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Over the past four days, Wipro shares have climbed 15%, following the company’s impressive Q3FY25 results
Wipro Share Price Today
Wipro’s share price surged 5% on Thursday, reaching a three-year high of Rs 324.55 during intraday trading on the BSE, amid strong volumes and a positive outlook. The stock surpassed its previous high of Rs 319.95, which was recorded on December 20, 2024. This marks Wipro’s highest level since January 2022, although it had reached an all-time peak of Rs 369.90 on October 14, 2021.
Over the past four days, Wipro shares have climbed 15%, following the company’s impressive Q3FY25 results. The IT services firm’s earnings before interest and tax (EBIT) margin reached a 12-quarter high of 17.5%, reflecting a 70 basis point quarter-on-quarter (QoQ) improvement, driven by enhanced offshoring, employee cost optimization, and greater efficiency in selling, general and administrative expenses (SG&A).
While Wipro’s margin has now hit the management’s target range of 17-17.5% and is expected to stabilize, the company’s Q3 total contract value (TCV) stood at $3.5 billion—down 1.3% QoQ and 7.3% YoY, with large deal TCV at $0.96 billion (down 35% QoQ, but up 6% YoY). Despite this, the management’s guidance for Q4 revenue growth is expected to be between -1% and +1% QoQ, which is slightly softer than anticipated, though it is still within expectations. Notably, Wipro has outperformed the upper end of its guidance in recent quarters.
Nuvama Wealth Management analysts highlighted that Wipro’s mix of a favorable portfolio, the new CEO’s positive momentum, strong margin performance, and attractive valuations (20x FY27 PE) provide a compelling risk-reward proposition. Consequently, the brokerage maintained its ‘Buy’ rating and set a 12-month target price of Rs 350 per share.
Wipro’s Q3 results marked a turning point, as the company exceeded the upper end of its guidance for the first time in over 12 quarters, with EBIT margins reaching the 17.5% target, despite absorbing wage hikes. Wipro also increased its capital allocation from 45-50% of profit after tax (PAT) to over 70%. According to JM Financial Institutional Securities, the company’s outlook promises to sustain the positive momentum.
The company’s Q4 guidance reflects expectations of a stable performance with revenue growth between -1% and +1% QoQ, driven by factors like favorable deal pipelines and a focus on converting those into signed deals. While the BFSI and EMR sectors remain soft, Wipro’s consulting demand has picked up, with Capco deal wins growing by 9% YoY and revenue up 11% YoY.
ICICI Securities noted that Wipro’s deal pipeline remains robust, especially in BFSI and EMR, with large deals driving improvements in average contract value (ACV). The brokerage expressed confidence in the company’s ability to maintain its 17.5% EBIT margin in Q4, although the softer guidance has tempered sentiment for the upcoming quarter.
Elara Capital analysts acknowledged that while Wipro’s TCV has stabilized, recovery is still expected to take time, particularly as conversion to revenue has been slow. Despite these challenges, Wipro’s strong performance and positive outlook position it well in the IT sector, alongside other large-cap IT firms like TCS and Infosys, which have also reported solid Q3 earnings.
Wipro and Tech Mahindra emerged as the top gainers on the Nifty 50 index. Tech Mahindra rose 2.4% to Rs 1,725.10 on the BSE, buoyed by sectoral optimism.
Market analysts highlighted that large-cap IT firms, including Wipro, TCS, and Infosys, have delivered strong Q3 earnings, reflecting the sector’s resilience despite global economic headwinds. Wipro’s steady revenue growth, robust deal pipeline, and strong technical outlook position it favorably as digital transformation initiatives gain momentum globally.
