Wipro Shares Jumped 4% After Q1: Why This Mega IT Is Rallying? Should You Buy? Rs 5 Dividend Record Date Soon

Wipro's share price climbed more than 4% on July 18, after the Azim Premji backed IT player reported steady performance in Q1FY26. Broadly, Wipro's earnings are above estimates and also outshining its peers like TCS and HCL. Also, the company has declared an interim dividend of Rs 5 ahead. Hence, investors are bullish on Wipro.

Wipro Share Price:

At the time of writing, Wipro stock price traded at Rs 266.10 apiece on BSE, higher by 2.25% with a market cap of Rs 2,78,944.13 crore. The stock zoomed by more than 4.4% after hitting an intraday high of Rs 271.80 apiece in the early trade.

Wipro shares surged after Q1 results. Analysts at JM Financial said, "WPRO's 1Q performance met expectations. Revenues, though down 2% cc QoQ (JMFe: -2%), came in the upper half of its -3.5% to -1.5% guide. EBIT margin at 17.3% (-20bps; JMFe: 17.3%) remained in a narrow range, offsetting revenue contraction - a common theme in recent history."

Also, Wipro projects Q2FY26 revenue between USD 2.56-2.61 billion, indicating -1% to +1% sequential growth in CC terms. The company expects a stronger H2FY26, supported by large recent deal wins & a healthy pipeline.

Wipro Q1 Results:

Wipro reported gross revenue of Rs 221.3 billion ($2,581.6 million), a decrease of 1.6% QoQ and an increase of 0.8% YoY. While net income for the quarter was at Rs 33.3 billion ($388.4 million), a decrease of 6.7% QoQ and an increase of 10.9% YoY.

In the quarter, Wipro posted total bookings of $4,971 million, up by 24.1% QoQ and 50.7% YoY in constant currency. Large deal bookings were at $2,666 million, an increase of 49.7% QoQ and 130.8% YoY in constant currency.

For the upcoming September 2025 quarter, Wipro expect revenue from its IT Services business segment to be in the range of $2,560 million to $2,612 million. This translates to sequential guidance of (-)1.0% to 1.0% in constant currency terms.

Wipro Interim Dividend:

The IT player has declared an interim dividend of Rs 5 per equity share of par value Rs 2 each to the Members of the Company as on July 28, 2025, being the Record Date. The payment of the Interim Dividend will be made on or before August 15, 2025.

Should You Buy Wipro Shares?

Analysts at Choice Institutional Equities expect a potential Top-line recovery for Wipro, contingent on favourable macroeconomic conditions & the positive impact of Phoenix deal signed in Q4FY25. These factors could support a rebound starting in Q3FY26, positioning Wipro for growth in H2.

Also, these analysts believe growth & execution of secured deals are prioritized, even if some quarters see elevated investments. Thus, they anticipate a conservative margin expansion to 17.2% by FY28E. On headcount front, Wipro's would remain focused on acquiring right talent & teams for large deals execution. Attrition rate for the quarter stood at 15.1%.

"While macro and geopolitical uncertainty remains elevated, the management is confident of growth acceleration in H2 on the back of strong deal intake, robust deal pipeline, and improved execution rigor. The management indicated pressure on margins in the near term due to anticipated ramp up of competitively-priced large deals and initial investments in such deals, although it refrained from quantifying the overall impact. We prefer to wait for clarity on the margin trajectory before taking a more constructive view. We trim FY26-28E EPS by ~1%, factoring in the Q1 performance; retain REDUCE with TP of Rs280 at 20x Jun-27E EPS," said Emkay Global in its note.

Similarly, Choice Institutional analysts said, Wipro's outlook shows signs of improvement, reflected in its Q2FY26E revenue guidance of -1% to +1%, up from -3.5% to 1.5% for Q1FY26. However, future performance heavily depends on execution & evolving macroeconomic conditions, as demand remains uncertain. Management has noted some discretionary spending pockets in BFSI & Healthcare, but most deals focus on cost optimization & vendor consolidation.

Considering these factors, they said, "we have adjusted our revenue estimates downward by 0-3.5% & rolled over FY28 estimates. We maintain our REDUCE rating & Target Price of INR 252, implying P/E multiple of 19x (maintained), based on average FY27E & FY28E EPS of INR 13.3."

On the other hand, JM Financial has raised its target on Wipro with BUY recommendation.

With margins now in WPRO's target band of 17-17.5%, its focus has pivoted decisively to growth. TCV of USD 5bn at book-to-bill of 1.9x, highest across peer group, offers strong evidence, JM's note said.

"It won two mega deals (USD 500mn+) in 1Q, on the back of Phoenix deal in 4Q (GBP 500mn+). Importantly, all these deals have come in multi-vendor scenarios, underlining WPRO's competitive positioning and improved win ratio, an often-underrated aspect of WPRO's strength. Healthy mix of new scope in bookings, receding client specific challenges in EU and absence of drag from CAPCO mean TCV-revenue conversion should be better too. CAPCO, with USD 1bn of LTM bookings, could in fact add to growth. These reflect in management's stronger 2H outlook. Deal transition cost could weigh on near-term margins though. That is however a small, and transitory, sacrifice to gain the most potent margin lever - growth," JM's note added.

Accordingly, JM analysts have raised FY26/27E cc revenues but lowered margin estimates to model these. Though EPS neutral, improving growth prospects should reflect in better multiples. They reiterated BUY with a revised TP of INR 320 (from INR 310).

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.