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.
On January 14, Infosys reported a Rs 1,289 crore exceptional charge in its December quarter earnings report on account of the statutory impact of new labour codes. India's largest IT services exporter, TCS, on January 12 reported Rs 2,128 crore and HCLTech Rs 956 crore exceptional charges on account of new labour codes.
Meanwhile, Wipro 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.
Also, read: Wipro improves Q4 guidance, projects up to 2% revenue growth
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