{"id":38886,"date":"2025-04-17T11:36:35","date_gmt":"2025-04-17T11:36:35","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/04\/17\/analysts-warn-of-a-third-year-of-revenue-decline-stock-downgraded-as-wipro-slides-on-weak-q1-forecast\/"},"modified":"2025-04-17T11:36:35","modified_gmt":"2025-04-17T11:36:35","slug":"analysts-warn-of-a-third-year-of-revenue-decline-stock-downgraded-as-wipro-slides-on-weak-q1-forecast","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/04\/17\/analysts-warn-of-a-third-year-of-revenue-decline-stock-downgraded-as-wipro-slides-on-weak-q1-forecast\/","title":{"rendered":"Analysts warn of a third year of revenue decline, stock downgraded as Wipro slides on weak Q1 forecast"},"content":{"rendered":"
<\/div>\n

Shares of Wipro Ltd dropped as much as 6.3% on Thursday after the IT services firm issued a disappointing revenue forecast for the June quarter, raising concerns of a third consecutive year of decline amid persistent global tech spending cuts.<\/p>\n

India\u2019s fourth-largest IT exporter said on Wednesday it expects revenue in the April-June period to fall between 1.5% and 3.5% sequentially, with new Chief Executive Srini Pallia warning that “uncertainties have dramatically increased” going into the new fiscal year.<\/p>\n

The guidance, analysts said, marks a worrisome start for fiscal 2026 and signals continued headwinds despite a leadership change. <\/p>\n

Pallia, who took over in April 2024 following the abrupt exit of Thierry Delaporte, inherits a company grappling with a string of weak quarters, stalled large deals, talent attrition, and market share erosion.<\/p>\n

Wipro shares were down 5% as of 11:51 am IST on Thursday, extending their year-to-date decline to 22.4%. <\/p>\n

While that is marginally better than the broader Nifty IT index\u2019s 24.8% fall, it underscores growing investor scepticism about the firm\u2019s prospects.<\/p>\n

Analysts warn of a third year of revenue contraction<\/h2>\n

Brokerages were quick to flag that Wipro\u2019s first-quarter guidance could derail any early hopes of a recovery. <\/p>\n

\u201cThe first quarter guidance sets the stage for another challenging year following two years of revenue decline,\u201d analysts at Phillip Capital said in a note.<\/p>\n

Several firms\u2014including Nomura, Nuvama, Emkay, and ICICI Securities\u2014trimmed their FY26 and FY27 earnings estimates, citing elevated macroeconomic uncertainty, slowing transformation project spends, and the lingering impact of geopolitical tensions and tariffs, particularly in key markets like the United States.<\/p>\n

Nomura cut its FY26 earnings per share (EPS) estimates by 2\u20134% and revised the target price to \u20b9280 from \u20b9300. <\/p>\n

It maintained a Buy rating, citing improved shareholder return policies, but warned that its earnings projections remain 8\u20139% below Bloomberg consensus.<\/p>\n

Nuvama downgraded the stock to Hold and reduced its price target to \u20b9260, stating that Wipro\u2019s weak first-quarter guidance jeopardizes the turnaround thesis. <\/p>\n

The brokerage lowered its FY26\/27 EPS estimates by up to 3.7%.<\/p>\n

Muted forecast triggers widespread downgrades<\/h2>\n

At least nine out of the 39 analysts covering the stock have downgraded their ratings, while 20 have cut their price targets, according to LSEG data. <\/p>\n

The average analyst rating remains at “Hold”, but the median target price has declined by nearly 14% to \u20b9250 over the past month.<\/p>\n

Emkay Global said the company\u2019s Q1 outlook factors in both potential demand recovery and further weakness. <\/p>\n

It maintained a “Reduce” rating with a \u20b9260 target, highlighting low near-term visibility despite a strong deal pipeline.<\/p>\n

ICICI Securities termed the March quarter\u2019s performance \u201cabysmal,\u201d citing weak revenues and macro concerns\u2014especially in discretionary-heavy sectors like auto and manufacturing. <\/p>\n

The firm said the lone bright spot was the total contract value (TCV) from two large deal wins, but added that Wipro\u2019s key challenge lies in translating orders into revenues and stabilising its European operations.<\/p>\n

Brokerages remain cautious as growth triggers remain elusive<\/h2>\n

Motilal Oswal Financial Services (MOFSL) cut its FY26\/FY27 EPS estimates by around 4%, anticipating a 1.9% YoY revenue decline in constant currency terms. <\/p>\n

The brokerage retained its Sell rating with a target price of \u20b9215, implying a valuation of 17 times FY27 earnings.<\/p>\n

Though some brokerages note positives such as improved capital allocation policies and a projected FY27 dividend yield of 4%, consensus suggests that the near-term outlook remains grim with little to spark a re-rating in the stock.<\/p>\n

The post Analysts warn of a third year of revenue decline, stock downgraded as Wipro slides on weak Q1 forecast<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares of Wipro Ltd dropped as much as 6.3% on Thursday after the IT services firm issued a disappointing revenue forecast for the June quarter, raising concerns of a third consecutive year of decline amid persistent global tech spending cuts. India\u2019s fourth-largest IT exporter said on Wednesday it expects revenue in the April-June period to <\/p>\n","protected":false},"author":1,"featured_media":38887,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-38886","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/38886","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=38886"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/38886\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/38887"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=38886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=38886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=38886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}