups begin to reflect in revenue. While strong deal TCV and early signs of stabilization in Europe prompt a slight upward revision to our FY26 and FY27 estimates (by 2%), they see limited room for margin expansion from current levels.
Motilal Oswal Financial Services said that further improvement in execution and sustained conversion of deal TCV to revenue will be key for a constructive view
The target price of MOFSL for Wipro Share price stands at ₹ 230
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