April 17 (Reuters) - Shares of Wipro dipped 3% after its weak first-quarter revenue forecast reinforced concerns over slowing growth and persistent margin pressure for India's fourth-largest IT firm.
The stock was the top loser on the IT index, which was down 0.4%, and the second-biggest drag on the benchmark Nifty 50.
Wipro said it expects June‑quarter revenue to range from a 2% sequential decline to flat growth, citing muted demand as its U.S. banking and financial clients curb spending in an uncertain economic environment. The forecast followed a lacklustre fourth-quarter, where the company missed analysts' expectations for both profit and revenue.
The weak outlook overshadowed its record share buyback plans, with Wipro's U.S.-listed shares declining nearly 5% overnight.
Dolat Capital analysts said the forecast underscores persistent organic growth challenges, while Ambit Capital noted revenue weakness is becoming entrenched, with fiscal 2027 potentially marking the fourth straight year of decline - setting it apart from its top peers in the IT sector.
Margin pressures are also likely to persist, Emkay Global Financial Services said, citing the impact of salary hikes, integration of low-margin acquisitions and competitively priced large deals.
Wipro reported deal wins of $3.5 billion in the January-March quarter, up from a six‑quarter low of $3.33 billion in the previous three months, but still below the $4 billion recorded a year earlier.
However, Ambit said strong deal bookings are yet to translate into revenue, with a rising share of large, long‑tenure contracts delaying conversion and weighing on near‑term growth.
The stock has shed over 22% so far this year, making it the worst performer on the IT index amid concerns of AI-led disruption and demand uncertainties.
The index is down 16.4% year-to-date, compared with the Nifty's 7.4% drop.
(Reporting by Kashish Tandon in Bengaluru; Editing by Sonia Cheema)
