Shares of Wipro Ltd are likely to be in focus on Friday after the IT services company reported a mixed set of fiscal first quarter results, prompting divergent brokerage views. While Nomura retained its 'Buy' rating, Jefferies maintained its 'Underperform' stance and cut its earnings estimates, citing weaker-than-expected growth prospects.
Wipro's American depositary receipts (ADRs) rose 0.54 percent overnight following the earnings announcement. The stock had ended Thursday's session 1.75 percent higher at Rs 177.70, ahead of the results. Despite the recent gains, the stock remains down 33.5 percent so far in 2026, giving the company a market capitalisation of about Rs 1.76 lakh crore.
The IT major reported a consolidated net profit of Rs 3,352 crore for Q1 FY27, up 0.6 percent year-on-year, while revenue rose 10.6 percent to Rs 24,479 crore but missed analysts' estimates. The company declared an interim dividend of Rs 2 per share and guided for September-quarter IT services revenue growth of between a 1.5 percent decline and 0.5 percent growth in constant currency terms.
Nomura retained its 'Buy' rating on Wipro stock with a target price of Rs 190, implying about 7 percent upside from Thursday's closing price. The brokerage described the April-June quarter as subdued, and added that the July-September-quarter revenue guidance was slightly below expectations. Further, it said the deal wins were weak during the quarter.
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However, Nomura expects margins to recover to the 17-17.5 percent range over the coming quarters. It also said Wipro's expected FY27 dividend yield of around 5 percent provides support to the stock despite the near-term softness.
On the other hand, Jefferies maintained its 'Underperform' rating with a target price of Rs 150, implying about 16 percent downside. The brokerage said the 140-basis-point sequential decline in operating margin and weaker-than-expected September-quarter growth guidance reinforced its cautious stance. It expects organic revenue growth to remain weak through FY27 and cut its FY27-FY29 revenue and profit estimates by 2-5 percent.
Jefferies also expects Wipro to deliver only around 5 percent earnings per share CAGR over FY27-FY29. It believes the stock's risk-reward remains unattractive despite an expected dividend yield of about 5 percent.