Wipro share price jumps 6% after Q2 despite profit dip and 59% fall in large deals
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Wipro shares rose up to 6.5% on October 16, 2026, after Q2 profit fell 1.4% to Rs 3,201 crore and large deal bookings dropped 58.6%; brokerages stay cautious.
What Happened
Wipro share price jumped on Friday, October 16, 2026, the day after the IT company reported its results for the July to September quarter, even though its profit slipped and its new deal bookings fell sharply. On the National Stock Exchange the stock rose as much as 6.5 per cent to Rs 185.45 from the previous close of Rs 174.05, and was still trading at Rs 184.07, about 5.8 per cent higher, in the early afternoon. Wipro reported a net profit of Rs 3,201 crore for the second quarter of the 2026-27 financial year, down 1.4 per cent from a year earlier and 4.5 per cent from the previous quarter, while revenue rose 9.1 per cent year on year to Rs 24,753 crore. Large brokerages stayed cautious, with Jefferies keeping an Underperform rating and Motilal Oswal a Neutral rating, both with price targets below the day's trading price.
Key Facts
- Wipro shares rose up to 6.5 per cent on the NSE on October 16, 2026, to Rs 185.45.
- Q2 FY27 net profit was Rs 3,201 crore, down 1.4 per cent year on year.
- Revenue rose 9.1 per cent year on year to Rs 24,753 crore.
- Total contract bookings were $2.595 billion, down 22.9 per cent from the previous quarter in constant currency.
- Large deal bookings fell 58.6 per cent to $674 million from $1.626 billion; management said paperwork on two deals was delayed and should be signed in the third quarter.
- Revenue guidance for the October to December quarter is a change of minus 1.5 per cent to plus 0.5 per cent in constant currency.
- Jefferies raised its target to Rs 155 from Rs 150 with an Underperform rating; Motilal Oswal has a Rs 170 target and a Neutral rating.
Why It Matters
The stock's move shows how markets often react to expectations rather than to the headline numbers. When Wipro's quarter came in only slightly below forecasts, with profit about 2.9 per cent and revenue about 0.5 per cent short of estimates according to one analysis, buyers stepped in. The rally also came on a strong day for Indian IT shares, which led the Sensex 414 points higher to 74,729 on Friday.
The worrying number is bookings. New contract wins are the best guide to future revenue for an IT services firm, and a fall of nearly 23 per cent in total bookings, with large deals down by more than half, suggests slower growth ahead. Management's explanation, that two deals were delayed only by paperwork and should be signed next quarter, will be tested in January. The guidance band for the December quarter, which runs from a small decline to a small rise, is the same as the one given for the September quarter, so the company is not signalling a pick-up yet.
That is why brokerages remain sceptical. Jefferies' target of Rs 155 implies a fall of about 16 per cent from Rs 184.99, the price at which the stock traded mid-morning, and Motilal Oswal's Rs 170 target implies about 8 per cent downside. For investors, the question is whether Friday's move was relief that things were not worse, or the start of a recovery.
| Measure | Q2 FY27 |
|---|---|
| Net profit | Rs 3,201 crore (down 1.4% year on year) |
| Revenue | Rs 24,753 crore (up 9.1% year on year) |
| Total bookings | $2.595 billion (down 22.9% quarter on quarter) |
| Large deal bookings | $674 million (down 58.6%) |
| Q3 guidance | -1.5% to +0.5% in constant currency |
Impact
Short-term: The stock may stay volatile as investors weigh the rally against brokerage warnings. Updates on the two delayed deals will be closely watched.
Long-term: Wipro's ability to win large contracts again will decide how fast it can grow. Weak bookings now could weigh on revenue through 2027.
Who is affected: Wipro's shareholders, including retail investors and mutual funds, its employees, especially as the company's headcount fell in the quarter, and investors tracking the wider IT sector.
Key Takeaway
Wipro's share price jumped about 6 per cent on October 16, 2026, as results were less bad than feared, but a sharp fall in deal bookings keeps brokerages cautious.
Questions and Answers
Why did Wipro share price rise after Q2 results?
The stock rose up to 6.5 per cent on October 16, 2026, because the quarter was only slightly below expectations and IT shares rallied that day, even though profit fell 1.4 per cent year on year and bookings dropped.
How much profit did Wipro make in Q2 FY27?
Wipro reported a net profit of Rs 3,201 crore, down 1.4 per cent from a year earlier, on revenue of Rs 24,753 crore, up 9.1 per cent.
What did brokerages say about Wipro shares?
Jefferies kept an Underperform rating with a Rs 155 target, and Motilal Oswal kept a Neutral rating with a Rs 170 target, both below the price at which the stock traded on October 16.
What is Wipro's revenue guidance for the next quarter?
Wipro expects revenue for the October to December 2026 quarter to change by between minus 1.5 per cent and plus 0.5 per cent in constant currency.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
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