Wipro's Q3 Performance Dips Amid New Labour Codes Impact

Wipro reports a 7% drop in net profit for Q3 FY26, primarily due to a Rs 302.8 crore impact from new Labour Codes. Despite a 5.5% revenue increase, profits fell. AI-driven solutions contributed positively, with CEO Srini Pallia highlighting strategic growth areas. Competitors like TCS and Infosys faced similar impacts.

IT services giant Wipro announced a 7% decline in its consolidated net profit for the third quarter of FY26, attributing the loss primarily to a one-time impact of Rs 302.8 crore from the implementation of new Labour Codes. The company's net profit fell to Rs 3,119 crore, down from Rs 3,353.8 crore in the equivalent period last year.

Despite the profit setback, Wipro's revenue from operations saw a 5.5% increase, reaching Rs 23,555.8 crore compared to Rs 22,318.8 crore a year ago. On a quarter-on-quarter basis, the company's profit fell by 3.9%, while revenue rose by 3.7%.

Wipro's CEO and MD, Srini Pallia, expressed optimism about the company's trajectory, highlighting that the adoption of AI-driven solutions has contributed to growth. Larger rivals such as TCS, Infosys, and HCLTech also experienced significant impacts due to the Labour Codes. This impact ranged from Rs 719 crore to Rs 2,128 crore, as disclosed by the companies.

(With inputs from agencies.)