Business EconomyPosted at: Oct 16 2025 9:35PM


Wipro Q2 net marginally higher amid one-off costs

Bengaluru, Oct 16 (UNI) Wipro Limited today reported a mixed performance for the July–September quarter (Q2 FY26), showing sequential growth in revenue but a marginal decline in profitability, even as bookings, cash flows, and operational efficiency remained strong.
The company's consolidated net profit stood at Rs 3,246.2 crore, up from Rs 3,208.8 crore in the same period last year, marking a 1.2 percent year-on-year rise. Sequentially, however, profit fell 2.5 percent.
Revenue from operations rose 1.7 percent year-on-year to Rs 22,697.3 crore and 2.5 percent over the previous quarter, reflecting steady demand across key business verticals.
Wipro attributed the sequential decline in profit to one-off items, including a client insolvency provision and normalization of tax rates. "The 3% decline in net profit quarter-on-quarter is due to one-off items and does not reflect operational inefficiency," CEO and Managing Director Srini Pallia said replying to a series of UNI queries, adding that the company's core business remains operationally sound.
The IT services operating margin, adjusted for the customer bankruptcy provision, stood at 17.2 percent, expanding 0.4 percent year-on-year. Operating cash flows remained strong at 103.8 percent of net income, underscoring disciplined execution and cost management. "Our operating margins have held steady within a narrow band despite macro challenges," he said.
Pallia said. "We are balancing investments for future growth while maintaining operational efficiency."
Large deal bookings for the first half of FY26 crossed USD 9.5 billion, supported by renewals and new strategic wins across banking, healthcare, retail, and telecom sectors. "Our bookings remain robust, with strong year-on-year growth. The sequential dip is not due to pricing pressure," Pallia said. He said the quarter included two major renewals, which sustained client relationships and created opportunities for organic growth.
Pallia added, "Our revenue momentum is strengthening, with Europe and APMEA returning to growth, and our operating margins holding steady. Our strategy is clear: remain resilient, adapt to global shifts, and lead with AI. I am excited to bring Wipro Intelligence to our clients, helping them scale confidently in an AI-first world."
Attrition for the quarter stood at 14.9 percent on a trailing 12-month basis, the lowest in recent quarters, reflecting improved employee retention. Wipro reaffirmed its localization push in the United States, with nearly 80 percent of its US employee base now comprising local hires.
"Approximately 80% of our US employee base are local hires, reflecting our purposeful approach to workforce localization," the company said. It added that recent changes to the H1B visa program are expected to have minimal business impact.
Despite a challenging macroeconomic backdrop, Wipro maintained margin stability and solid cash generation. The company said it will continue to focus on converting its robust pipeline into revenue while maintaining tight margin discipline. "We are balancing investments in growth with sustaining margins within a narrow band," management said.
For the quarter ending December 31, 2025, Wipro expects IT services revenue to be in the range of USD 2,591 million to USD 2,644 million, translating to sequential growth of -0.5 percent to 1.5 percent in constant currency.
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