Wipro Shares Delivers Strong Q3 Results, Shares Surge Nearly 8%
Wipro, one of India’s leading IT companies, posted better-than-expected Q3 earnings, showcasing significant margin improvement despite the traditionally slow December quarter. This strong performance has sparked optimism among brokerages, with many revising their estimates for the company.
Stock Performance
On the back of positive earnings momentum, Wipro shares opened nearly 8% higher on January 20. By 9:27 AM, the stock was trading at Rs 303.75 on the NSE.
Highlights of Q3 Earnings
- Net Profit: Wipro reported a consolidated net profit of Rs 3,354 crore, up 4.5% QoQ, surpassing expectations of a 5% decline predicted by analysts.
- Revenue: Marginally increased to Rs 22,319 crore, beating estimates of a 0.6% drop to Rs 22,176 crore.
- EBIT Margin: Reached 17.5%, the highest in three years, driven by operational efficiencies and cost optimization.
This marks the fourth consecutive quarter of margin expansion, as noted by CFO Aparna Iyer.
Positive Views from Brokerages
Nomura
- Praised Wipro’s margin performance and earnings beat across all parameters.
- Maintained a ‘buy’ rating with a target price of Rs 340.
- Raised its FY25-27 earnings-per-share estimates for Wipro by 2-5%.
Macquarie
- Highlighted the 106-basis-point margin surprise, exceeding expectations.
- Retained its ‘outperform’ rating with a price target of Rs 330.
Nuvama Institutional Equities
- Applauded Wipro’s favourable portfolio mix, new leadership momentum, and strong margins.
- Rated Wipro as a ‘buy’, maintaining its Rs 350 target price.
- Revised its FY25 and FY26 estimates, increasing them by 5% and 2%, respectively, factoring in higher margins.
Cautious Optimism
Citi
- Acknowledged the significant margin beat and removed Wipro Shares from its negative catalyst watch.
- Maintained a ‘sell’ rating, citing concerns that Wipro Shares growth could lag behind peers in FY26.
- Set a lower price target of Rs 280, but noted that near-term EPS upgrades could give the stock a boost.
ADR Performance
Wipro’s American Depository Receipts (ADRs) listed on the NYSE also reacted positively, surging 4.2% to $3.44 on January 17 after the company released its Q3 numbers.
Outlook for Q4
Looking ahead, Wipro Shares has guided Q4 IT services revenue to grow within the range of -1% to 1% in constant currency terms. This is broadly aligned with market expectations, keeping the focus on operational efficiency and margin consistency.
Final Thoughts
Wipro Shares strong Q3 performance, particularly its three-year-high margins, has reinvigorated investor confidence. With multiple brokerages revising their outlook and targets, the company appears well-positioned for stable near-term growth. While some concerns around long-term growth remain, Wipro Shares operational efficiencies and cost management strategies are clear positives for investors.
