Wipro reported better-than-expected Q3FY25 results, surpassing market estimates, which led to an 8.33% rally in its shares, peaking at Rs 305.35. The IT Services revenue showed a marginal 0.1% growth quarter-on-quarter, though it saw a 0.7% year-on-year decline in constant currency (CC) terms. This performance exceeded both market expectations and Wipro's own guidance.
The company's Ebit margin improved by 70 basis points to 17.5%, beating expectations and signaling robust operational efficiency. Total contract value (TCV) came in at $0.96 billion, showing a 36% decline from the previous quarter, but reflecting a 6% growth year-on-year.
Despite a softer Q4FY25 revenue growth guidance of between -1% to 1% quarter-on-quarter in constant currency, this was largely in line with expectations. Analysts at Nuvama, who had upgraded Wipro to 'Buy' in November 2024, reaffirmed their stance, citing an improved portfolio mix and strong margin performance. They also revised their FY25E and FY26E estimates upward by 5% and 2%, respectively. The stock price target remains at Rs 350, based on a 25x FY27 PE multiple.
