Wipro shares rose after Q2 results as revenue grows 9% year on year

Wipro shares rose as much as 2.3% to ₹178 on the BSE on October 16 after the IT company reported 9.1% year on year revenue growth for the second quarter of FY27. However, net profit declined 1.9%, while its December quarter revenue outlook remained weak.

Brokerages have different views on Wipro's growth prospects, deal pipeline and profit margins.

Wipro Q2 results: Key numbers

Financial metric	Q2 FY27	Year on year change
Revenue	₹24,752.7 crore	Up 9.1%
Net profit	₹3,201 crore	Down 1.9%
IT services revenue	$2.61 billion	Down 0.1% quarter on quarter
IT services operating margin	16.5%	Up 0.5 percentage points
Share price high	₹178	Up 2.3%

Wipro's revenue increased 1.1% quarter on quarter. Its profit performance remained under pressure despite higher revenue.

What is Wipro's Q3 revenue outlook?

Wipro expects revenue in the third quarter of FY27 to change by between a 1.5% decline and 0.5% growth sequentially in constant currency terms.

The company signed nine large deals during Q2. However, some expected deal signings were delayed by paperwork and pushed into the December quarter.

Management expects these deals to close and has pointed to a strong pipeline for Q3.

What are Nomura, Goldman Sachs and Emkay saying?

Brokerages differ in their assessment of Wipro's future growth, deal wins and valuation.

Brokerage	View reported	Target price	Main reason
Nomura	Buy	₹200	Revenue slightly exceeded estimates, with delayed deals expected to close
Goldman Sachs	Sell	Not stated in the supplied report	Lower deal wins and limited revenue visibility
Emkay	Reduce	₹170	Weak order intake and subdued performance in some business segments

These are the respective brokerages' views, not a consensus forecast.

Nomura on Wipro

Nomura raised its target price to ₹200 after Wipro's revenue slightly exceeded its estimates. It expects large deal closures to support future growth.

The brokerage forecasts dollar revenue growth of negative 0.5% in FY27 and 1.7% in FY28. It also expects EBIT margins of 16.4% to 17% across these years.

Goldman Sachs on Wipro

Goldman Sachs maintained its Sell rating despite the quarterly performance exceeding its expectations on revenue growth and margins.

It cited a 26% year on year decline in trailing 12 month deal wins, raising concerns about future revenue growth. The brokerage identified the appointment of an external CEO as a potential factor that could change investor perceptions.

Emkay on Wipro

Emkay retained its Reduce rating and ₹170 target price. It highlighted weak order intake and subdued performance in the healthcare, technology and communications segments.

However, Wipro's IT services operating margin improved by 0.5 percentage points to 16.5% during the quarter.

What should investors watch next?

Wipro's performance will depend on whether delayed deals close, order intake improves and revenue growth strengthens. Its ability to maintain margins will also remain important.

The next quarter's results should provide more clarity on demand, deal conversion and progress towards the company's margin goals.