Wipro’s shares soared by about 8% on Monday, marking their best day in nearly four years, after the Indian IT giant signaled a revival in demand. The company exceeded third-quarter profit estimates and projected up to 1% sequential revenue growth for the current quarter, a significant improvement from the previous quarter’s stagnation. CEO Srinivas Pallia noted that discretionary spending is gradually returning following the macroeconomic challenges of 2024.
The optimism around Wipro mirrors the outlook of its larger peers, TCS, Infosys, and HCLTech, as the $254 billion Indian IT services sector recovers from a prolonged slowdown. Analysts pointed to an 11% rise in revenue from Wipro’s banking, financial services, and insurance (BFSI) segment as a sign of improving spending patterns. The company’s shares were among the top gainers on the Nifty 50 index, and at least eight brokerages upgraded their ratings, while 16 raised their price targets.
Additionally, Wipro’s operating margin hit a three-year high of 17.5%, driven by strong deal execution, according to analysts at Asian Market Securities. While the company expects revenue for the current quarter to range between a 1% decline and a 1% increase, its improving financials and deal momentum indicate a positive outlook for 2025.
