Sharp Fall in Share Price After Results
Shares of Wipro Ltd witnessed a sharp sell-off on Monday. The stock tumbled nearly 10% during the session. It fell 9.54% to hit an intraday low of Rs 241.75. Investors reacted negatively after the IT major announced its December quarter (Q3 FY26) results over the weekend.
The sharp decline reflected concerns over earnings, guidance, and near-term growth visibility.
Q3 Profit Declines Despite Revenue Growth
For the quarter ended December 31, 2025, Wipro reported a consolidated net profit of Rs 3,119 crore. This marked a 7% decline compared with Rs 3,358 crore in the same quarter last year. The fall in profit disappointed market participants.
However, on the revenue front, the company delivered moderate growth. Revenue from operations rose 3.7% year-on-year to Rs 23,556 crore. In the corresponding quarter of the previous fiscal, revenue stood at Rs 22,697 crore.
Meanwhile, margins remained steady, offering some comfort to analysts.
Interim Dividend Announcement
Alongside the results, Wipro announced an interim dividend of Rs 6 per equity share. Each share carries a face value of Rs 2. The company fixed January 27 as the record date. It plans to pay the dividend on or before February 14.
This move aligns with Wipro’s revised capital allocation policy and focus on shareholder returns.
What Analysts Say on the Stock
According to Kranthi Bathini, Director – Equity Strategy at WealthMills Securities, Wipro’s Q3 performance fell below expectations. However, he highlighted the company’s strong balance sheet and healthy cash position. He advised long-term investors to hold the stock and consider accumulating it at lower levels.
From a technical perspective, Ravi Singh, Chief Research Officer at Mastertrust, sounded cautious. He said the stock looks weak on charts. According to him, Wipro shares could slip towards the Rs 230 level, while Rs 260 may act as near-term resistance.
Weak Q4 Guidance Raises Concerns
Importantly, Wipro’s guidance for the March quarter disappointed analysts. The company guided for 0–2% sequential revenue growth in constant currency terms for Q4. This includes a 150 basis point contribution from the Harman acquisition.
JM Financial described the December quarter results as lacklustre. It noted that strong deal bookings over the last twelve months have not yet translated into revenue. The brokerage cut its EPS estimates by 3–4.5% but maintained its target price, citing attractive valuations and potential capital returns.
Nomura also lowered its earnings estimates for FY26–28 by 2–3%. It cut its target price to Rs 290 from Rs 300. The brokerage attributed weak guidance to fewer working days in Q4 and delayed ramp-ups in BFSI and Hitech deals.
Deal Momentum and Demand Trends
MOFSL said Wipro’s demand remains driven mainly by cost optimisation and vendor consolidation. It noted slower deal-to-revenue conversion and maintained a ‘Neutral’ rating with a target of Rs 275.
Meanwhile, Nirmal Bang highlighted weak deal bookings. Total bookings declined 29% QoQ and 5% YoY. Large deal wins also dropped sharply. As a result, it maintained a ‘Hold’ rating with a target of Rs 296.
Overall Outlook
Overall, analysts remain cautious on Wipro’s near-term growth outlook. While margins and shareholder returns provide support, weak guidance and deal visibility continue to weigh on sentiment. Investors are likely to track deal ramp-ups and demand recovery closely in the coming quarters.
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