Financials & valuation: Wipro

研报英文原文证据摘录

Financials & valuation: Wipro

17 July 2026

Equities

IT Services Wipro (WPRO IN)

Hold: 1Q27 – Another weak quarter India

◆ Wipro’s recovery expectations continue to fade as it reported MAINTAIN HOLD

another weak quarter with weaker margins and slower deal wins

TARGET PRICE (INR) PREVIOUS TARGET (INR)

◆ 2Q revenue guidance was weak as well; -1% at the mid-point in 192.00 200.00

organic CC. Management shared that demand remains soft

SHARE PRICE (INR) UPSIDE/DOWNSIDE

◆ AI overhang and Wipro’s underperformance offer limited reason to

177.74 +8.0%

buy into undemanding valuations. Maintain Hold and INR192 TP (as of 16 Jul 2026)

Another weak quarter: Wipro reported a weak quarter and guided for a much weaker MARKET DATA

Market cap (INRm) 3,625,355 Free float 30%

2Q27 as well. Reported revenues for 1Q were down 2% q-o-q in organic CC terms and Market cap (USDm) 37,627 BBG WPRO IN

revenues are likely to decline further in 2Q by c1% q-o-q (at mid-point, in organic CC 3m ADTV (USDm) 58 RIC WIPR.BO

terms). Management explained that the demand environment for IT services remains

FINANCIALS AND RATIOS (INR)

soft and is mostly for cost optimisation and vendor consolidation deals with savings from Year to 03/2026a 03/2027e 03/2028e 03/2029e

such projects being later reinvested for AI-led transformation projects. On the back of HSBC EPS 12.80 12.99 13.68 14.13

HSBC EPS (prev) 12.80 13.40 14.24 15.00

recent deal wins, management now carries a positive outlook for FS and EMR verticals Change (%) 0.0 -3.0 -3.9 -5.8

for the upcoming quarters, however, was not committal on the company overall turning Consensus EPS 12.73 13.54 14.01 14.47

PE (x) 13.9 13.7 13.0 12.6

to growth in 2H. Present valuations do not appear demanding for Wipro but on a relative Dividend yield (%) 6.2 1.7 6.2 6.4