Wipro Limited (WIPRO) AI Stock Analysis

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Wipro Limited

(WIPRO)

Rating:74Outperform

Price Target:

₹281.00

▲(12.18% Upside)

Wipro's overall stock score reflects strong financial performance and promising future growth prospects, tempered by current revenue challenges and mixed technical indicators. The attractive dividend yield adds to its appeal, but vigilance is needed regarding revenue trends and market conditions.

Wipro Limited (WIPRO) vs. iShares MSCI India ETF (INDA)

Market Cap

₹2.64T

Dividend Yield4.36%

Average Volume (3M)412.03K

Price to Earnings (P/E)19.6

Beta (1Y)1.01

Revenue Growth0.41%

EPS Growth20.30%

CountryIN

Employees234,000

SectorTechnology

Sector Strength85

IndustryInformation Technology Services

Share Statistics

EPS (TTM)3.20

Shares Outstanding10,483,243,000

10 Day Avg. Volume458,789

30 Day Avg. Volume412,031

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

₹258.31

Price Target Upside3.12% Upside

Rating ConsensusModerate Sell

Number of Analyst Covering13

Wipro Limited Business Overview & Revenue Model

Company DescriptionWipro Limited is a leading global information technology, consulting, and business process services company headquartered in Bangalore, India. Operating in over 50 countries, Wipro leverages its extensive industry experience to provide a comprehensive range of services including digital strategy, IT consulting, systems integration, and business process outsourcing. The company serves a wide array of industries, including healthcare, financial services, retail, energy, and technology, through its diverse portfolio of solutions and services.

How the Company Makes MoneyWipro Limited primarily generates revenue through its comprehensive suite of IT services and solutions. The company earns money by providing IT consulting, software development, systems integration, and business process outsourcing services to a diverse client base across various industries. Key revenue streams include digital transformation services, cloud services, cybersecurity, analytics, and application services. Wipro has also established significant partnerships with technology giants such as Microsoft, AWS, and Google Cloud, enhancing its service offerings and expanding its market reach. These collaborations, along with its focus on innovation and digital transformation, contribute significantly to its revenue growth.

Wipro Limited Earnings Call Summary

Earnings Call Date:Jul 17, 2025

(Q1-2026)

% Change Since: |

Next Earnings Date:Oct 15, 2025

Earnings Call Sentiment Neutral

The earnings call revealed a mixed performance with strong deal wins and margin expansions, but significant revenue declines and challenges in Europe and certain sectors. While the company has secured strong future growth prospects with mega deals, the current revenue and discretionary spending environment remains challenging.

Q1-2026 Updates

Positive Updates

Strong Deal Wins

Reported bookings worth $5 billion in total contract value, a growth of 51% year-on-year. Large deal bookings reached $2.7 billion, up 131% year-on-year.

Expansion in IT Services Margin

IT Services margin expanded by 80 basis points year-on-year to 17.3%.

Net Income Growth

Net income grew by 10.9% year-on-year despite a one-time restructuring cost.

Increased Dividend Payout

Declared an interim dividend of INR 5 per share, with cash distributions exceeding $1.3 billion in the last 6 months.

Positive Outlook for BFSI and Technology

Strong pipeline and mega deal wins in BFSI and Technology sectors in North America.

Negative Updates

Revenue Decline

IT Services revenue declined by 2% quarter-on-quarter and 2.3% year-on-year in constant currency terms.

Challenges in Europe

Europe revenue declined by 6.4% sequentially and 11.6% year-on-year, with ongoing macroeconomic and client-specific challenges.

Sectoral Weakness

Consumer sector declined by 4% sequentially and 5.7% year-on-year. Energy, Manufacturing, and Resources declined 0.7% sequentially and 2.4% year-on-year.

Discretionary Spend Environment

Discretionary spending remains weak, particularly impacting smaller and medium-sized deals.

Company Guidance

During the Wipro Limited Q1 FY'26 earnings call, the company provided guidance for their IT Services revenue, projecting a sequential growth range of minus 1% to plus 1% in constant currency terms. The IT Services revenue for the quarter was reported at $2.59 billion, marking a 2% quarter-on-quarter decline in constant currency and a year-on-year decline of 2.3%. The operating margin stood at 17.3%, showing an expansion of 80 basis points year-on-year. Geographically, the Americas saw a 1.5% year-on-year growth in constant currency, while Europe faced significant headwinds with a 6.4% sequential decline and an 11.6% year-on-year decline. In terms of industry sectors, BFSI experienced a 3.8% sequential decline, whereas healthcare grew by 0.5% sequentially. The company also reported strong large deal bookings with a total contract value of $5 billion, a 51% year-on-year growth, including $2.7 billion in large deal bookings, up 131% year-on-year. Despite the macroeconomic uncertainties, Wipro expressed confidence in its consulting-led, AI-powered solutions and its ability to deliver long-term value, backed by a robust order book and a healthy pipeline.

Wipro Limited Financial Statement Overview

Summary

Wipro's financial performance is strong, with consistent revenue growth and healthy profit margins. The balance sheet shows low leverage and a strong equity position, although rising liabilities and capital expenditures need monitoring.

Income Statement

Very Positive

Wipro's income statement reflects a strong financial performance with consistent revenue growth. The TTM revenue of 892.59 billion indicates a stable growth trajectory. Gross profit and net profit margins remain healthy at approximately 30.33% and 15.08% respectively, illustrating efficient cost management. EBIT and EBITDA margins of 16.91% and 25.04% further highlight operational efficiency. However, a slight decline in revenue compared to previous annual figures suggests a need for vigilance in maintaining growth momentum.

Balance Sheet

Positive

The balance sheet shows a solid financial position with a favorable debt-to-equity ratio of approximately 0.18, indicating low leverage. Return on equity stands at 15.49%, reflecting effective use of shareholder funds. The equity ratio of 66.44% signifies a strong capital structure. Nonetheless, increasing total liabilities warrant monitoring to ensure continued financial stability.

Cash Flow

Positive

Wipro's cash flow statement demonstrates robust liquidity with a positive free cash flow of 155.43 billion in the TTM period. The operating cash flow to net income ratio of 1.27 signifies strong cash generation capability relative to profit. Although free cash flow to net income ratio at 1.15 is solid, the negative trend in investing cash flow highlights substantial capital expenditures, which may impact future free cash flow growth.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	892.59B	890.88B	897.60B	904.88B	790.93B	619.43B
Gross Profit	270.85B	273.08B	266.11B	259.43B	235.06B	196.22B
EBITDA	223.53B	218.15B	192.37B	189.38B	187.45B	168.41B
Net Income	134.63B	131.35B	110.45B	113.50B	122.19B	107.95B
Balance Sheet
Total Assets	1.31T	1.28T	1.15T	1.18T	1.08T	831.43B
Cash, Cash Equivalents and Short-Term Investments	530.67B	533.45B	408.12B	401.87B	351.28B	346.12B
Total Debt	158.74B	192.03B	164.65B	174.67B	175.93B	104.51B
Total Liabilities	437.08B	456.07B	401.24B	394.07B	420.51B	276.84B
Stockholders Equity	868.90B	828.31B	749.88B	781.16B	658.16B	553.10B
Cash Flow
Free Cash Flow	155.43B	154.39B	165.71B	115.77B	90.64B	127.97B
Operating Cash Flow	170.59B	169.43B	176.22B	130.60B	110.80B	147.55B
Investing Cash Flow	-42.26B	-80.73B	11.68B	-84.06B	-224.50B	7.74B
Financing Cash Flow	-103.63B	-63.96B	-182.57B	-60.88B	46.59B	-128.84B

Wipro Limited Technical Analysis

Technical Analysis Sentiment

Positive

Last Price250.50

Price Trends

50DMA

253.65

Negative

100DMA

248.32

Positive

200DMA

266.85

Negative

Market Momentum

MACD

-0.41

Negative

RSI

54.45

Neutral

STOCH

71.25

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:WIPRO, the sentiment is Positive. The current price of 250.5 is above the 20-day moving average (MA) of 246.31, below the 50-day MA of 253.65, and below the 200-day MA of 266.85, indicating a neutral trend. The MACD of -0.41 indicates Negative momentum. The RSI at 54.45 is Neutral, neither overbought nor oversold. The STOCH value of 71.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:WIPRO.

Wipro Limited Risk Analysis

Wipro Limited disclosed 60 risk factors in its most recent earnings report. Wipro Limited reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Wipro Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (54)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LTIM	76 Outperform	₹1.53T	32.38		2.13%	7.64%	3.35%
WIPRO	74 Outperform	₹2.64T	19.59		4.36%	0.41%	20.30%
PERSISTENT	72 Outperform	₹840.94B	54.83		0.65%	22.44%	26.98%
COFORGE	66 Neutral	₹581.57B	59.13		0.89%	44.02%	18.89%
HCLTECH	64 Neutral	₹4.05T	24.00		3.22%	6.87%	3.34%
TECHM	55 Neutral	₹1.47T	29.27		3.00%	2.88%	79.99%
Sector *	54 Neutral	$298.66M	3.86	-5.40%	2.71%	9.11%	-73.63%

* Technology Sector Average

Performance Comparison

IN:WIPRO

Wipro Limited

250.50

-8.46

-3.27%

IN:COFORGE

Coforge Limited

1,738.50

493.82

39.67%

IN:HCLTECH

HCL Technologies Limited

1,492.25

-197.97

-11.71%

IN:LTIM

LTIMindtree Limited

5,160.75

-891.07

-14.72%

IN:PERSISTENT

Persistent Systems Limited

5,376.85

328.64

6.51%

IN:TECHM

Tech Mahindra Limited

1,502.20

-100.67

-6.28%

Wipro Limited Corporate Events

Wipro Grants Over 17 Million RSUs to Employees

May 4, 2025

Wipro Limited has announced the grant of over 17 million Restricted Stock Units (RSUs) and American Depositary Shares (ADS) RSUs to its employees and those of its subsidiary under the company’s Employee Stock Options and Performance Stock Unit Scheme 2024. This strategic move, effective from May 3, 2025, is aimed at incentivizing and retaining talent, potentially impacting the company’s operational efficiency and market competitiveness.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 21, 2025