Wipro Stock Jumps Over 6% On Back Of Strong Q2 Results

Wipro's stock soared over 6% in early trading on Friday, buoyed by strong Q2 results that amplified gains for a second consecutive day. The shares reached ₹177.53, up from Thursday's closing price of ₹174.05. Despite this recovery, the IT services giant's shares have plummeted 34.9% this year, contrasting with a 12% decline in the Nifty 50 index. Wipro's market capitalization now sits at around ₹1.72 lakh crore.

The company reported a consolidated net profit of ₹3,200.6 crore for the September quarter, a modest 4.5% drop from the previous quarter's ₹3,352 crore. However, revenue from operations grew by 1.1% sequentially to ₹24,752.7 crore, narrowly beating analysts' expectations. Despite earnings falling short of forecasts, Wipro's operating margin improved by 50 basis points to 16.5%, compared to 16% in the prior quarter.

Operating cash flow reached a robust ₹5,304.8 crore, representing 165.8% of quarterly net income. However, weak deal bookings and cautious guidance for the next quarter cast a shadow over the positive results. Total contract bookings fell 22.9% sequentially to $2.595 billion in constant currency terms, with large deal bookings down 58.6% to $674 million.

For the upcoming October-December quarter, Wipro anticipates IT services revenue between $2,571 million and $2,625 million, indicating a growth range from a 1.5% contraction to a 0.5% increase.

Wipro's CEO and Managing Director, Srini Pallia, expressed optimism about strategic investments starting to bear fruit. He emphasized stronger client engagement and opportunities in large transformation projects, driven by the company's consulting-led, AI-powered strategy. However, investors will now closely watch whether the margin improvements and new business opportunities translate into sustained revenue growth.