Wipro Unveils India-Made Driverless Car, But Stock Stuck at ₹240 Hold Rating

Wipro’s October 27 unveiling of an indigenous driverless car prototype in Bengaluru might seem like a headline-grabber, but for traders, the question is simple: does this move the needle on a stock that’s been stuck in the mud? With analyst consensus at “Hold” and price targets suggesting minimal upside, this R&D flex arrives at a time when Wipro’s core IT services revenue is declining and margins remain compressed. The real trading angle here isn’t autonomous vehicles—it’s whether this innovation story can shift sentiment on a fundamentally challenged stock.

What Happened: Six Years in the Making

Wipro, alongside the Indian Institute of Science (IISc) and RV College of Engineering, unveiled WIRIN (Wipro-IISc Research & Innovation Network), a driverless car prototype engineered specifically for India’s chaotic road conditions—potholes, stray animals, and congested traffic. The project, which began in 2019, integrates AI-driven navigation, cameras, sensors, and 5G-based vehicle-to-everything (V2X) communication. A viral video showing a spiritual leader riding calmly in the autonomous vehicle during its campus debut generated social media buzz. While the prototype marks a significant milestone for India’s autonomous vehicle ambitions, commercial readiness is still months away, with researchers focusing on road-condition mapping and real-world safety systems.

The collaboration represents a blend of Wipro’s engineering capabilities, IISc’s research prowess, and RVCE’s innovation—a model for corporate-academic partnerships in next-generation tech. However, this remains a prototype in an experimental phase, not a revenue-generating product line.

Stock Performance & Analyst View: No Love from the Street

Wipro’s stock hasn’t seen a meaningful reaction to the driverless car news, trading around ₹240.85 with limited momentum. The analyst community remains skeptical. According to TipRanks (October 2025), the consensus rating is “Hold” with 13 Buy, 2 Hold, and 7 Sell ratings. The average price target of ₹253 implies just 5% upside from current levels, with Trendlyne reporting a similar target of ₹259.18 (7.69% upside). Motilal Oswal (October 17, 2025) maintains a “Sell” rating with a ₹200 target, citing limited margin expansion and persistent revenue headwinds. MarketBeat notes a “Reduce” consensus from six brokerages, with CLSA downgrading from “Outperform” to “Hold” on October 20, 2025. For U.S.-listed ADR investors, the consensus is “Sell” with a -2.77% downside projection.

The stock’s muted response reflects a harsh reality: autonomous vehicle R&D doesn’t translate to near-term earnings, especially when Wipro’s Q2 FY26 results (October 16, 2025) missed expectations with $0.03 EPS versus $0.04 consensus and revenue of $2.56 billion.

What This Means for Traders: Innovation Doesn’t Pay the Bills

For traders, this driverless car prototype is a sideshow, not the main event. Wipro’s core IT services revenue declined 0.8% sequentially in Q4 FY25, with management guiding for a -3.5% to -1.5% degrowth in Q1 FY26 due to macroeconomic uncertainties and cautious client spending. The autonomous vehicle project, while impressive from a tech standpoint, sits within Wipro Engineering Edge—a non-core segment that won’t move revenue metrics materially in the next 12-24 months.

Here’s the trading reality: sentiment remains bearish to neutral. The ₹240-₹250 range has acted as resistance, and without a catalyst to break through, downside risk toward Motilal Oswal’s ₹200 target is real if Q3 results disappoint. Conservative traders should stay on the sidelines until there’s evidence of IT services stabilization or margin expansion. Aggressive traders might consider a speculative entry only if the stock breaks above ₹260 with volume, signaling a sentiment shift.

Key risks include continued revenue declines in core IT services, failure to convert large deal bookings into revenue growth, and global macro headwinds dampening client spending. The autonomous vehicle story, while positive for long-term brand positioning, won’t offset these fundamental challenges. Next catalyst to watch: Wipro’s Q3 FY26 earnings on January 15-16, 2026. If IT services revenue stabilizes and margins hold above 17%, the stock could find support. If not, expect further downgrades.

The Bigger Picture: AV Market Growth vs. Wipro’s Core Business

India’s autonomous vehicle market is projected to grow from $2.6 billion in 2024 to $23.3 billion by 2033 (CAGR of 24.3%), driven by urbanization, government EV initiatives, and smart mobility investments. Globally, the AV market is expected to hit $4,450 billion by 2034. Wipro’s involvement positions it alongside competitors like Tata Elxsi, Cognizant, and Tech Mahindra in the automotive tech space. However, the path to commercialization is fraught with risks: cybersecurity threats, regulatory hurdles, public skepticism, and the high cost of R&D. For Wipro, autonomous vehicle capabilities could eventually differentiate its engineering services, but the timeline is long and uncertain.

The challenge for traders is that Wipro’s stock valuation hinges on its $2.5 billion quarterly IT services business, not experimental AV prototypes. Until the core business shows growth, innovation headlines won’t drive sustained stock performance.

The Trader’s Takeaway

Wipro’s driverless car is a PR win, not a trading catalyst. With analyst consensus at “Hold,” minimal upside to price targets, and core IT services under pressure, there’s no compelling reason to buy here. Wait for the January earnings report. If IT services revenue stabilizes and management guides positively, the stock could find footing. Until then, risk-reward favors staying out or maintaining a tight stop-loss below ₹230 if already positioned. Innovation is impressive, but traders need earnings growth—and Wipro hasn’t delivered that yet.

Disclaimer: This blog has been written exclusively for educational purposes and does not constitute investment advice or personal recommendations. The author is not SEBI-registered as an investment advisor. Recipients should conduct their own research and consult a qualified, SEBI-registered investment advisor before making any investment decisions. Investments in the securities market are subject to market risks; read all related documents carefully before investing.