Shares of a leading IT firm in India fell nearly 8% in early morning trading today, reaching **₹513.

25 per share**.

This decline followed disappointing June quarter results that fell short of investor expectations.

In response to the weak financial performance, several brokerage firms have reaffirmed their sell ratings on Wipro.

- **Nomura** has maintained its 'Sell' rating while raising its target price to **₹600 per share**.

- **Citi** has also maintained its 'Sell' rating but increased its target price to **₹495 per share**, up from the previous target of **₹455 per share**.

- **Morgan Stanley** maintained its 'Underweight' on Wipro, raising its target price to **₹459 per share** from **₹421 per share**.

- Domestic brokerage firm **Nuvama Institutional Equities** continues to anticipate that Wipro will underperform peers, while its inexpensive valuation and high dividend yield limit the downside potential.

It retains its 'Hold' rating on the stock with a price target of **₹530 apiece**.

- **Motilal Oswal** cut its FY25E EPS by 1% and kept FY26E EPS broadly unchanged after its 1Q print.

It reiterated its 'Neutral' rating, as it views the current valuation as fair.

Its price target implies **20x FY26E EPS**.

- **Kotak Institutional Equities** has also retained its 'Sell' rating with a face value of **₹460 apiece**.

On Friday, after market hours, the company reported its gross revenue for the quarter at **$2,635.

8 million**.

This represents a **1.

1% decline quarter-over-quarter (QoQ)** and a **3.

8% decrease year-over-year (YoY)**, marking the sixth consecutive drop in top-line revenue.

The generated revenue of **$2,626 million**, down **1.

2% QoQ** and **4.

9% YoY** (in constant currency terms, -1% QoQ and -4.

9% YoY).

Within this segment, the **Banking, Financial Services, and Insurance (BFSI)** sector grew by **0.

3% QoQ**, maintaining positive momentum for the second quarter due to increased deal flow.

However, other sectors such as **energy and utilities, manufacturing, healthcare, and communications** saw declines of **7%, 4.

2%, 2.

6%, and 1.

2% QoQ**, respectively.

The company has observed renewed growth potential in the consumer and communications sectors.

Revenue in the **Americas 1** region increased by **0.

4% QoQ** in constant currency, while **Americas 2** experienced a decline of **0.

7% QoQ**.

**Capco** achieved a growth rate of **3.

4% QoQ**, with expectations for continued momentum.

Conversely, **Europe** and the **Asia-Pacific, Middle East, and Africa (APMEA)** regions faced softness, with decreases of **1.

4% and 4.

2% QoQ**, respectively.

Management maintains flat for the September ending quarter at **$2,600 million to $2,652 million**.

This translates to sequential guidance of **(-)1.

0% to +1.

0% in constant currency terms**.

Despite falling revenues sequentially, the company has managed to maintain its operating margin.

The **Earnings Before Interest and Taxes (EBIT)** margin of Wipro increased marginally to **16.

5% in Q1 FY25** from **16.

4% reported in the March quarter of FY24**.

According to Nuvama, the margin improvement was driven by better utilization, productivity in fixed-price projects, and overhead optimization.

Management anticipates these factors will continue to contribute to margin enhancements.