Wipro shares down almost 10% today: What's the reason?
What's the story
Wipro's shares plummeted nearly 10% to ₹243.20 each in today's trading session, following the company's disappointing Q3 results. The Bengaluru-based IT services giant reported a 7% year-on-year decline in its consolidated net profit for the third quarter of FY26. The company's net profit stood at ₹3,119 crore during this period, down from ₹3,353.8 crore in the same quarter last year.
Profit decline
Performance impacted by restructuring costs, new labor codes
The decline in Wipro's net profit was mainly due to one-time restructuring costs and the introduction of new labor codes. The company incurred a one-off impact of ₹302.8 crore on account of the implementation of these new policies. Additionally, it reported a one-off cost of ₹263 crore during the October-December quarter due to a recently concluded restructuring initiative.
Revenue growth
Operational revenue and future outlook
Despite the profit decline, Wipro's operational revenue for Q3 FY26 rose by 5.5% to ₹23,555.8 crore from ₹22,318.8 crore in the same quarter last year. On a sequential basis, Wipro's profit fell by 3.9% while its revenue grew by 3.7%. For the quarter ending March 31, 2026, Wipro expects its IT services segment revenue to be between $2,635 million and $2,688 million, indicating a sequential growth of up to 2% in constant currency terms.
Acquisition
Wipro's recent acquisition and CEO's statement
In the quarter under review, Wipro completed the acquisition of HARMAN's Digital Transformation Solutions (DTS) business for $375 million (around ₹3,270 crore). HARMAN is a Samsung subsidiary. Wipro CEO and MD Srinivas Pallia said that the company is gearing up for an "AI-focused world," as AI becomes a key agenda item for boards of directors in multinational corporations.
Dividend
Wipro announces interim dividend
Despite the disappointing Q3 results, Wipro's board has declared an interim dividend of ₹6 per share (face value of ₹2). The record date for the dividend is January 27 and it will be paid on or before February 14. This brings Wipro's total payout for the year to $1.3 billion.