BENGALURU: Wipro on Friday reported a decline in profitability for the December quarter, with consolidated net profit falling both sequentially and on a year-on-year basis due to the new labour code costs, even as the company's revenue rose.
The company posted a consolidated net profit of Rs 3,119 crore in Q3 FY26, down 4% QoQ and 7% YoY. Wipro said earnings were impacted by cost pressures, including expenses linked to labour code-related adjustments and restructuring. Adjusted for the impact of labour code changes, net income for the quarter stood at Rs 3,360 crore, an increase of 3.6% QoQ.
Revenue from the IT services business came in at Rs 23,378 crore during the quarter, rising 3.3% sequentially. The operating margin rose 90 basis points QoQ to 17.6%. For the March quarter, Wipro guided a sequential growth of 0 to 2% in constant currency terms for its IT services revenue.
“In Q3, we delivered broad-based growth in line with our expectations. As AI becomes a strategic imperative, Wipro Intelligence is emerging as a differentiator and contributed to several wins this quarter," said Srini Pallia, CEO and Managing Director of Wipro.
During the quarter, Wipro incurred Rs 3,028 crore towards additional gratuity expenses following the implementation of India’s new labour code, along with restructuring costs of Rs 263 crore. The company said the restructuring exercise has now been completed, and it does not expect further charges related to this.
The Total deal bookings for the quarter stood at $3.3 billion against $4.7 billion in the previous quarter, and large deal bookings were valued at $0.9 billion against $2.8 billion in Q2.
"If you look at TCV from a year-to-date perspective, we are at Rs 13 billion, which is 25% up year-on-year. From that perspective, I think the trend of our pipeline continues," said Pallia.
The company’s board declared an interim dividend of Rs 6 per share.
Headcount at the end of the quarter stood at 242,021 employees against 235,492. This addition was, however, mostly due to the recent acquisition of HARMAN's Digital Transformation Solutions.
Meanwhile, voluntary attrition over the trailing 12 months was at 14.2%, against 14.9% reported in the previous quarter. Further, the company plans to hire 2,000-2,500 freshers in Q,4 taking the total freshers count to 7,500 for FY26 against the guided 10,000.