Wipro reported an exceptional charge of ₹302.8 crore in the December quarter (Q3 FY26) due to the statutory impact of the new labour codes.
The charge relates to a higher gratuity liability arising from past service costs. The company said the adjustment was recorded as part of compliance with the revised labour rules.
Consolidated net profit for the quarter ended December 31, 2025, was ₹3,119 crore. This was lower by about 4% compared with the previous quarter and 7% year-on-year.
Wipro said earnings were impacted by labour code-related costs and restructuring expenses booked during the quarter.
Adjusted for the labour code impact, net profit for the quarter would have been around ₹3,360 crore, indicating a sequential increase of about 3.5%.
The company also reported restructuring costs of ₹263 crore. These were mainly linked to changes in its Europe operations and its UK-based consultancy arm, Capco.
Revenue from operations increased 3.8% sequentially to ₹23,556 crore. IT services revenue grew 3.3% quarter-on-quarter.
In constant currency terms, IT services revenue rose 1.4% sequentially but declined 1.2% year-on-year. Earnings before interest and tax declined 1.7% from the previous quarter to ₹4,296 crore. IT services operating margin stood at 17.6%.
The rollout of the new labour codes led to significant one-time charges across the IT sector. Tata Consultancy Services (TCS), Infosys and HCLTech together reported exceptional charges of more than ₹4,373 crore during the December quarter. These adjustments contributed to lower reported profits for all three companies in the period.
Total deal bookings during the quarter were $3.3 billion, with large deals accounting for $871 million. On a year-to-date basis, bookings stood at $13 billion, a 25% increase year-on-year. Wipro guided for flat to 2% sequential growth in IT services revenue for the March quarter in constant currency terms.
Wipro added 6,529 employees during the quarter, taking total headcount to 2,42,021. Utilisation, excluding trainees, declined to 83.1% from 86.4% in the previous quarter. Attrition moderated slightly to 14.2%.
Read More: Wipro Q3 FY26 Earnings Results: Revenue at ₹235.6 Billion, Operating Margin Improves to 17.6%!
As of January 16, 2026, 3:30 pm, Wipro share price closed at ₹266.80, a 2.54% increase from the previous close.
The December quarter results show the impact of labour code-related adjustments and restructuring costs on Wipro’s earnings, while revenue growth and deal activity remained steady.
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Published on: Jan 17, 2026, 9:33 AM IST
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