Shares of IT major Wipro Ltd. have fallen to a fresh 52-week low, trading at Rs 166.30 in the current session. This latest decline contributes to a substantial 38% drop in the company's stock price since the start of the year, bringing its market capitalization down to Rs 1.64 lakh crore.
Q1 Earnings Miss and Weak Outlook Drive Sentiment
The significant downturn in Wipro's stock performance is largely attributed to a disappointing Q1 earnings report and a cautious outlook for the second quarter. The company announced a Q2 revenue forecast ranging from a 1.5% decline to 0.5% growth, falling short of analysts' expectations for a 1% fall to 1% increase. Furthermore, total deal wins for Wipro in Q1 dropped to $3.37 billion, a notable decrease from $5 billion reported in the same period last year.
In terms of financial performance, Wipro's gross revenue for Q1 stood at Rs 24,480 crore, representing a 1.0% quarter-on-quarter increase and a 10.6% year-on-year rise. However, the crucial IT services segment revenue saw a 1.4% sequential dip to $2,614.5 million, though it increased by 1% year-on-year. Profit for the quarter also slipped by 4.3% to Rs 3,352 crore compared to Rs 3,502 crore in the preceding March 2026 quarter.
Analyst Ratings and Price Targets
Brokerage firms have largely maintained a cautious stance on Wipro. Choice Equities, for instance, has issued a 'Reduce' call on the stock, setting a target price of Rs 170. Their report highlighted Wipro's Compound Quarterly Growth Rate (CQGR) in BFSI revenues at a mere 0.6%, ranking it as the second lowest among major IT companies, only ahead of LTI Mindtree.
JPMorgan has reiterated its 'Underweight' rating for Wipro, assigning a price target of Rs 155 per share. The brokerage firm cited several factors contributing to its bearish outlook, including increasing AI-led pricing pressure, productivity pass-throughs, and an overall subdued net growth environment within the IT services sector.
The stock's Relative Strength Index (RSI) has fallen to 30.7, nearing the oversold zone (below 30), indicating strong bearish momentum. Wipro shares are currently trading below all short-term and long-term moving averages, suggesting a persistent downtrend.