Wipro ADRs surge 5% to two-month high despite Q2 profit dip: Is anti-AI trade driving gains?
A Ksheerasagar
The American Depositary Receipts (ADRs) of Wipro surged 5% in Thursday’s trade on 15 October to hit a nearly two-month high of $1.91, amid signs of a possible rotation back into software stocks as investors reassessed growth prospects and concerns surrounding the AI-driven sell-off in the sector persisted.
The gains came despite the Bengaluru-based IT major reporting a marginal decline in net profit for the September quarter, while its deal bookings fell to multi-year lows.
It reported a net profit attributable to equity holders of ₹3,200 crore, down 4.6% from ₹3,356.3 crore in the previous quarter and 1.9% year-on-year (YoY) from ₹3,262.4 crore in September 2025.
Wipro posted revenue from operations of ₹24,752.7 crore, marking a 1.1% increase from ₹24,478.6 crore in the June quarter and a 9% rise from ₹22,697.3 crore in the year-ago quarter. Revenue from the IT services segment came in at ₹24,667 crore, compared with ₹24,452.9 crore in the same period last year, marking a modest 1% YoY increase.
In constant currency terms, revenue remained flat quarter-on-quarter (QoQ) but increased by a modest 0.6% YoY. The IT services operating margin for Q2 FY27 stood at 16.5%, up 0.5 percentage points QoQ but down 0.2 percentage points YoY.
Revenue from the IT services segment stood at $2,611.5 million, down 0.1% QoQ but up 0.3% YoY.
Wipro’s total deal bookings fell to $2.6 billion in the September quarter from $4.7 billion a year earlier, marking a sharp decline. Bookings also fell 22.9% QoQ in constant currency terms. Large deal bookings came in at $0.7 billion, down 58.6% QoQ in constant currency terms.
Artificial intelligence (AI) has disrupted India’s $315 billion IT industry, prompting companies to revamp their business models and offer deeper discounts to win deals. Wipro has also faced challenges related to senior-level exits and acquisitions.
The company expects revenue from its IT services business to range between $2,571 million and $2,625 million in Q3 FY27. This translates into sequential revenue guidance of -1.5% to +0.5% in constant currency terms.
CEO Srinivas Pallia told reporters that a couple of deals had been awarded to Wipro but were not signed during the September quarter. These deals are expected to flow into the December quarter, and Pallia said he was “very, very bullish” about Q3 bookings. He added that seasonal furloughs would weigh on third-quarter performance.
According to market experts, Wipro shares are likely to open with modest gains in Friday’s trade, as the recent recovery in the stock gathers momentum amid a broader rotation back into software stocks. The stock has gained around 10% over the last four trading sessions as investors appear to be embracing the so-called anti-AI trade, helping it recover some of its steep losses.
Despite this double-digit recovery from recent levels, Wipro shares remain down 34% in 2026. The stock has, however, recovered modestly from its low, when losses had widened to 41%, and is now trading around ₹174 apiece.
A Ksheerasagar
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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