Strong deal momentum and cost discipline support earnings beat, but stock slips amid muted revenue guidance
Wipro Ltd on July 17 reported a robust 11% year-on-year rise in consolidated net profit to ₹3,330 crore for the quarter ended June 30, 2025, surpassing Street estimates of ₹3,249 crore, as per a Bloomberg poll. The company’s revenue from operations rose marginally to ₹22,135 crore, also exceeding expectations of ₹22,078 crore.
The IT services major announced an interim dividend of ₹5 per share, with July 28 set as the record date. Despite the earnings beat, Wipro shares closed 1.5% lower at ₹258.75 on the NSE, reflecting conservative revenue guidance and ongoing sector headwinds.
Net profit: ₹3,330 crore (+11% YoY)
Revenue: ₹22,135 crore (+0.8% YoY)
Dividend: ₹5/share; record date – July 28
Beats both topline and bottomline estimates
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Market Reaction & Technical Setup
Despite the positive numbers, Wipro’s stock declined, weighed by cautious Q2 guidance and concerns over macroeconomic softness. The company maintained a -1% to +1% revenue growth forecast for the ongoing quarter, signaling limited near-term acceleration.
From a technical perspective, Wipro is trading below its 20-DMA, with RSI slipping to 46, indicating weakening near-term momentum. Immediate support lies near ₹252, while resistance is seen at ₹268.
“The earnings beat is encouraging, but lack of growth visibility in Q2 is keeping investors on the sidelines,” said a senior analyst at a domestic brokerage firm.
RSI: 46 (Neutral-to-weak)
Support: ₹252 | Resistance: ₹268
Stock down 1.5% despite large deal wins
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Sectoral Snapshot & Peer Comparison
The Q1FY26 results of major Indian IT firms have been a mixed bag. While TCS posted a 6% YoY rise in profit, HCL Tech reported a 10% YoY decline. In this context, Wipro’s earnings beat stands out, especially as the company reported large deal wins worth $2.67 billion, up from $1.76 billion last quarter.
In total, Wipro closed 16 large deals, including two mega deals, boosting its total deal wins to $4.97 billion, a sequential increase from $3.96 billion. However, constant currency revenue dipped 2.3% YoY, reflecting broader client budget constraints and slower discretionary spending.
The Nifty IT index ended flat, mirroring investor caution amid weak forward commentary from top players. Infosys, which reports results later this week, remains a key event for sentiment in the sector.
TCS profit: ₹12,760 crore (+6% YoY)
HCLTech profit: ₹3,843 crore (-10% YoY)
Nifty IT ends flat; deal flow supports downside protection
Trading Outlook: Key Levels and Earnings Watch
Going forward, Wipro’s stock may remain rangebound as traders weigh the positive margin expansion against tepid revenue growth guidance. Strong cash flow conversion (123% of net income) and robust deal wins provide a cushion, but near-term upside will depend on visibility into FY26 second-half acceleration.
Traders will focus on Infosys’ Q1 earnings later this week and global macro indicators, especially US inflation and Fed commentary, for directional cues.
Watchlist:
Wipro: Key trigger at ₹268; watch delivery volumes and deal commentary
Infosys: Q1 results on July 18; key to sector sentiment
Tech Mahindra: Eyes ₹1,300 breakout ahead of results
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