Not seeing dramatic uptick in discretionary spending, says Wipro management
This story was originally published at 19:15 IST on 16 October 2025
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--Wipro: Tariff uncertainties affected consumer, energy sectors
--Wipro: Tariff uncertainties affected manufacturing sector
--Wipro: Continue to see momentum in BFSI segment
--Wipro: See pressure to be there on operating margin
--Wipro: Harman Digital Transformation acquisition expected to close in Q3
--Wipro: Better clarity from US clients expected in January
--Wipro: Not seeing dramatic uptick in discretionary spending by clients
--Wipro: Not decided on wage hikes in H2 amid uncertain macros
--Wipro: Hirings to continue to be demand based
--Wipro: Q2 PAT affected by tax rate normalisation from lower tax rate in Q1
--Wipro: Looking to ramp up deals among top 100 clients
--Wipro: Ramp up of deals among top 100 clients will take few quarters
By Rajesh Gajra and Shakshi Jain
NEW DELHI - Wipro Ltd. is not seeing a "dramatic uptick" in discretionary spending, the management Thursday said at a press conference after the company released its September quarter earnings. But the clients' discretionary spend is "now moving more" and particularly into artificial intelligence-related projects, said Srini Pallia, chief executive officer and managing director at Wipro.
He said the company will get to have a better view on discretionary client spending in Dec-Jan as clients finalise their budgets for 2026. In the case of US-based clients, the clarity on overall spending will come in January as most of them "will go in for a budgeting process" in the December quarter, Pallia said.
In the September quarter, Wipro recorded large deal bookings of $2.9 billion, with overall deal bookings at $4.7 billion. The overall deal bookings in the June quarter was $5 billion, of which $2.7 billion were large deals.
Wipro's Chief Financial Officer Aparna Iyer said in the press conference, nine of the 13 large deals the company booked in the September were from the top 100 clients list. "There is a substantial portion of renewal in some of these bookings, but there is also an element of new and an opportunity to expand," she said.
Iyer said the company is currently in a phase where it can look at ramping deals with its existing top 100 clients. But "some of these deals, given the nature, will take more than a few quarters to ramp up," she said.
The company saw revenue momentum continuing in the September quarter among clients in the banking, financial services, and insurance sector, Pallia said. This was on the back of the sector's clients "prioritising on cost optimisation, vendor consolidation, legacy modernisation, and...scaled deployment of agentic AI," he said. But tariff uncertainties continued to impact the consumer, energy, and manufacturing sectors, leading the customers from these sectors to re-evaluate their supply chains, he said.
On margins, CFO Iyer said as the company continues to invest in growth, it does see pressure to be there on its operating margin, but the endeavour would be to maintain the operating margin around the current level. In a post-earnings release, the company guided for a revenue growth in constant currency terms in the December quarter to be in the range of (-)0.5% to 1.5% on a quarter-on-quarter basis. This guidance, according to the release, did not include "any expected revenue from the recently announced acquisition of Harman Digital Transformation Solutions," the company said. Iyer said in the press conference this acquisition was expected to close during the December quarter.
On likely wage hikes in Oct-Mar, the management said the macro environment remained uncertain and the company has not taken a call yet on this matter. But in terms of hiring, particularly from campuses, the company will look at demand-based hiring. In the September quarter, the company on boarded around 2,900 freshers.
On the sequential decline of 2.5% in the company's consolidated net profit in the September quarter to INR 32.5 billion, the management referred to tax increase as being a key contributing factor. It said the company had a lower effective tax rate in the trailing quarter which got normalised in the September quarter. "So, it is not a reflection of operations," it said. Tax costs rose 11% on quarter to INR 10.2 billion in the September quarter.
Wipro's consolidated revenue from operations rose 2.5% on quarter to INR 227 billion. On Thursday, shares of the company closed at INR 253.81, up 1.4%, on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
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