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Informist, Friday, Jan. 16, 2026

By Astha Oriel and Narayana Krishna

MUMBAI/HYDERABAD - IT services major Wipro Ltd. expects strong momentum in its deal pipeline, both large and small, despite a sequential decline in the December quarter of the financial year 2025-26, according to the company's top management. The deal momentum is clearly shifting towards artificial intelligence-led transformation, the company said adding that more and more AI deals are adding to the overall order pipeline.

"AI is becoming right and centre. Every opportunity that we have in the pipeline, it's going to be AI first," Srini Pallia, chief executive officer and managing director, Wipro said on Friday in a press conference after announcing the company's December quarter results.

Wipro's total deal bookings declined to $3.34 billion for the December quarter, as against $4.69 billion in the September quarter. The company's large deals were at $871 million in the latest quarter, lower than the $2.85 billion, which the company reported in the September quarter.

The country's fourth-largest IT company by market capitalisation, missed street estimates, and reported a 4% quarter-on-quarter and 7% on-year decline in consolidated net profit at INR 31.19 billion. Analysts estimated a consolidated net profit of INR 33.49 billion. The company's revenue from operation, however, grew 4% sequentially and 7% on-year at INR 235.56 billion, beating analysts' estimates. Analysts had expected the company to report a consolidated net revenue of INR 233.88 billion. 

Despite a fall in its total deal bookings in the December quarter, the company expects to get more clarity on discretionary spends by clients after the end of January. The company's management sees IT services revenue in the March quarter growing 0-2% in the constant currency terms.

Across regions, the company's revenue from Americas 1 operations grew around 2% sequentially and 3% on year in constant currency terms. Americas 1 includes the entire business of Latin America and certain sectors in the US such as communication, media and information services, software and gaming, new-age technology, healthcare, and consumer goods.

The company's revenue from operations in Europe grew over 3% sequentially, but fell around 5% on year in constant currency terms. The company's sales in the Asia Pacific, West Asia, and Africa grew 2% on quarter and 7% on year in constant currency terms. However, the company's revenue from Americas 2 fell around 1% sequentially and over 5% on year in constant currency terms. Americas 2 includes the entire business in Canada and banking, and financial services, energy, manufacturing and resources, capital markets and insurance, and hi-tech sectors in the US.

"Americas 2 typically has sectors that are impacted by furloughs. Quarter three is a seasonally weak quarter, and therefore is impacted by furloughs. Other than that, our EMR performance has been quite soft, which is also part of the America's two market," said Pallia.

Despite this, the company expects demand to be very strong across regions and verticals. While geopolitical conditions continue to be an uncertainty, it is not impacting the company's clients, Pallia pointed out. For the March quarter, the focus would be on execution, winning the deals that are in the pipeline and quickly ramping them up, Pallia said, adding that the company will not enter any new sector.

Wipro's peers such as Infosys Ltd. and Tata Consultancy Services Ltd. are looking at data centers as the new sector to grow. The company views global capability centres as a new horizontal opportunity and plans to partner them and help build them for its clients, Pallia said.

"It's more about the services and the software component of it (global capability centres), not so much on the hardware aspect of it. That's where we're going to focus on, and we continue to work with them," said Pallia.

Though the company doesn't plan to enter new sectors, it plans to enter new markets with the acquisition of HARMAN digital transformation solutions. The company completed the acquisition of the HARMAN digital transformation services in December. The acquisition led to increase in the company's headcount in the December quarter.

The employee headcount as of Dec. 31 was 241,021, up from 235,492 at the end of the September quarter. The company said that 7,500 to 8,000 freshers will be hired in FY26, against the target of 10,000. Between April and December, the company hired 5,000 freshers. In terms of upskilling, the company plans to upskill its employees in AI in-house. 

The new labour codes impacted the company's net profit just like peers. Adjusted for the impact of the new labour codes, the company's consolidated net profit was in-line with analysts' expectations at INR 33.63 billion. As the new labour codes kick in, the company is in the process of deciding on salary hikes.

On Friday, shares of the company closed 2.8% higher at INR 267.45 on the National Stock Exchanges.  End

Edited by Ashish Shirke

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