Wipro Profit Dips 7% Amid Cost Pressures, Revenue Sees Modest Rise

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AuthorIshaan Verma|Published at:
Wipro Profit Dips 7% Amid Cost Pressures, Revenue Sees Modest Rise
Overview

Wipro's Q3 FY26 profit fell 7% to ₹3,119 crore due to a one-time provision. Revenue grew 5.5% year-on-year to ₹23,556 crore. The IT services operating margin expanded sequentially to 17.6%, marking a positive operational efficiency trend for the company. An interim dividend of ₹6 per share was declared.

Wipro Profit Dips 7% Amid Cost Pressures, Revenue Sees Modest Rise

Wipro reported a 7% year-on-year decline in consolidated net profit for the third quarter of fiscal year 2026, with earnings attributable to equity holders falling to ₹3,119 crore from ₹3,354 crore in the prior year period. The IT services major announced its results on Friday, showing a sequential profit drop of 3.9%.

Despite the profit decline, gross revenue saw a 5.5% increase, reaching ₹23,556 crore compared to ₹22,319 crore in the same quarter of fiscal year 2025. Revenue for the IT Services segment grew 1.2% sequentially in dollar terms, totaling $2,635.4 million.

One-Time Provision Impacts Net Income

The company's reported earnings were affected by a one-time provision of ₹302.8 crore related to the implementation of new Labour Codes by the Indian government. Adjusted for this exceptional item, Wipro's net income for the quarter was ₹3,360 crore, representing a 0.3% increase year-on-year and a 3.6% rise quarter-on-quarter.

Adjusted Earnings Per Share (EPS) remained flat year-on-year at ₹3.21.

Margin Expansion Signals Efficiency Gains

A key positive takeaway from the quarter was the improvement in operational efficiency. Wipro's IT services operating margin expanded by 90 basis points sequentially to 17.6%. Chief Financial Officer Aparna Iyer described this as the company's "best margin performance in the last few years."

The company secured total bookings valued at $3.34 billion during the quarter. Large deal bookings amounted to $871 million, a moderation of 8.4% year-on-year in constant currency terms. Wipro announced it had secured 12 major deal wins, including a significant transformation mandate from a North American furnishings manufacturer.

Future Outlook and Shareholder Returns

For the quarter ending March 31, 2026, Wipro projects its IT Services business revenue to be between $2,635 million and $2,688 million, indicating a sequential growth of 0% to 2.0% in constant currency.

The board of directors has declared an interim dividend of ₹6 per equity share. As of December 31, 2025, Wipro's total headcount was 242,021, with a voluntary attrition rate of 14.2% on a trailing 12-month basis.

The shares of Wipro closed 2.54% higher at ₹266.80 on the National Stock Exchange on January 16, 2026.

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