ICICI Securities Maintains Hold Rating on Wipro with Target Price of ₹256

Wipro faces headwinds as ICICI Securities maintains its Hold rating with a target price of ₹256.00, reflecting concerns over the IT services company's recent performance and near-term outlook. The brokerage's assessment comes amid soft revenue growth and a cautious demand environment that contrasts with more optimistic commentary from larger industry peers.

Q3FY26 Performance Analysis

The company reported modest organic revenue growth during the third quarter, with key metrics highlighting the challenges ahead:

Performance Metric	Q3FY26 Result
Organic Revenue Growth	0.60% QoQ CC
Deal TCV	$871.00 million
YoY TCV Change	-9.00%
Four-Quarter Average TCV	$2,061.00 million

The deal Total Contract Value of $871.00 million represents a significant decline from historical performance, falling well below the past four quarters' average of $2,061.00 million. This 9% year-on-year decrease in deal wins raises concerns about the company's competitive positioning in the market.

Weak Q4FY26 Guidance

Looking ahead, Wipro's guidance for Q4FY26 indicates continued challenges with projected revenue growth ranging from -1.60% to 0.50% quarter-on-quarter in constant currency terms. The company attributes this weak outlook to two primary factors:

Delayed ramp-up of large deals secured in previous quarters
Impact of lower working days during the period

This cautious outlook stands in stark contrast to the more optimistic commentary from large-cap peers regarding AI-led discretionary demand uptick, suggesting Wipro may be facing company-specific challenges beyond broader market conditions.

Revised Financial Projections

ICICI Securities has adjusted its earnings projections to reflect the weaker operating environment. The brokerage cut its EPS estimates by 0-2% for the FY26-28 period, incorporating several negative factors:

Revision Factor	Impact
Weak Q4FY26 Revenue Growth	EPS reduction
D&A Charges from Acquisitions	Margin pressure
Large Deal Investments	Additional costs
Target P/E Multiple	18.00x
December 2027 EPS	₹14.00

The target price of ₹256.00 is based on an 18x price-to-earnings multiple applied to the projected December 2027 EPS of ₹14.00, reflecting a conservative valuation approach given the current uncertainties.

Investment Outlook

Despite maintaining the Hold rating, ICICI Securities' analysis suggests Wipro faces near-term headwinds that may persist into the next fiscal year. The combination of soft deal wins, delayed project ramp-ups, and margin pressures from acquisitions and investments creates a challenging operating environment for the IT services provider.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.15%	-9.33%	-9.42%	-10.26%	-20.22%	+7.67%

Wipro delivered its Q3FY26 financial results, showing steady growth in IT services revenue amid mixed performance across key operational metrics. The technology services company reported results that were largely in line with analyst expectations, though certain areas showed sequential decline.

Financial Performance Overview

The company's Q3FY26 performance reflected moderate growth in core revenue streams alongside stable profitability metrics:

Metric	Q3FY26 Performance	Growth Rate
IT Services Revenue	$2.60 billion	+1.4% QoQ CC
Adjusted PAT	₹34.00 billion	+3.6% QoQ
Adjusted EBIT Margin	16.50%	-
Order Intake	$3.30 billion	-30% QoQ

The IT services revenue of $2.60 billion represented a 1.4% quarter-on-quarter growth in constant currency terms, meeting analyst estimates of 1.5% QoQ growth. This performance indicates steady momentum in the company's core technology services business.

Order Book and Deal Pipeline

Wipro's order intake dynamics presented a mixed picture during the quarter. The company secured total order intake of $3.30 billion, marking a significant 30% decline from the previous quarter. Large-deal total contract value (TCV) stood at $0.90 billion, representing a 6.2% year-on-year decline.

Profitability Metrics

The company maintained healthy profitability levels with adjusted EBIT margin at 16.50%, slightly above the estimated 16.4%. Adjusted profit after tax reached ₹34.00 billion, showing a 3.6% quarter-on-quarter increase while remaining flat year-on-year. This figure excludes a one-time impact related to labor codes amounting to ₹3,028 million.

Analyst Outlook and Rating

Motilal Oswal has maintained its neutral stance on Wipro, setting a target price of ₹275. This target implies a valuation of 20 times the estimated FY28 earnings per share. The brokerage emphasized that further improvement in execution capabilities and stable conversion of deal TCV to revenue will be crucial factors for developing a more constructive investment view.

The research house's cautious approach reflects the need for sustained operational improvements and better deal conversion metrics before upgrading their recommendation on the stock.