New Labour Codes Drag Wipro’s Q3 Net Profit to ₹3,119 Crore

IT services major Wipro on Friday reported a 7% decline in consolidated net profit to ₹3,119 crore in the third quarter of FY26, weighed by a one-time provisional impact of Rs 302.8 crore due to the implementation of new Labour Codes.

The Bengaluru-headquartered company had posted a net profit (attributable to equity holders of the company ) of Rs 3,353.8 crore in the year-ago period.

Wipro's revenue from operations increased 5.5% to ₹23,555.8 crore in Q3 FY26 compared to ₹22,318.8 crore in the year-ago period.

On a quarter-on-quarter basis, Wipro’s profit fell 3.9% while revenue rose 3.7%.

"In Q3, we delivered broad-based growth in line with our expectations. As AI becomes a strategic imperative, Wipro Intelligence is emerging as a differentiator and contributed to several wins this quarter. We saw greater adoption of our AI-enabled platforms and solutions, scaled AI-led delivery through WINGS and WEGA, and expanded our innovation network across global locations," Wipro CEO and MD Srini Pallia said.

Larger rivals TCS, Infosys and HCLTech have also registered a significant impact from the implementation of new Labour Codes in their Q3 numbers. Earlier this week, TCS said the rollout of the new labour codes in Q3 FY26 resulted in a statutory impact of ₹2,128 crore, while Infosys took a hit of ₹1,289 crore during the quarter.

HCLTech also disclosed a one-time provision of $82 million (about ₹719 crore) linked to the implementation.

The Wipro scrip settled at ₹267.25 apiece on the BSE on Friday, 2.73% higher than the previous close.