Wipro has announced that a decision regarding salary hikes will be made shortly after senior management returns from the World Economic Forum in Davos. The IT services provider last raised salaries in September 2024, making it over a year since the previous increment. CHRO Saurabh Govil confirmed the timeline during discussions following the company's third-quarter earnings announcement on January 16.

Strong Q3 Financial Performance

The company delivered robust financial results for the third quarter, with several key metrics showing improvement:

CEO Srini Pallia highlighted that the revenue growth included contributions from the HARMAN acquisition, with organic growth remaining within company guidance. CFO Aparna Iyer noted that the 17.6% margin represents one of their strongest performances, remaining stable over the last eight quarters.

Workforce Management and Hiring Plans

Wipro demonstrated positive trends in workforce stability and expansion during the quarter:

Attrition and Retention

• Employee attrition declined by more than 2% in the October-December quarter
• Similar attrition levels expected to continue in the fourth quarter
• Improved employee retention contributing to operational stability

Fresher Recruitment Strategy

The company's hiring strategy reflects confidence in demand recovery and business growth prospects for the coming quarters.

Operational Improvements and Cost Management

CFO Aparna Iyer attributed the margin improvement to several operational factors:

• Cost Control Measures: Optimized selling, general, and administrative expenses
• Higher Utilization Rates: Improved employee productivity and project allocation
• Fixed-Price Project Performance: Better profitability in fixed-price engagements
• HARMAN Integration: Successfully absorbed one month impact of HARMAN DTS acquisition

The company plans to factor in two additional months of the HARMAN acquisition impact in the next quarter while continuing investments in client relationships and large deal pipeline opportunities.

Market Challenges and Strategic Response

Wipro's leadership acknowledged specific sector challenges while maintaining optimism about pipeline strength:

Sector-Specific Impacts

• Manufacturing and Retail: Reduced discretionary spending due to tariff uncertainty
• Cost Optimization Focus: Clients seeking vendor consolidation and operational efficiency
• Geopolitical Factors: Global trade tensions affecting client decision-making

Pipeline and Deal Activity

Despite Q3 large deal wins being lower than recent quarterly averages, management emphasized the binary nature of large deals and highlighted strong year-to-date performance with over 70% growth.

Future Outlook and Investment Strategy

Wipro maintains its focus on growth investments while managing operational efficiency. The company operates within its aspirational margin band of 17-17.5% and continues investing in client relationships and large deal conversions. With current market capitalization at ₹2,80,262.09 crore, the company aims to balance growth investments with margin sustainability in a competitive landscape.

Wipro management has struck a measured yet confident tone while outlining its near-term outlook, highlighting steady demand momentum, an AI-first execution strategy, and sustained focus on margins despite cautious client spending on discretionary projects.

Revenue Guidance and Market Outlook

The company provided Q4 revenue guidance reflecting the current market environment:

CEO Srini Pallia explained that the broader demand environment continues to be shaped by vendor consolidation and increasing adoption of AI-led programmes. "So, if you look at demand from year 2025 to 2026, the theme of vendor consolidation clearly continues, and that is something that we will stay focused on," Pallia said.

AI-First Strategy and Pipeline Transformation

Wipro has embedded AI across its entire pipeline following the launch of Wipro Intelligence, which includes delivery platforms WINGS and WEGA. Pallia emphasized the comprehensive nature of this transformation: "The way we look at the pipeline today is that every opportunity in our pipeline will be AI-first and AI-led."

The AI integration covers multiple service areas:

• Run and Operate: WINGS platform for application support, infrastructure support, and business processes
• Software Development: WEGA tool for build and transform projects
• Advisory Services: Data, security, and change management solutions
• AI Rewrites: Helping clients reimagine processes leveraging AI

Strong Margin Performance

CFO Aparna Iyer highlighted the company's robust profitability metrics:

"We have been consistently improving our operating margins over the last eight quarters or so, and full credit goes to the entire team for the execution rigour all around," Iyer said. The improvement came through multiple levers including enhanced profitability in fixed-price programmes, improved utilization, and optimized SG&A expenses.

Workforce and Operational Updates

Chief Human Resources Officer Saurabh Govil provided updates on hiring and regulatory provisions:

The labour code provision relates primarily to gratuity calculations following recent regulatory clarifications. Govil noted that lateral hiring will continue based on skill and project demand, particularly in data, SAP, and engineering areas.

Sector-Specific Challenges and Opportunities

Regarding business conditions in BFSI and North America, Pallia acknowledged ongoing uncertainty but identified positive underlying trends. He noted that cost optimization and vendor consolidation efforts are creating room for future discretionary spending: "The main reason clients are doing this is to improve their cost structures so that they can position themselves for more discretionary spend, which then translates into more AI projects."

Overall, Wipro's leadership believes the pipeline remains structurally strong, anchored by AI-led transformation, even as near-term revenue growth remains cautious and execution-focused.