Should You Sell? Wipro Shares Hit 4% Lower Circuit as Analysts Warn of 'Negative Growth' Ahead
Wipro shares faced intense selling pressure on Friday morning, dropping nearly 4% as investors prioritized a weak revenue forecast over a massive capital return plan. While the IT major announced a ₹15,000 crore buyback at a significant premium, its guidance of up to 2% revenue contraction for the June quarter triggered cautious "Sell" and "Underperform" ratings from major global brokerages.
Shares of IT services giant Wipro Ltd plummeted in mid-morning trade on Friday, as the market reacted to a disappointing growth outlook that shadowed a multi-billion-dollar buyback announcement. Despite a resilient margin performance, the company’s forecast of potential revenue de-growth in the coming quarter sent investors scrambling for the exit.
As of 11:50 AM IST, Wipro was trading at ₹204.50 on NSE, down by ₹5.76 or 2.74%. Earlier in the session, the stock hit an intraday low of ₹202.50, which was nearly a 4% drop from Thursday’s close of ₹210.26.
Buyback vs. Reality
Wipro’s Board approved a share buyback of up to ₹15,000 crore at a price of ₹250 per share, hence a 19% premium. However, this failed to cheer the Street against a backdrop of bleak forward-looking statements.
For the Q1 FY27 (June 2026) quarter, Wipro guided for IT services revenue in the range of $2,597 million to $2,651 million. This translates to sequential guidance of (-) 2.0% to 0.0% in constant currency terms. New CEO Srini Pallia said that this "softness" is due to a specific client issue in the Americas and delayed ramp-ups. He also noted that FY26 now marks the third consecutive year of negative growth for the firm.
Analysts Flag 'Complacency' and 'Leakage'
Top global investment firms issued cautious notes, with several cutting their target prices:
- CLSA: Issued a "Sell" rating, citing "more negatives than positives." The brokerage flagged continued revenue leakage and slowing momentum in the critical BFSI vertical.
- Morgan Stanley: Noted that both Q4 organic growth and Q1 guidance fell short of expectations. It expects Wipro to continue trading at a valuation discount relative to peers like TCS and Infosys.
- Goldman Sachs: Flagged a "fourth consecutive year of revenue decline" and cut earnings estimates. It pointed to a sharper-than-expected contraction in the core business.
- JPMorgan: Described the quarter as a “mixed bag." It warned that the 17.3% margin was supported by one-off provision write-backs, which may not be sustainable.
Q4 Financials
Wipro reported a 1.9% year-on-year drop in consolidated net profit to ₹3,502 crore for the March quarter. While gross revenue rose 7.7% YoY to ₹24,236 crore, it was a "miss" compared to street estimates. The company’s voluntary attrition rate stood at 13.8%, showing signs of stabilization, but the lack of revenue momentum remains the primary concern for institutional investors.
Wipro's decline weighed heavily on the Nifty IT Index, which was trading 0.55% lower at the same hour. While the broader Sensex and Nifty remained in the green due to gains in the Auto and FMCG sectors, Wipro emerged as the top laggard among the Nifty 50 pack.
Published By : Shourya Jha
Published On: 17 April 2026 at 12:16 IST