Wipro Limited has incorporated a new step-down subsidiary in the United States to strengthen its global IT services operations. The company announced the formation of Wipro Business Services LLC, which was incorporated on January 20, 2026, with the parent company receiving official intimation on January 21, 2026.

Corporate Structure and Ownership

The new subsidiary operates under Wipro's existing corporate structure, with specific ownership and control arrangements designed to support the company's international expansion.

Business Operations and Services

Wipro Business Services LLC will operate in the Information Technology sector, focusing on comprehensive service delivery to clients across multiple industries. The entity has been established to provide end-to-end information technology services as part of Wipro's global operations strategy.

The subsidiary's business portfolio encompasses several key service areas:

• IT consulting and strategic advisory services
• Application development and maintenance solutions
• Cloud migration and managed services
• Cybersecurity solutions and risk management
• Data analytics and business intelligence services
• Business process outsourcing operations

Regulatory Compliance

The incorporation follows standard regulatory procedures, with Wipro Limited fulfilling its disclosure obligations under SEBI regulations. The company reported that no specific governmental or regulatory approvals were required for this incorporation, indicating a streamlined establishment process.

Strategic Implications

This incorporation represents Wipro's continued focus on expanding its global footprint and enhancing service delivery capabilities in key international markets. The establishment of Wipro Business Services LLC provides the company with additional operational flexibility in the United States, enabling more direct client engagement and service delivery in one of its most important markets.

The step-down subsidiary structure allows Wipro to maintain full operational control while optimizing its corporate framework for international business operations. This approach supports the company's broader strategy of providing digital transformation solutions and comprehensive IT services to clients across diverse industries globally.

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:

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:

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.