Wipro profit slips even as AI-led deals gain traction

Indian IT major Wipro Ltd on Thursday reported a 1.89% year-on-year decline in consolidated net profit for the March quarter of FY26 at ₹3,501.8 crore, even as the company continued to build strong momentum in AI-led deals and large transformation contracts amid a subdued demand environment.

Revenue from operations rose 7.6% to ₹24,236.3 crore in the quarter, according to a regulatory filing. For the full year FY26, net profit grew marginally by 0.47% to ₹13,197.4 crore, while revenue increased 3.96% to ₹92,624 crore.

“Advancements in AI are reshaping client priorities and creating new opportunities for us to partner more deeply to deliver value-driven outcomes. To strengthen our position in an AI-first world, we are pivoting to a services-as-a-software model through the AI Native Business & Platforms unit. Our strategic deal with the Olam Group further reflects the decisive investments we are making to capture opportunities at scale,” said Srini Pallia, chief executive officer and managing director.

The results reflect continued pressure on global technology spending, with enterprises prioritising cost optimisation and efficiency-led programmes over discretionary transformation projects, leading to slower deal conversions despite a healthy pipeline.

Even so, Wipro’s deal wins point to a structural pivot towards AI-led and consulting-driven engagements. The company recently signed a more than $1 billion, eight-year transformation deal with Olam Group and is acquiring its IT arm Mindsprint to deepen capabilities in AI-driven platforms. It also announced the acquisition of select customer contracts from Alpha Net Consulting for up to $70.8 million to strengthen its consulting-led application services.

Earlier deals with clients such as Etihad Airways, Saudi Electricity Company and Entrust further highlight its focus on cloud, AI and platform-led transformation, although revenue realisation from these wins remains gradual.

On the operational front, voluntary attrition declined to 13.8% in Q4 from about 15% a year earlier, reflecting a cooling labour market and tighter hiring discipline. The company has moderated fresher hiring while continuing to invest selectively in AI and data talent.

In contrast, Tata Consultancy Services reported a relatively stronger quarter, backed by robust deal wins and rising AI adoption, with a $12 billion order book and steady hiring, even as attrition inched up to around 13.7%.

Wipro’s performance underscores a broader transition in the IT services sector, where growth is increasingly being driven by AI, large deals and cost-efficiency programmes, even as near-term revenue growth remains constrained by cautious client spending.

Read more: TCS rides AI-led deal momentum, attrition risks linger