Wipro shares experienced a sharp decline of 9% in early trading on Monday following a downgrade from Morgan Stanley and concerns over the company's fourth-quarter guidance. The IT services major closed at ₹242.80, reflecting investor concerns about the company's near-term growth prospects.

Morgan Stanley Downgrade Details

Morgan Stanley downgraded Wipro from "equalweight" to "underweight" and significantly reduced its price target. The brokerage's revised outlook reflects concerns about the company's execution capabilities and competitive positioning.

The brokerage noted that while Wipro had previously shown improvement in deal wins and margin performance, helping narrow the price-to-earnings multiple gap with peers over the past 12 months, recent developments suggest this convergence may reverse.

Weak Q4 Guidance Triggers Concerns

Wipro's guidance for the fourth quarter has disappointed analysts and investors alike. The company projected constant currency revenue growth significantly below market expectations, indicating challenges in converting pipeline deals into actual revenue.

Morgan Stanley highlighted that this weaker guidance suggests slower deal conversion rates and reduced growth visibility for the upcoming financial year compared to industry peers. The brokerage expects this performance gap to widen the price-to-earnings multiple discount that had recently narrowed.

Broader Analyst Sentiment

Jefferies maintained its cautious stance on Wipro, keeping its "underperform" rating with a ₹220 price target. The brokerage cited softer deal bookings and delays in project ramp-ups as key factors behind the disappointing guidance. Additionally, Jefferies expects margin pressure to continue due to recent acquisitions and the gradual scaling of new deals.

The overall analyst community remains divided on Wipro's prospects. Among 47 analysts covering the stock, the distribution reflects mixed sentiment:

• Buy ratings: 11 analysts (23.40%)
• Hold ratings: 21 analysts (44.68%)
• Sell ratings: 15 analysts (31.91%)

Market Performance

Wipro's stock performance reflected the negative sentiment across markets. The company's American Depositary Receipts (ADRs) had already declined 7.40% in Friday's trading session on Wall Street, foreshadowing Monday's domestic market reaction. The 9.30% decline in Indian markets brought the stock price to ₹242.80, aligning closely with Morgan Stanley's revised price target.

Wipro Limited has filed auditor's reports for its standalone and consolidated financial statements for the quarter ended December 31, 2025, with stock exchanges including the National Stock Exchange of India Limited, BSE Limited, and NYSE New York. The reports were submitted on January 16, 2026, and include Unique Document Identification Numbers (UDIN) as required by regulatory compliance.

Auditor's Opinion and Compliance

Deloitte Haskins & Sells LLP, the company's chartered accountants, provided unqualified opinions on both standalone and consolidated financial results. The auditor confirmed that the financial statements comply with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and conform to Indian Accounting Standard 34 "Interim Financial Reporting" (Ind AS 34).

Regulatory Framework and Standards

The auditor's reports confirm that the financial statements present a true and fair view of the company's financial position for the three and nine months ended December 31, 2025. The standalone financial results follow Indian Accounting Standards, while the consolidated results are prepared under both Indian Accounting Standards (Ind AS 34) and International Accounting Standards (IAS 34) as issued by the International Accounting Standards Board.

The audit was conducted in accordance with Standards on Auditing specified under Section 143(10) of the Companies Act 2013. The auditor maintained independence in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India and fulfilled all ethical responsibilities during the audit process.

Management and Board Responsibilities

The reports outline that Wipro's Board of Directors holds responsibility for preparing and presenting financial results that provide accurate financial information. This includes maintaining adequate accounting records, implementing internal financial controls, and ensuring compliance with applicable accounting principles and regulatory requirements.

The Board of Directors is also responsible for assessing the company's ability to continue as a going concern and overseeing the overall financial reporting process. For consolidated results, the respective boards of subsidiary companies share similar responsibilities for their entities' financial reporting.

Audit Process and Methodology

Deloitte Haskins & Sells LLP conducted comprehensive audit procedures to obtain reasonable assurance about the financial statements' accuracy. The audit process included identifying and assessing risks of material misstatement, evaluating internal financial controls, and reviewing accounting policies and estimates made by the Board of Directors.

The auditor evaluated the overall presentation, structure, and content of both standalone and consolidated financial results to ensure they represent underlying transactions and events accurately. For consolidated results, the audit covered financial information from all entities within the Wipro group as listed in the accompanying notes.

Filing and Availability

The auditor's reports with UDIN numbers have been filed with all relevant stock exchanges where Wipro shares are listed. Company Secretary M Sanaulla Khan digitally signed the submission letter on January 16, 2026. The reports are also available on the company's official website at www.wipro.com for stakeholder access and transparency.