Wipro
Wipro is a Bengaluru-based IT services and consulting company that writes software, runs client IT systems and offers engineering/BPO services, mostly billed to large overseas clients in dollars.
- P/E ~12x
- Div yield ~4.8%
- Down 49% from FY22 peak
- Margin at 15-qtr low
- Results due Oct 15
Updated on 13 Oct 2026 · Data as of 13 Oct 2026
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Snapshot
- Share price
- ₹167.25
- 13 Oct 2026
- 52-week range
- ₹156.79 – ₹262.81
- All-time peak
- ₹329.53
- 4 Jan 2022 · −49.2% from peak
- Dividend yield
- 4.78%
- Price history since
- 1996
- About 30 years of prices
What's happening
Wipro reports Q2 FY27 results (quarter ended September 30, 2026) on October 15, 2026 - two days away. The last reported quarter (Q1 FY27, June 2026) showed revenue up but IT services operating margin falling to 16.0%, a 15-quarter low, with management citing wage hikes, large-deal ramp-up costs and AI investment. The company completed a ₹15,000 crore buyback at ₹250/share in June 2026, and in early October announced the merger of its VLSI design unit into its IT services arm and the acquisition of customer contracts from Alpha Net Consulting. The stock hit fresh 52-week lows around ₹156.6 in late September 2026 on demand and margin worries before recovering slightly.
In plain terms
Wipro sells IT services to big companies abroad, so its revenue is largely dollar-denominated and sensitive to global corporate tech spending. Reported rupee revenue is growing (helped by a weaker rupee), but the actual dollar business grew barely 1% last quarter, and the share of revenue kept as profit (margin) has been shrinking to multi-year lows. Management is spending more on AI and winning large deals that take time to become profitable, so it is asking shareholders to trust that margins will recover - without giving a date. That gap between promised improvement and reported numbers is the central tension here.
Quarters
FY26 (year to March 2026): revenue ₹926.2bn, up 4.0% YoY; net income ₹132.0bn, up just 0.5% YoY - revenue grew faster than profit, meaning margins were already under some pressure. Q4 FY26 (Mar 2026): revenue ₹242.4bn (+7.7% YoY), net income ₹35.0bn (-1.9% YoY), IT services margin 17.3%. Q1 FY27 (Jun 2026): gross revenue ₹244.8bn / $2.59bn - reported +10.6% YoY in rupees, but underlying IT services dollar revenue grew only about 1.0% YoY, so most of the headline growth is currency translation, not real business growth. Net income ₹33.6bn, up just 0.6% YoY; IT services margin fell to 16.0%, down 1.3 points QoQ and a 15-quarter low. Management (CFO Aparna Iyer) says it wants margins back in a 17-17.5% band but gave no timeline, citing wage hikes, ramp-up costs on large deals and AI investment. Guidance for Q2 FY27 (due Oct 15, 2026): IT services revenue of $2.574-2.627bn, i.e. -1.5% to +0.5% QoQ in constant currency - a soft outlook.
Performance
Heads-up on splits: Wipro has split its shares or issued bonus shares before (most recently 2-for-1 on 3 Dec 2024, ×1.33 on 6 Mar 2019 and 2-for-1 on 13 Jun 2017). A sudden price drop around a split date is usually just the price adjusting for the extra shares, not a crash.
Share price
−29.2% over 1 year
Returns by period
| Period | Wipro | Nifty 50 | Infosys |
|---|---|---|---|
| 3 months | −4.5% | −6.4% | −4.1% |
| 1 year | −29.2% | −10.7% | −27.2% |
| 3 years | −11.8% | +14.1% | −19.7% |
| 5 years | −45.6% | +24.0% | −29.6% |
₹100 invested on 13 Oct 2021 became…
- Wipro₹54
- Nifty 50₹124
- Infosys₹70
The stock is down 49.2% from its January 2022 peak of ₹329.53 to ₹167.25 now. This is a genuine business/sentiment decline, not a corporate-action artifact - Wipro has had several stock splits over the decades (most recently 2-for-1 in December 2024) but no demerger or spin-off, and standard adjusted price series already account for splits. Over 5 years the stock is down 45.6% while the Nifty is up 24% and peer Infosys is down 29.6% - Wipro has badly lagged both the market and its closest listed peer. Over 3 years Wipro (-11.8%) has actually held up slightly better than Infosys (-19.7%), though both trail the Nifty (+14.1%) by a wide margin. Over 1 year both IT majors fell together (Wipro -29.2%, Infosys -27.2%) against a much smaller Nifty decline (-10.7%).
Dividend
Paid in the last 12 months
₹8.00 per share
Dividend yield
4.78%
Dividend yield is the last 12 months of dividends divided by today's share price. A 4.8% yield means every ₹100 of Wipro shares paid about ₹4.8 in dividends over the past year. Past payouts can change.
Recent dividends
| Date | Per share |
|---|---|
| 27 Jul 2026 | ₹2.00 |
| 27 Jan 2026 | ₹6.00 |
| 28 Jul 2025 | ₹5.00 |
| 28 Jan 2025 | ₹6.00 |
| 24 Jan 2024 | ₹0.50 |
| 24 Jan 2023 | ₹0.50 |
| 5 Apr 2022 | ₹2.50 |
| 21 Jan 2022 | ₹0.50 |
Valuation
Wipro trades around 12x trailing earnings (estimates across sources range roughly 11.9x-15x depending on date and basis), with a dividend yield of 4.78% on trailing payouts of ₹8/share - unusually high for an IT stock. Why it looks cheap: real (dollar) revenue growth is near-flat, margins are at multi-year lows, and the sector faces AI-driven pricing uncertainty - this is a discount earned by weak near-term fundamentals, not simply a case of the market overlooking a good business. Separately, the company's own ₹15,000 crore buyback in June 2026 was priced at ₹250/share, about 50% above today's ₹167 - worth noting as a data point on management's capital-allocation call, though a buyback price is not itself evidence of fair value.
Growth
Growth is weak and currency-flattered rather than volume-led: IT services dollar revenue rose only ~1% YoY in the latest quarter even as rupee-reported revenue rose over 10%. Large deal bookings have been strong in absolute terms ($2.9bn in Q2 FY26, up 90.5% YoY; $1.6bn across 13 deals in Q1 FY27), which could support future volumes, but these deals typically carry lower margins while ramping up, which is exactly what is squeezing current profitability. Net income growth has essentially stalled (+0.5% for FY26, +0.6% YoY in Q1 FY27) despite higher revenue - a sign margins, not volumes, are absorbing the strain.
Health
Cash conversion looks healthy: operating cash flow has run close to or above net income in recent quarters (98% of net income in Q1 FY27, 104% in the year-ago Q2 FY26 quarter), so reported profit is backed by real cash, not stuck in receivables. Promoter pledging is 0%, and no major debt stress has surfaced in recent coverage (exact current debt/equity - not verified, check on Screener). The risk here is business risk - margin compression and soft demand - rather than financial/balance-sheet risk.
Ownership
Promoters - the Azim Premji family, through Zash Traders, Prazim Traders, Hashim Traders and the Azim Premji Trust - held roughly 72.6% as of March 2026, essentially stable for years, with zero pledged shares. FII holding was around 10.8% and mutual funds around 4.4% as of the most recent disclosed quarter available (September 2025 data; current-quarter figures not independently verified). There is no marquee named retail investor on the register of the type sometimes seen in other Indian large caps - ownership here is overwhelmingly promoter- and institution-held.
The View
The one thing to watch
The Q2 FY27 results due October 15, 2026 - specifically whether IT services margin stabilizes or improves toward management's 17-17.5% target, and whether revenue lands within or below the guided -1.5% to +0.5% QoQ range.
Strengths
- +ROE of roughly 15.5-16% and ROCE of roughly 17.8-18.5%, both above typical IT-sector medians cited by multiple sources
- +Operating cash flow has run 98-104% of net income in recent quarters - profit is converting cleanly to cash
- +Large deal bookings have grown sharply ($2.9bn in Q2 FY26, +90.5% YoY; 13 deals worth $1.6bn in Q1 FY27), building a pipeline for future revenue
- +Zero promoter pledging, plus active capital return via a 4.78% dividend yield and a completed ₹15,000 crore buyback in June 2026
Watchpoints
- !IT services operating margin fell to 16.0% in Q1 FY27, a 15-quarter low, with management giving no timeline to return to its 17-17.5% target band
- !Underlying dollar revenue growth is near-flat (~1% YoY in the latest quarter) - most reported rupee revenue growth is currency translation, not real business growth
- !Stock hit fresh 52-week lows (~₹156.6) as recently as late September 2026, and the company's own Q2 FY27 guidance points to another flat-to-slightly-down quarter
- !Five-year shareholder return (-45.6%) badly trails both the Nifty (+24%) and peer Infosys (-29.6%) - a sustained, not one-off, underperformance
How sure are we about the data? · Moderate
Cross-checked Q4 FY26 and Q1 FY27 results and buyback terms against Wipro's own press releases/SEC filings and independent aggregators (StockTitan, AngelOne, IndiaInfoline). Valuation ratios vary by source (P/E cited 11.87x-15.05x, ROE 15.5-19.3%, ROCE 17.8-24.4% depending on trailing period and consolidated basis) - conservative/lower-end figures used. Current-quarter (September 2026) shareholding percentages and exact debt levels were not independently verified - check Screener for the latest figures.
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Ticker Tales is not a SEBI-registered investment adviser or research analyst. This report is for learning only and is not investment advice. Data as of 13 Oct 2026.