Investors Wipe Out CEO Rally Gains for Wipro and LTIMindtree
In a dramatic market reversal, shares of Wipro and LTIMindtree have surrendered massive gains from their CEO tenures within just two trading days. This swift decline highlights deepening troubles in India's information technology sector.
Wipro's Steep Fall After Quarterly Results
Wipro Limited saw its stock plummet by 9.3% over Monday and Tuesday sessions. This drop erased nearly 90% of the gains accumulated since Srinivas Pallia became chief executive in April 2024. Before announcing December-quarter results, the stock had risen 10.16% during Pallia's tenure.
The company reported $2.64 billion in revenue for the quarter, showing a 1.2% sequential increase that beat analyst expectations. However, investors reacted negatively to management's guidance for the fourth quarter.
Three key factors drove the sell-off:
- A tepid growth outlook with projected revenue of $2.64-2.69 billion
- Weak organic growth potentially ranging from -1.6% to 0.5%
- Delayed ramp-ups of large deals won in previous quarters
ICICI Securities analysts noted that Wipro's guidance suggests minimal growth, with the Harman DTS acquisition providing temporary support. Chief Financial Officer Aparna Iyer confirmed during the earnings call that some large deals would take multiple quarters to fully ramp up.
LTIMindtree Also Faces Investor Punishment
Mumbai-based LTIMindtree experienced similar pressure, though to a lesser degree. The company's shares fell 7.3% between Monday and Tuesday morning, wiping out over 25% of gains made since Venu Lambu became CEO in May 2025.
Before its December-quarter results announcement, LTIMindtree shares had risen 26.36% during Lambu's tenure. The company reported $1.21 billion in third-quarter revenue, marking a 2.4% sequential increase and its best third-quarter performance in three years.
Despite this positive result, investors focused on challenges from artificial intelligence adoption. Motilal Oswal Financial Services analysts pointed to AI-led productivity initiatives at large clients affecting near-term growth, particularly within LTIMindtree's top five accounts.
Broader IT Sector Struggles Continue
The pain extends beyond these two companies across India's technology services industry. The Nifty IT index dropped 0.5% to 25,469.45 points as uncertain outlooks from major players weighed on sentiment.
Four of India's largest IT services companies face weaker full-year trajectories compared to last year. Tata Consultancy Services risks its first annual revenue decline since its 2004 listing. Infosys and HCL Technologies anticipate slower growth, while Wipro prepares for a third consecutive year of contraction.
Only Tech Mahindra appears positioned to buck this negative trend. The sector now faces a potential third straight year of sluggish growth as automation, AI-induced pricing pressure, and tariff uncertainty cloud demand visibility.
This market reaction underscores how quickly investor sentiment can shift in the technology sector, particularly when growth projections disappoint even slightly. The simultaneous declines at Wipro and LTIMindtree signal broader concerns about India's IT industry navigating technological disruption and global economic uncertainty.
