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Informist, Wednesday, Jan. 14, 2026

By Arya S. Biju

MUMBAI – With the ramping up of deals won in the first half of the current financial year and consolidation of its recent acquisition of the digital transformation solutions business unit of HARMAN International, Wipro Ltd. is expected to report a low-single-digit sequential rise in its net sales for the December quarter, the highest in nearly three years. The company's bottom line is also expected to recover in the reporting quarter after declining sequentially for the past two quarters, according to brokerages.

Wipro's consolidated net profit for the December quarter is expected to rise over 3% sequentially to INR 33.49 billion, according to the average of estimates from 17 brokerages. This follows an over 2% and 7% sequential decline in the bottom line reported by the company in the previous two quarters, respectively. However, on a year-on-year basis, the company's bottom line is expected to decline 0.1%, after rising for six consecutive quarters.

India's fourth largest IT company by market capitalisation is expected to report an over 3% sequential rise and an around 5% on-year rise in its consolidated revenue to INR 233.88 billion, according to the average of 17 estimates. This will mark the highest sequential rise in net sales reported by the company in 12 quarters and the highest on-year rise in 10 quarters.

JM Financial Institutional Securities Pvt. Ltd. has the highest estimate of INR 36.33 billion for the company's net profit for the quarter while Emkay Global Financial Services Ltd. has the highest estimate for net sales at INR 237.49 billion. DRChoksey FinServ Pvt. Ltd. has the lowest estimate for both net profit and net sales at INR 31.82 billion and INR 226.31 billion, respectively.

In constant currency terms, the company's revenue is expected to grow 0.5–1.1% sequentially, estimates from 10 brokerages showed. For the December quarter, Wipro had guided for a (-)0.5% to 1.5% growth in revenue in constant currency terms from its IT services business. This implies revenues of $2.59 billion to $2.64 billion from the business. This guidance, however, does not include any expected revenue from the acquisition of Digital Transformation Solutions of HARMAN, Wipro said in a statement accompanying its September quarter results. IT services contributed 99.8% to the company's total sales during the September quarter.

Most brokerages expect the company to guide flat to 3.5% revenue growth in constant currency terms for the March quarter. Meanwhile, JM Financial expects it to guide for (-)0.5% to 1.5% growth given the lower number of working days in the quarter.

 
While most brokerages expect Wipro's earnings before interest and tax margin to remain largely flat or to decline on a sequential basis, four of them -- HSBC Global Research, JM Financial, Nirmal Bang Equities Pvt. Ltd., and Prabhudas Lilladher Pvt. Ltd. -- expect it to improve. "EBIT margins are expected to expand by 50 bps QoQ and come in at 16.9%. Margin expansion will be due to reversal of one-time bankruptcy provision of a customer for $13.1 billion," Nirmal Bang said in a note. The depreciation of the rupee against the dollar is also expected to support the margin, JM Financial said.

"We expect EBIT margin to improve by 10 bps q-o-q. INR depreciation should result in 30–40 bps of margin cushion. Also, Wipro had a 40 bps provision for a client bankruptcy in 2QFY26, which will not occur in 3Q," HSBC Global said in a note. However, the margin expansion is expected to be limited due to costs related to the acquisition of the business unit of HARMAN International, seasonal furloughs, and lower working days, the brokerage added. The company's margin for the quarter is also expected to be impacted by ramping up of large and mega deals which are margin dilutive at initial stages, according to brokerages.

JM Financial expects Wipro's total deal contract value for the reporting quarter to be in line with the previous quarters. On the other hand, Nirmal Bang Equities expects it to moderate sequentially with no mega deal signings announced so far in the quarter compared to the two mega deals announced in the first half of the financial year. Wipro had reported a large deal total contract value of $2.7 billion and $2.9 billion in the June quarter and September quarters, respectively. The focus will now be on the translation of total contract value to revenues, Kotak Securities said. 

Wipro will announce its earnings for the December quarter Friday. Market participants will watch out for the company management's commentary on demand across its key verticals, updates on US-based clients' 2026 technology budgets, and on any signs of recovery in discretionary spending. Updates on the pace of adoption of generative artificial intelligence and its deflationary impact on services spending will also be watched for, according to broking firms.

Updates on its H-1B visa dependency and steps planned to mitigate potential impact from the fee increase and change in the H-1B visa allocation process will be monitored by the Street. Further, updates on ramping up of the recently won large deals, deal pipeline, hiring plans, and on a potential share buyback will also be watched.

Wednesday, shares of Wipro ended at INR 260.20 on the National Stock Exchange, down 1.5% from the previous close. The stock has risen 2.5% since the company announced its September quarter earnings on Oct. 16. The stock is, however, down around 30% from its all-time high of INR 369.93, hit on Oct. 14, 2021.

Of the 20 research reports on the company available with Informist, eight have a 'hold' or equivalent recommendation on the stock with an average target price of INR 272, which is around 5% higher than the closing price Wednesday. Of the remaining 12, eight have 'sell' or equivalent recommendation and four have a 'buy' or equivalent call on the stock. The average target price of the 'sell' recommendation is INR 251, indicating a near 4% downside from the closing price Wednesday, and that of the 'buy' calls is INR 297, indicating an over 14% upside to Wednesday's closing price.

Following are the December quarter earnings estimates for Wipro from 17 brokerage firms in descending order of the estimate of net profit in INR million:
 

Brokerage	Net Sales	Net Profit	Revenue (mln $)	?IT margin
JM Financial Institutional Securities Pvt Ltd	235,778	36,333	--	--
YES Securities (India) Ltd	233,928	34,913	--	--
Kotak Securities Ltd	237,010	34,861		16.7
Prabhudas Lilladher Pvt Ltd	235,800	34,600	2,635	16.9
Nirmal Bang Equities Pvt Ltd	234,890	34,331	2,639	16.9
HSBC Global Research	234,059	33,817	2,636	16.5
Indsec Securities and Finance Ltd	232,100	33,500	2,600	16.8
Nuvama Wealth Management Ltd	236,041	33,222	2,638	16.6
Emkay Global Financial Services Ltd	237,487	33,163	--	--
Nomura Equity Research	232,946	33,027	2,610	16.7
Motilal Oswal Financial Services Ltd	227,000	32,900	2,635	16.4
Sharekhan Ltd	234,412	32,897	2,634	16.3
Dolat Capital Market Pvt Ltd	234,913	32,887	2,631	--
Elara Securities (India) Pvt Ltd	233,577	32,549	2,616	--
HDFC Securities Ltd	235,670	32,320	2,632	16.7
IDBI Capital Market Services Ltd	234,070	32,255	2,630	16.5
DRChoksey FinServ Pvt Ltd	226,313	31,816	--	--
Average	233,882.00	33,493.59	2,627.97	--

 

End

 

US$1 = INR 90.29

 

Edited by Ashish Shirke

 

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