Srini Pallia
| Photo Credit:
ANI
Wipro Ltd., Azim Premji-promoted tech firm based in Bengaluru, has on Friday presented a mixed performance during the third quarter of FY26 characterised by a dip in net profit, due to one-time labour code implementation cost impact of over ₹300 crore, and a single-digit growth in revenue.
In Q3, the company reported a 7% decline in net profit at ₹3,119 crore as against ₹3,353.8 crore it posted in the corresponding period a year ago. It’s revenue rose 5.5% year-on-year to ₹23,556 crore over ₹22,318.8a year ago. Company’s IT services segment revenue grew $2,635.4 million, an increase of 1.2% QoQ and 0.2%YoY. It also reported total deals booking worth $3.3 billion in the quarter.
Srini Pallia, CEO and Managing Director, Wipro, in his commentary on the quarter said, growth was broad-based in the quarter which was marked by two milestones: Wipro turned 80 and its stock market listing turned a quarter-century-old. The company saw good traction in U.K and Western Europe markets, BFSI saw strong growth with ramp ups and new deals while Capco revenue was impacted by furlough, he said.
He further said, “The pipeline is strong with a combination of large and smaller deals. More AI is coming into the deals as clients are reimagining the process and rewriting their applications and also relook at customer experience and employee experiences. AI is becoming right and centre of every opportunity,’’ he said.
According to Mr.Pallia, 4 out of the 5 sectors fired well and across all markets this quarter.Technology and telecom are looking at reimagining AI clearly and there are opportunities in healthcare and lifesciences around AI. The company has strong pipelines across 5 sectors and all markets. “Demand outlook pipeline is very strong while discretionary spend is something we are watching,’’ he added.
Earlier, on the broader market environment, Mr. Pallia said, Wipro was positioning for an AI first world.“Across our client landscape, one thing is very clear: organisations are reshaping priorities as AI influences how they plan, invest, and operate. In fact, AI is now a standing board-level mandate led by CEOs who recognise its ability to transform business models, unlock productivity, and, of course, create lasting competitive advantage,’’ he said.
Shubham Rathore, Principal Analyst,Gartner said, despite a challenging demand environment, Wipro’s strong cash conversion and operating cash flows at 135% of net income and resilient margin performance highlight disciplined execution.
“As clients focus on operational efficiency and scalable technology adoption, Wipro’s continued investments in automation, AI, and cloud services position it to support evolving client needs and drive long-term value in a competitive market,’’ Mr. Rathod said adding Gartner forecast global enterprise IT spending to increase by over 10% in 2026, largely driven by investments in AI-optimized infrastructure and digital transformation.
Wipro’s CFO, Aparna Iyer said, “Our IT services operating margins at 17.6% expanded both sequentially and on a year-on-year basis. This is our best margin performance in last few years.’’
Wipro board has declared an interim dividend of ₹6 per share which will take the total payout for the year to $1.3 billion, she added.
On revenue guidance, Wipro said it expected revenue from IT services to be in the range of $2,635 million to $2,688 million by March 31, 2026. This translates to sequential guidance of 0% to 2.0% in constant currency terms.
Wipro onboarded over 5000 freshers so far, in FY26, against its target of 10,000 at the beginning of the year. Saurabh Govil, CHRO said, recruitments from campuses were muted and he also indicated that hiring this year has been project-based and skill-based, reflecting a cautious approach undermacroeconomic uncertainties. As on December 31, 2025, the company had 242,021 employees, a net addition of 6,529 and it recorded a utilisation of 83.1% andattrition of 14.2%.
Published – January 16, 2026 08:15 pm IST
