BENGALURU, INDIA: Shares of Wipro declined on Friday after the company reported quarterly earnings below analysts' expectations and issued a cautious revenue forecast, adding to concerns about slowing growth in India's information technology sector.

The stock fell during trading after investors reacted to weaker-than-expected financial performance and subdued guidance for the upcoming quarter.

Revenue Outlook Signals Continued Challenges

Wipro forecast that revenue for the September quarter could range from a 1.5% decline to 0.5% growth in constant-currency terms. The guidance reflects continued uncertainty in global technology spending as businesses remain cautious about new investments.

Industry analysts noted that slower client decision-making and delayed project execution continue to weigh on the company's performance.

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Demand Environment Remains Weak

India's IT services industry has been dealing with subdued demand as global clients reduce discretionary technology spending. Companies are also adapting to increased automation and artificial intelligence, which has changed the pace of new project investments.

Analysts said Wipro continues to face execution challenges despite securing major contracts, making it difficult to convert deal wins into meaningful revenue growth.

Brokerages Cut Price Targets

Following the quarterly results, several brokerage firms lowered their price targets for Wipro, citing weaker earnings visibility and concerns about future growth.

Market analysts also pointed to a decline in total deal wins compared with the previous year, indicating continued pressure on business momentum.

Peers Show Stronger Performance

While Wipro faced a negative market reaction, some industry peers performed better. Tech Mahindra reported stronger-than-expected quarterly revenue and saw its shares rise, supported by improved deal wins and operational execution.

Analysts believe execution, timely project ramp-ups and sector-specific demand continue to differentiate the performance of India's leading IT companies.

Focus Shifts to Growth Recovery

Investors will closely monitor Wipro's ability to improve execution, expand client spending and benefit from future technology investments as the global IT market gradually recovers.

The company's performance over the coming quarters is expected to play a key role in determining whether it can narrow the growth gap with its major competitors.