Shares of Wipro Ltd cracked over 6 per cent on April 17 after the IT major posted a subdued Q4 performance and guided for a sequential revenue fall in Q1FY26. The stock slipped to Rs 234 intraday on the NSE, following sharp downgrades by brokerages citing macro headwinds and demand weakness.
Muted guidance rattles Street, Q1 outlook weak
Wipro expects IT services revenue between $2,505 million and $2,557 million in Q1FY26, indicating a sequential fall of 1.5–3.5 per cent in constant currency terms. Management cited macro uncertainty driven by global tariffs, which has led to paused large transformation deals and reduced discretionary spending across verticals like consumer and manufacturing.
Brokerages hit the brakes: Downgrades across the board
Nuvama Institutional Equities downgraded Wipro to ‘hold’ from ‘buy’ and slashed the target price to Rs 260 from Rs 300. It flagged concerns around the FY26 growth outlook, warning that continued weakness may derail the company’s turnaround narrative.
“The weak Q1 guidance amid global trade concerns dims the hope for a meaningful rebound. At current valuations, upside appears capped,” Nuvama said.
Choice Broking was more bearish, downgrading the stock to ‘reduce’ and cutting its target to Rs 252. The brokerage cited macro-sensitive client behaviour and said growth in FY26 hinges on Wipro’s ability to leverage its AI and consulting capabilities.
Global peers stay cautious
Nomura reduced its price target to Rs 280 from Rs 300, maintaining a ‘buy’ call but factoring in tariff-driven risks. Meanwhile, Bernstein stuck to its ‘underperform’ view, with a steep downside target of Rs 200, saying the Q4 numbers missed expectations and offered no near-term catalysts.
While Wipro expects deal ramp-ups in H2FY26, analysts remain cautious. With global uncertainty at the forefront, the Street is likely to remain watchful of any signs of pickup in discretionary IT spending before turning bullish again on the stock.
