Why Is Wipro Share Price Falling? Key Reasons & Share Price Target

Mon Mar 30 2026

Wipro Limited (NSE: WIPRO) — India’s fourth-largest IT services company — has had one of the most painful runs in the Indian IT sector in 2026. The stock touched a 52-week low of ₹188.25 in March 2026, down from a peak of ₹311, representing a decline of approximately 40%. For a company with $11 billion in annual revenue and operations in 50+ countries, the Wipro share price fall has surprised many investors who expected India’s IT giants to be more resilient.

The reasons behind the Wipro share price falling are multi-layered: weak constant currency revenue growth, cautious Q4 guidance, a slowdown in large deal wins, US tariff risks targeting IT services, and Jefferies adding Wipro to its ‘Underperform’ list. This article covers each reason and provides a data-backed view of the Wipro share price target.

Table of Contents

About Wipro

Click Here – Get Free Investment Predictions

Wipro Limited was founded in 1945 by M.H. Premji (originally as a vegetable oil company) and transformed into a global IT services leader under Azim Premji. Headquartered in Bengaluru, Wipro offers digital transformation, cloud, cybersecurity, data analytics, and AI consulting services to clients across BFSI, healthcare, manufacturing, retail, and technology sectors. The company is listed on NSE and BSE, with market cap of approximately ₹2,62,320 crore as of December 2025.

Wipro operates in over 50 countries, serving Fortune 500 clients. CEO Srinivas Pallia, who took over in 2024, has been pushing an AI-first strategy. Despite solid operating cash flows ($474 million in Q3 FY26) and a healthy dividend yield, weak growth guidance has overshadowed the positives.

Why Is Wipro Share Price Falling? Key Reasons

Tap to Access Best Research Pieces on Univest

1. Weak Q3 FY26 Guidance Disappoints Market

The biggest trigger for Wipro’s share price fall was its Q4 FY26 guidance, issued after Q3 FY26 results in January 2026. The company guided IT services revenue of $2,635 million to $2,688 million — implying sequential growth of just 0-2% in constant currency terms. Markets had expected a stronger guidance, and the muted outlook sent the stock down over 7% in a single session.

The gap between reported revenue growth (5.5% YoY in INR terms) and weak constant currency performance (-1.2% YoY) highlighted that rupee depreciation, not organic growth, was flattering the numbers. Investors focused on the constant currency reality.

2. Large Deal Bookings Decline

Total deal bookings for Q3 FY26 were $3.3 billion — down 5.7% YoY in constant currency. Large deal bookings were even weaker at $0.9 billion, declining 8.4% YoY. A slowing deal pipeline directly threatens future revenue visibility, and markets responded accordingly. Deal wins are a leading indicator of revenue 4-6 quarters ahead, so weakness here signals prolonged pressure.

3. Net Profit Declines Despite Revenue Growth

Wipro’s Q3 FY26 net profit stood at ₹3,145 crore — down 3.9% QoQ and 7% YoY. The decline in profit despite marginal revenue growth points to margin compression. Operating margin challenges, partly from salary hikes and investments in AI capabilities, have reduced Wipro’s profitability even as the topline grows slowly.

4. US Tariff Risks and IT Tax Uncertainty

There are unconfirmed reports that the US is considering taxes on foreign remote workers — a policy that could directly impact Indian IT companies like Wipro, which deploy thousands of visa workers in the US market. While not confirmed, the uncertainty has created a significant overhang on the entire Indian IT sector, with Wipro particularly affected given its US revenue concentration.

Additionally, US tariffs on Indian goods — the backdrop of global trade tensions — create a risk-off sentiment toward Indian equities broadly, with IT stocks among the first to see FII outflows.

5. Jefferies Adds Wipro to Underperform List

In March 2026, Jefferies added Wipro to its ‘Underperform’ list, citing slow deal ramp-ups and weak growth outlook. The brokerage’s calculations suggested Wipro’s stock was pricing in INR revenue CAGR of 4-6% over FY26-36 — below the CAGR Wipro achieved over FY16-26. This is a structural downgrade, not just a near-term call, and further dampened institutional appetite.

With Nifty IT declining approximately 20% in a month by late February 2026 and Wipro underperforming even that weak sector, the stock entered a doom loop of FII outflows, momentum selling, and analyst downgrades.

6. Broad Sector Weakness: AI Disruption Fear

Indian IT stocks face a structural challenge from AI — the fear that generative AI tools will reduce the demand for outsourced software development, testing, and maintenance. While this is a longer-term structural risk, it has been priced into IT valuations in 2026 with significant urgency. Wipro, like its peers, is investing heavily in AI — but the market is concerned about revenue displacement before AI-driven growth kicks in.

Wipro Latest News That Impacted the Stock

January 19, 2026: Q3 FY26 results — IT services revenue ₹23,555.8 crore (5.5% YoY); net profit down 7% YoY. Stock falls 7%.
January 2026: Q4 FY26 guidance issued at 0-2% constant currency growth — lower than expected.
February 24, 2026: Nifty IT index falls ~3%; Wipro down 1.73% on the day; sector down ~20% in a month.
March 9, 2026: Wipro IT stocks outperform broader market marginally; IT stocks briefly stable.
March 11, 2026: Wipro enters deal with TruStage to transform its retirement services business — positive news but insufficient to reverse trend.
March 13, 2026: Jefferies adds Wipro to ‘Underperform’ list citing slow deal ramp-ups and weak growth.
March 17, 2026: Stock hits 52-week low of ₹188.25. Trading below all key moving averages.

Financial Performance Analysis

Metric	Q3 FY26	Q3 FY25	YoY Change
Revenue (₹ Cr)	23,555.8	22,319	+5.5%
Net Profit (₹ Cr)	3,145	3,379	-7%
Large Deal TCV ($B)	0.9	0.98	-8.4%
Operating Margin (%)	17.5%	17.0%	Stable
CMP (₹)	191	311	-39%
52-Week Low (₹)	188.25	—	—

Wipro’s operating cash flow remains healthy at $474 million, and attrition has fallen to 14.2%, reducing hiring costs. The dividend yield at ₹188 is approximately 5.64% — attractive for income investors. For deep analysis, explore the

Univest Screener

Technical Signals: What the Charts Are Saying

Wipro is trading at approximately ₹191, below all key moving averages (5-day, 20-day, 50-day, 100-day, 200-day). The RSI is at approximately 39 — in selling territory but not yet deeply oversold. The 52-week high was ₹311; the 52-week low is ₹188.25. Key support: ₹185-190; resistance: ₹205-215.

A ‘death cross’ — the 50-day DMA crossing below the 200-day DMA — has formed, a technically bearish signal typically followed by extended underperformance. Recovery above ₹220 would be the first technical signal of a trend reversal.

Download the Univest iOS App or the Univest Android App

Market Sentiment & Institutional Positioning

FII outflows from Indian IT stocks have been persistent in 2026. Wipro’s ROE remains robust at 16.48%, and debt-to-equity is low — but these fundamentals have not been enough to prevent the selloff driven by macro concerns. Attrition at 14.2% is a positive, indicating workforce stabilisation, but deal booking declines mean future revenue visibility is limited.

Future Outlook: Can Wipro Recover?

Wipro has built a genuine AI practice and is investing in generative AI tools for clients across BFSI and healthcare. The company’s deal pipeline in managed services remains steady, and its global delivery model allows flexible cost management. Dividend yield of ~5.6% at current levels provides income support.

The counterargument: Wipro has consistently underperformed TCS and Infosys in revenue growth over the past five years. Its 5-year CAGR of -9.24% tells a story of structural underperformance. An AI-first strategy requires execution, and Wipro’s track record on capturing industry tailwinds has been mixed.

Wipro Share Price Target

Subscribe to Univest Pro for Premium Stock Research and F&O Setups

Short-Term Target (3-6 Months)

Conservative: ₹190-205, contingent on any positive Q4 FY26 deal announcement. If Q4 guidance comes in above 2% constant currency growth, the stock could rally toward ₹220.

12-Month Analyst Target

Analyst consensus 12-month target is approximately ₹260, per multiple forecasting frameworks — implying ~36% upside from current ₹191. Jefferies, post-downgrade, is more cautious. Infosys-aligned brokerages who have downgraded the sector broadly see moderation to ₹220-250 as more realistic.

Long-Term Target (2027-2028)

Prediction models suggest Wipro could trade near ₹275-285 by late 2026 under moderate conditions, and ₹328-339 by end of 2027, based on steady business growth and sector normalisation. These assume a recovery in global IT spending and no further US tariff escalation. Track the live target on the

Univest Screener

Conclusion

Wipro shares are falling because the market has repriced the entire Indian IT sector lower on weak growth visibility, large deal slowdown, and AI disruption fears — with Wipro specifically hurt by its 7% net profit decline, Jefferies’ Underperform addition, and proximity to its 52-week low. The 12-month analyst target of ~₹260 implies meaningful recovery potential, but patience and monitoring of quarterly deal wins are essential.

This article is for informational purposes only. Please conduct your own research and consult a SEBI-registered financial advisor before making any investment decisions.

FAQs

Why is Wipro share price falling in 2026?

Wipro shares are falling due to weak Q4 FY26 guidance (0-2% constant currency growth), a 7% YoY decline in Q3 net profit to ₹3,145 crore, large deal bookings declining 8.4%, and Jefferies adding the stock to its Underperform list. Broader IT sector headwinds — including AI disruption fears, US tariff uncertainty, and FII outflows from tech stocks — have amplified the fall.

What is Wipro share price target for 2026?

Multiple analyst frameworks suggest a 12-month target of approximately ₹260 for Wipro, with a range of ₹220-280. At the current price of ~₹191, this implies 15-45% upside depending on which framework you follow. Jefferies is more bearish. The stock needs confirmed deal momentum and constant currency growth above 2% to re-rate.

Is Wipro stock a good buy at current levels?

At 5.6% dividend yield and near 52-week lows, Wipro offers income appeal for long-term investors. However, the lack of growth catalysts in the near term makes it a ‘value trap’ risk. Most analysts recommend waiting for Q4 FY26 results and deal pipeline updates before initiating new positions.

Why did Jefferies add Wipro to underperform?

Jefferies added Wipro to its Underperform list in March 2026 citing slow deal ramp-ups, a weak medium-term growth outlook, and earnings risk. The brokerage’s analysis suggested the stock was pricing in revenue CAGR of just 4-6% over the next decade — below the growth Wipro achieved in the past decade, and below what peers like Infosys and TCS can deliver.

What is Wipro’s market cap and PE ratio?

Wipro’s market cap is approximately ₹2,10,000 crore at the current price of ₹191 (late March 2026). The P/E ratio is approximately 18-20x trailing earnings — below its 5-year historical average of 22-25x, suggesting moderate value. ROE is 16.48%, which is healthy for an IT services company.

What is Wipro’s dividend yield?

Wipro has a high dividend yield of approximately 5.6% at the current price of ₹188-191. This is significantly above the Nifty 50 average dividend yield of ~1.3% and comparable to fixed deposit rates, making it attractive for income-focused investors willing to hold through the earnings uncertainty.

What are the recovery catalysts for Wipro?

Key recovery triggers: a larger-than-expected deal win announcement, positive Q4 FY26 results with >2% constant currency growth guidance for FY27, revival in US corporate IT spending, clarity on the US tariff/tax policy for IT workers, and a sector re-rating if AI transition fears moderate. A CEO-driven transformation announcement or a large M&A deal could also provide a catalyst.

How does Wipro compare to TCS and Infosys?

Wipro has consistently underperformed TCS and Infosys on revenue growth, margin expansion, and stock returns over 5 years. Its 5-year stock CAGR is approximately -9%, while TCS and Infosys have delivered positive CAGRs. However, at a 20x P/E versus TCS at 25x and Infosys at 22x, Wipro trades at a discount — partly deserved and partly an opportunity for patient investors.

Investments in securities are subject to market risk. Please read all related documents before investing. This content is for educational purposes only and does not constitute investment advice.