Wipro's US-listed shares recover part of early drop after weak revenue outlook

what happened

Wipro's receipts trading in the US dropped as much as 4.5% at one point before a portion of the decline was recouped, CNBC-TV18 reported. At last check they changed hands at $1.78, down 1.1%. The move came after the Bengaluru-based IT services firm published September-quarter numbers and a forecast calling for sequential revenue between a 1.5% decline and a 0.5% rise in constant currency during the third quarter of the current fiscal year.

Constant-currency revenue was flat in the September quarter, while CNBC-TV18's poll had expected a 0.75% fall. In dollar terms, revenue reached $2,611.5 million, 0.1% below June's $2,614.5 million, and landed above the $2,592.2 million the poll pointed to. In rupees, sales climbed 0.8% from the prior quarter to ₹24,667 crore, a touch under the ₹24,733 crore estimate.

The EBIT margin widened to 16.5% from 16% in June, in line with the poll. Net profit slipped to ₹3,199.7 crore from ₹3,352 crore, marginally below the ₹3,248.6 crore CNBC-TV18 had forecast. On the NSE, the stock closed Thursday at ₹174.05, up 1.83%. It has gained roughly 2.4% over the past month but is still down 34.9% so far this year.

why it matters

For investors following Indian IT exporters, the guidance range is the key figure: it spans a slight contraction to modest growth, so the market reaction will hinge on how quickly revenue picks up toward year-end. The steep year-to-date decline shows that sentiment has already weighed heavily on the shares.

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