After Tata Consultancy Services (TCS), IT services major Wipro too has shied away once again in giving clarity on rolling out wage hikes this fiscal year, citing macroeconomic uncertainties.
Speaking at the company’s first quarter earnings conference, Saurabh Govil, Chief HR Officer, Wipro said, “We haven’t decided on the hikes yet. It is too early. The macro environment, the current demand, supply situation – all of this will play in factors. Closer to the date, we will take a call and communicate.”
Wipro gave wage hikes ahead of time in September last year. And that was done within a year of rolling out wage hikes in December 2023, Govil had said in April.
This comes at a time when the IT services industry in grappling with tough business environment due to the US president Donald Trump’s trade tariff impositions, and other geopolitical tensions that’s keeping customers wary of their tech budgets.
Last week, TCS management had a similar commentary after deferring its wage hike cycle by at least another quarter. TCS usually starts its increment cycle form April 1 onwards.
As of Q1, Wipro saw a marginal reduction of 114 employees sequentially, as the IT services company continues to reassess its lateral and campus hiring models amid tough business environment.
Sequentially, the attrition rate increased to 15.1 percent for the last-twelve-month (LTM) basis. In Q4FY26, attrition stood at 15%. The total headcount stood at 233,232.
Q1 earnings
For Q1FY26, Wipro reported an 11 percent rise in consolidated net profit at Rs 3,330 crore, above the Bloomberg poll estimate of Rs 3,249 crore.
The firm's consolidated revenue from operations rose marginally to Rs 22,135 crore, also above analyst estimates of Rs 22,078 crore. In constant currency terms, revenue decreased 2.3 percent YoY.
Wipro maintained its revenue growth guidance for the second quarter and has now guided for revenue growth of -1 percent to +1 percent.
Operating margin increased by 80 bps YoY to 17.3 percent. Sequentially, margin declined by 20 bps.
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