Wipro shares rise 5%, up 15% so far in October - Should you buy this IT stock after Q2 results? Experts suggest
Wipro shares climbed almost 5% in morning trade on the BSE on Friday, 16 October, a day after the company reported its September quarter (Q2FY26) results. Wipro share price opened at ₹170.35 against its previous close of ₹173.70 and jumped 4.72% to hit an intraday high of ₹181.90. At this price, the stock has gained 15%.
Wipro Q2 results
Wipro's Q2FY27 net profit declined 1.9% year-on-year (YoY) to ₹3,200 crore, while revenue from operations was ₹24,752.7 crore, up 9% from ₹22,697.3 crore in the year-ago quarter.
Revenue from the IT services segment was ₹24,667 crore, up 1% YoY.
Wipro said it expects revenue from the IT services business segment to be in the range of USD 2,571 million to USD 2,625 million in Q3 FY27, translating to a sequential guidance of (-)1.5 per cent to (+)0.5 per cent in constant currency terms.
Should you buy the stock?
Brokerage firm Choice Equity Broking has a "reduce" view on the stock with a target price of ₹160, citing Wipro’s Q2FY27 performance remained subdued, with management guiding for Q3FY27 growth of -1.5% to +0.5% QoQ in CC, reflecting seasonal furloughs and fewer working days.
According to Choice Broking, delayed deal signing is expected to provide a revenue tailwind into Q3 and Q4, while the demand environment remains largely unchanged.
"Clients are increasingly prioritising AI-led productivity and efficiency, creating opportunities for higher-value transformation. Wipro is scaling up investments across AI data centres, AI foundry services, physical AI, AI devices and design-to-manufacturing, broadening its position across the AI value chain," Choice Broking noted.
"We see improving deal conversion and monetisation of AI investments as key catalysts for a gradual growth recovery, though execution and margin delivery remain critical given near-term investment intensity. At 12 times average FY28 and 29 EPS, we arrive at a target price of ₹160 and assign ‘reduce’, implying limited valuation re-rating until growth momentum improves," said Choice.
Systematix Shares and Stocks (India) has a "hold" view on the stock with a target price of ₹175. The brokerage firm said while deal conversions and ramp-ups could support a Q4 recovery, the absence of a clear organic growth catalyst underpins our FY27E CC revenue forecast of -0.5%.
"Wipro’s turnaround remains constrained by weaker pockets within its portfolio, subdued demand and geopolitical headwinds," said Systematix.
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