Wipro Q3 FY26 net profit falls 7% on-year to Rs 3,119 crore; Rs 6 per share interim dividend declared

Wipro Ltd reported a decline in profitability for the fiscal third quarter, with consolidated net profit falling both sequentially and on a year-on-year basis, even as the IT services major delivered modest revenue growth and announced an interim dividend.

The company posted a consolidated net profit of Rs 3,119 crore for the quarter ended December 31, 2025, down 4 percent quarter-on-quarter and 7 percent year-on-year. Earnings were impacted by cost pressures, including expenses linked to labour code-related adjustments, the company said in its press release. “Adjusted for impact of labour code changes, net income for the quarter was Rs 3,360 crore -- an increase of 3.6 percent QoQ and 0.3 percent YoY.

Wipro's revenue from the IT services business stood at Rs 23,378 crore during the quarter, slightly below Street expectations. On a sequential basis, IT services revenue rose 3.3 percent, reflecting steady execution amid a cautious demand environment. In constant currency terms, IT services revenue grew 1.4 percent quarter-on-quarter, while it declined 1.2 percent on-year.

Wipro’s board declared an interim dividend of Rs 6 per share, taking the total payout for the year to about $1.3 billion, according to the company.

Operating performance was mixed. IT services EBIT came in at Rs 3,573.5 crore, below Street estimates, while EBIT margin slipped to 15.3 percent on a reported basis. On a quarter-on-quarter comparison, EBIT declined 5.5 percent and margins contracted from 16.7 percent. However, under IFRS, Wipro reported an IT services operating margin of 17.6 percent, marking a sequential expansion of 90 basis points and a marginal improvement year-on-year, aided by execution discipline and cost optimisation .

Deal activity remained healthy during the quarter. Total deal bookings stood at $3.3 billion, while large deal bookings were valued at $0.9 billion. Operating cash flow was strong at Rs 4,259 crore, equivalent to 135.4 percent of net income, underscoring robust cash generation.

For the March quarter, Wipro guided for IT services revenue in the range of $2.64 billion to $2.69 billion, implying sequential growth of 0 to 2 percent in constant currency terms.

Employee Metrics

India’s fourth-largest IT firm saw an increase of 6,529 employees in the third quarter ended December 31, 2025 (Q3FY26), largely driven by fresher onboarding. The total headcount stood at 2,42,021.

Attrition this quarter moderated marginally to 14.2 per cent from 14.9 per cent last quarter.

Earlier, the management had said that for FY26, though Wipro aims to hire a similar number as FY25 from campuses, the company will take a call after observing the current business environment which has been reeling under macroeconomic uncertainties.

In comparison, Tata Consultancy Services’ (TCS) headcount declined by over 11,000 in Q3 while Infosys’ headcount increased by 5,043 employees.

Meanwhile, Wipro’s utilization rate, excluding trainees, was at 83.1 percent in Q3, as compared to 86.4 percent in Q2.

Labour Code Impact

Wipro, India's fourth-largest IT firm, reported a Rs 302.8 crore exceptional charge in its December quarter earnings (Q3 FY26) on account of the statutory impact of new labour codes.

The adjustments for labour codes represent an increase in gratuity liability arising out of past service cost.

"Our labour code impact is perhaps amongst the least compared to the industry, because we have been gradually and consistently trying to come closer to the labour code, so we were quite well prepared… I don't anticipate any continuing impact," Aparna C. Iyer, Chief Financial Officer of Wipro, said on January 16 while addressing the post-result press conference.

Collectively, Tata Consultancy Services (TCS), Infosys and HCLTech have incurred over Rs 4,373 crores in exceptional charges pertaining to the implementation of the new labour code. This had led to steep double-digit decline in profits for the country's three biggest IT services giants in the third quarter ended December 31.

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