Posted on April 17, 2025, by Niftynews
Wipro share price dropped sharply on April 17, 2025, falling over 6% in intraday trading after the company reported weak Q1 FY26 guidance, prompting a wave of downgrades and reduced price targets from brokerages. This sudden move raised investor concerns over the IT major’s growth prospects in a macroeconomic environment already marred by uncertainty.
📍 Wipro Share Price Update: What Happened?
The Wipro share price plunged to ₹232 in Thursday’s session, as analysts responded negatively to the March quarter (Q4 FY25) results and the muted revenue outlook for the upcoming quarter. While the IT services revenue was within the guided range, it failed to meet Street expectations, and the disappointing forecast for Q1 FY26 triggered a sell-off.
Out of the 45 analysts covering the stock:
- 11 maintain a Buy rating,
- 15 recommend Hold, and
- 19 have assigned a Sell.
📊 Q4 Results: Mixed Signals for Wipro Shares
Wipro’s Q4 FY25 results showed a 0.8% sequential decline in constant currency revenue, which was at the lower end of its -1% to +1% guidance. Analysts were expecting a slightly better outcome, with some estimating a 0.2% decline.
The real shock came from the Q1 FY26 guidance, which indicates a 1.5% to 3.5% sequential revenue drop. This signals that Wipro shares could face more downside pressure in the near term.
🔍 Brokerage Reactions: Downgrades and Target Cuts Hit Wipro Share Price
Several top brokerages reacted swiftly:
- Nuvama Institutional Equities downgraded Wipro to Hold, slashing the target price to ₹260 from ₹300. It cited Wipro’s valuation catching up with peers like TCS and Infosys, eliminating the valuation gap that once justified a bullish stance.
- Emkay Global maintained a Reduce rating, with a target price of ₹260. Analysts appreciated Wipro’s deal intake and margin control but flagged the revenue miss and cautious guidance.
- Bernstein issued an Underperform rating with a reduced price target of ₹200. The firm believes Wipro’s FY26 could be marred by negative growth amid global macro headwinds.
- Nomura, although still optimistic, revised its target to ₹280 from ₹320, noting that macro uncertainty is affecting client decision-making and delaying project ramps.
💡 Why Is Wipro Guidance Weak?
Wipro management pointed to multiple macroeconomic challenges:
- Pause in client programs
- Delayed project ramp-ups
- General caution due to global uncertainty
- US tariff concerns affecting enterprise IT spending
These factors are leading clients to re-evaluate IT budgets, especially in discretionary areas where Wipro holds significant exposure.
💬 Wipro Share Price: Analyst Sentiment Mixed but Tilting Bearish
Even with a 4% dividend yield for FY27 and a current P/E ratio of 18.6x FY27 earnings, Wipro is struggling to attract bullish sentiment. EPS estimates for FY26–27 are already being revised downward by 2–4% by brokerages.
The Wipro share price has dropped 23.5% from its 52-week high of ₹323, and has declined 5% over the last month. Despite Wednesday’s minor 1.5% rebound to ₹247.5, sentiment remains fragile.
📈 Technical View: Is There Support Ahead for Wipro Shares?
Technically, the next strong support zone is seen near ₹225, a level previously tested in late 2023. A breakdown below that may push the Wipro share price toward the ₹200–₹210 band, aligned with bearish brokerage targets.
Short-term traders should remain cautious unless the stock reclaims levels above ₹250–₹255, which could signal temporary stability.
✅ What Should Investors Do With Wipro Shares Now?
For Long-Term Investors:
- Hold with caution if already invested.
- Look for Q2 commentary or large deal wins to validate any recovery thesis.
- High dividend yield makes it a defensive hold, but not a growth stock in the near term.
For Traders:
- Avoid long positions until there’s clarity on support near ₹225.
- Watch for price action post Q1 FY26 earnings to assess reversal potential.
🧠 Conclusion: Is It Time to Sell or Stay Put?
The current correction in Wipro share price stems from real concerns — not just market overreaction. Analysts are adjusting their models to reflect persistent macro pressure, cautious enterprise spending, and the lack of near-term growth visibility.
While the long-term transformation strategy and global delivery strengths remain intact, the short-term pain for Wipro shareholders may continue until there’s a clear turnaround in revenue growth or renewed optimism around IT demand.
