- Shocking disclosure in Wipro’s third quarter report
- Impact of New Labor Code on IT Sector
- A blow to giants including Wipro
Wipro Net Profit Fell: Leading IT services company Wipro has reported a seven per cent decline in consolidated net profit to Rs 3,119 crore for the October-December quarter of financial year 2025-26. The company said the decline was primarily due to a one-time temporary provision of Rs 302.8 crore due to the implementation of the new labor code. Wipro’s net profit for the same quarter was Rs 3,353.8 crore. Strong revenue, pressure on profitability. According to Wipro, the company’s operating income rose 5.5 percent to Rs 23,555.8 crore in the third quarter of the current fiscal, from Rs 22,318.8 crore in the same period last year.
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On a quarterly basis, net profit declined by 3.9 percent, while revenue increased by 3.7 percent. These figures show that despite cost pressures, the company’s business performance is strong at the revenue level. Focus on AI strategy. Srini Pallia, Chief Executive Officer (CEO) and Managing Director, Wipro said, “In the third quarter, we achieved growth broadly in line with our expectations. As artificial intelligence (AI) becomes a strategic imperative, Wipro Intelligence plays a unique role.”
He explained that the company has strengthened its AI-enabled platform and solutions, expanded AI-based services through Wings and Vega, and further expanded its global innovation network. The impact of the Labor Code was seen in the IT industry. The impact of the new labor code was not limited to Wipro.
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This effect was also reflected in the quarterly results of its other major competitors. 2,128 crore in the third quarter at TCS. Infosys posted a loss of Rs 1,289 crore. HCLTech made a one-time provision of approximately Rs.719 crores. While the new labor code may put short-term pressure on IT companies’ profits, revenue growth and AI-focused policies point to the sector’s long-term strength. Profitability can be expected to increase with cost stabilization in the coming quarters.
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