Wipro Ltd. Q3 FY26 Performance Review

Executive Summary Wipro Limited reported a mixed set of financial results for the third quarter ended December 31, 2025. While the company demonstrated robust operational discipline—evidenced by a significant beat on EBIT and margin expansion—top-line revenue growth and forward-looking guidance fell short of street expectations. Consequently, while domestic shares rallied prior to the announcement, US-listed ADRs have reacted negatively, correcting over 3% in post-market trading. Detailed Analysis 1. Revenue Growth & Forward Guidance Top-line performance was modest. IT Services revenue grew 1.2% in constant currency terms, landing within Wipro's own guidance range (-0.5% to +1.5%) but trailing the consensus estimate of 1.6%. Outlook: The guidance for Q4 (Jan-Mar) is set at 0% to 2% growth in constant currency. This is a disappointment relative to analyst expectations of 1% to 3.5%, particularly as the market had factored in a boost from the Harman acquisition. 2. Operational Efficiency & Profitability The standout positive for the quarter was profitability. Wipro reported reconciled items worth ₹567.8 crore. EBIT Strength: Adjusted EBIT came in at ₹4,118 crore, significantly outperforming the CNBC-TV18 poll of ₹3,883 crore. Margin Expansion: Operating margins expanded nearly 100 basis points to 17.6%, surpassing expectations of 16.5%. This suggests strong execution on cost optimization despite the softer revenue environment. 3. Deal Wins Deal momentum appears to have slowed. The Total Contract Value (TCV) for large deals stood at $871 million. This figure is considerably lower than the ~$2 billion projection by Kotak analysts, raising concerns about near-term revenue visibility. Market Reaction BSE (India): Shares closed 2.5% higher at ₹266.8 ahead of the results, anticipating a stronger print. NYSE (US ADR): Reflecting the disappointment on guidance and deal TCV, US-listed shares slumped over 3% following the announcement.