$WIPRO When the Numbers Tell Two Different Stories

$WIPRO Revenue up 10.6 per cent year on year to Rs 24,479 crore. Net profit up 0.6 per cent YoY to Rs 3,352 crore. Large deal bookings up 12.9 per cent sequentially to $1.63 billion across 13 contracts. Interim dividend declared at Rs 2 per share. Record date: July 27. So far, so decent. Now the other side. IT services operating margin fell 130 basis points sequentially to 16 per cent — the lowest in 15 quarters. Core IT services revenue declined sequentially. Q2 guidance came in below street expectations. Jefferies cut revenue and profit estimates for FY27 to FY29 by 2 to 5 per cent. The stock fell over 2 per cent on Friday even as the broader Nifty IT index surged 1.7 per cent. That divergence — Wipro falling while peers rallied — says everything about how the market is currently reading the Q1 FY27 print. The 52-week range of Rs 168.60 to Rs 278.50 tells a longer-term story of deep value destruction. At current levels, the stock trades closer to its floor than its ceiling. Nomura flagged that a 5 per cent dividend yield may provide a technical floor for the stock. Management believes AI transformation projects will eventually create new demand. But eventually is doing a lot of heavy lifting in that sentence. One to watch closely as Monday's broader IT sentiment is shaped by how Reliance results land over the weekend.