Wipro takes Rs 263-crore hit for Europe, Capco restructuring

Wipro takes Rs 263-crore hit for Europe, Capco restructuring

• Wipro took a Rs 263-crore restructuring charge in Q3FY26, focusing on Europe, Capco.
• Restructuring completed; no further related costs expected, says CFO Aparna Iyer
• Wipro's Q3 net profit fell 4 percent QoQ, revenue rose 3.3 percent sequentially

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India’s fourth-largest information technology (IT) services firm Wipro booked a Rs 263-crore one-time restructuring charge in the December quarter (Q3FY26) to complete a clean-up exercise focused on Europe and its Capco business.

The restructuring programme is now “completed” and the charge has been booked with no further related costs expected, Chief Financial Officer Aparna Iyer said during the company’s Q3 FY26 earnings briefing.

The impact was visible in net income and earnings per share, though Wipro excluded the charge from its IT services operating margins.

“A restructuring exercise that was completed during the quarter. The impact of this is about 263 crores. I would like to confirm that we have now completed the restructuring that we want to and do not anticipate any further charges,” Iyer said while addressing the press conference.

IT services operating margin improved to 17.6 percent in the quarter, one of Wipro’s stronger performances in recent years.

Providing more detail on the restructuring, Chief Human Resource Officer Saurabh Govil said Wipro had to “look at some obsolete skills”, with the exercise focused on Europe and Capco as part of what the company described as a technology-led realignment.

The shift reflects Wipro’s broader push away from legacy capabilities and towards higher-growth offerings such as AI, engineering and data-led services.

The restructuring and cost clean-up come as Wipro pushes an “AI-first” strategy under its Wipro Intelligence framework, spanning industry platforms, AI-driven delivery models and a wider innovation network.

Wipro said it is pairing the restructuring with aggressive workforce upskilling and university partnerships in AI and cybersecurity as it builds what it called an “AI-plus-human” workforce to tap higher-value transformation spending.

Meanwhile, Wipro’s Noida-headquartered rival HCLTech also announced that it will restructure its operations, including a planned reduction in headcount outside India over the next few quarters, the management said on July 14.

This followed the move by India’s largest IT services firm, TCS, which said it will reduce its workforce by over 12,000, or about 1 percent, of its workforce, which was exclusively reported by Moneycontrol on July 27, 2025.

Wipro: Q3FY26 Performance

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.