Wipro Q3 Earnings: Labour Costs Hit Margins, Guidance & Deals in Focus
Overview
Wipro unveils Q3 FY26 earnings amid concerns over new labour code expenses impacting margins. Investors scrutinize the FY26 revenue guidance, dividend outlook, and a robust $2 billion deal pipeline for signs of growth and execution. Peers like TCS and Infosys have already reported similar pressures.
Stocks Mentioned
Labour Code Headwinds
Wipro announced its third-quarter financial results for fiscal year 2026, with analysts closely watching the impact of newly implemented Indian labour codes. These regulations, effective November 2025, are expected to place significant pressure on the IT major's profit margins. Jefferies estimates a one-time cost impact of 10-20% and a recurring increase of up to 5% in employee expenses due to these codes.
Guidance and Deal Pipeline Watch
The company's outlook for fiscal year 2026 is a key focus for investors. Kotak Institutional Securities projects Wipro's revenue guidance to range between 1.5% and 3.5%, with approximately 2% contribution expected from inorganic growth. The translation of a healthy $2 billion deal pipeline into revenue will be closely monitored as a measure of Wipro's growth execution. Kotak estimates Q3 FY26 revenue at ₹23,701 crore, reflecting a 6% year-on-year increase.
Dividend Expectations
Investors are also awaiting clarity on dividend payouts. Wipro had indicated in its earnings release schedule that it would announce an interim dividend, if any, for FY26. The company did not declare any dividend in the second quarter of the fiscal year.
