IT services major Wipro on Friday reported a 7 per cent decline in consolidated net profit to Rs 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 Nascent Information Technology Employees Senate (NITES) has written to the labour and employment ministry accusing global Information Technology (IT) firm Wipro of delaying onboarding of about 250 engineering graduates even though commitments were made by the company through offer letters and formal communication.
Concerns have emerged about the impact of AI adoption on young workers, particularly those seeking their first job in high-skilled occupations.
IT services firm Wipro on Thursday reported a marginal increase in consolidated net profit to Rs 3,246.2 crore in the July-September quarter, even as company CEO and MD Srini Pallia asserted that the demand environment remains robust with discretionary spends shifting towards AI-related projects.
The Nifty IT index hit a more than nine-month low, trading at its weakest level since April 17, 2025.
The selloff in domestic information technology stocks intensified on Friday, with the Nifty IT index sliding as much as 5.2 per cent during the session before paring losses to close 1.44 per cent lower.
While Infosys never had a presence, Wipro's Venezuelan unit was liquidated many years ago.
The India-US trade deal has offered a much-needed breather for the Indian information technology (IT) industry, which has been grappling with global macroeconomic uncertainty and subdued client spending over the past few years.
Texas Governor Greg Abbott has directed state agencies and public universities to suspend new H-1B visa petitions through May 2027, a move likely to affect Indian professionals. The order comes amid ongoing debate over skilled immigration and potential impacts on academic research and innovation.
Shares of information technology (IT) companies were in demand on Friday, with the National Stock Exchange's (NSE's) Nifty IT index rallying 3.3 per cent on . This came after Infosys reported steady sequential growth, driven by health care boost and large deal rampup in a seasonally weak quarter (Q3FY26).
With discretionary spending still under pressure, the information technology (IT) services industry continued to face an uncertain demand environment in the third quarter of 2025-26 (Q3FY26).
'We remain cautious in this environment, and the uncertainty continues.'
The 2025 contraction marks the steepest decline in both the number of billionaire promoters and their aggregate wealth since 2012.
The Telangana government plans to name a road after Ratan Tata. Other roads may be named after Google, Microsoft and Wipro.
India's $280-billion IT industry heads into 2026, balancing visa-related headwinds and global trade uncertainty against its biggest-ever push into artificial intelligence and the rapid expansion of global capability centres (GCCs). Heightened scrutiny of the US H-1B visa programme - including a proposed $100,000 fee for new visas and concerns over a potential 25 per cent outsourcing tax - has complicated cross-border delivery for Indian firms, even as companies accelerate efforts to reduce reliance on onsite staffing.
'Perhaps unlike any previous era of software, this one requires a rethink in even the lifecycle of how we build.'
'Companies will need to revisit compensation structures, contracts, staffing models, and human resources system.'
Infosys, HCL, Wipro ramp up fresher intake as AI reshapes skills demand and hiring shifts from 'hire to train' to 'train to hire'.
'The impact will be minimal and it will only increase compliance cost on consent, data flows, localisation timelines, internal audits, data mapping, and new tooling.'
The buyback comes at a time when Infosys shares have declined 19 per cent so far this year.
'We do not want a situation where we onboard people and have challenges of deployment.'
India's top information- technology (IT) services companies, all cash-rich, have been tightfisted about ploughing back their earnings in new projects or acquisitions and the bulk of the profits have been distributed to shareholders through dividend and share buybacks. In the past 10 years (that is, excluding the current one), the firms have reinvested in growth and expansion only around 13.5 per cent of the cash flow generated from their operations.
Companies such as TCS, Infosys, Wipro and HCLTech usually have big centres in cities to be in proximity with their clients.
Stock market investors this week would track the renewed tariff tensions between the US and China, domestic inflation data, besides, quarterly earnings from blue-chips HCL Tech, Infosys and Reliance Industries would also drive the momentum in equities, analysts said.
IT services firm Wipro's revenue is likely to increase by about 4.5 per cent in FY26, mainly driven by favourable sectoral trends and recovery in discretionary customer spending, according to global rating agency Fitch.
The 15-year agreement will see Infosys develop a next-generation, data-driven workforce management platform to replace the existing electronic staff record (ESR) system, which annually manages a 55 billion payroll for 1.9 million NHS employees.
The US remains the largest market for IT outsourcing, and for Indian giants TCS, Infosys and Wipro, it contributes around 40 per cent of their top line.
Colliers reports that GCC leasing has jumped from 4.6 million square feet in 2021 and is expected to hit 10.6 million square feet by 2025 -- a clear sign that multinationals see Bengaluru as a long-term base.
IT stocks dropped in morning trade on Monday, with Tech Mahindra tumbling over 6 per cent, amid concerns over the steep hike in US H-1B visa fees. Shares of Tech Mahindra tumbled 6.45 per cent, LTI Mindtree slumped 5.61 per cent, Persistent Systems dropped 5.51 per cent, Hexaware Technologies tanked 5.14 per cent and HCL Tech fell by 4.24 per cent on the BSE.
Wipro on Wednesday reported a 25.9 per cent year-on-year rise in consolidated net profit for the March quarter to Rs 3,569.6 crore, but warned of a weak quarter ahead with up to 3.5 per cent expected drop in IT services revenue for Q1FY26, amid global uncertainties. CEO and Managing Director Srini Pallia said clients remain cautious in the face of macroeconomic uncertainty.
While FY25 attrition rates remained below pre-Covid levels, most companies experienced a 1 to 3 percentage point increase compared to FY24.
The decision to hike US H-1B visa application fee to $100,000, trade talks and the GST rate cut will be the key drivers for stock market movement this week, analysts said.
'It is good to have the H1-B visa option but if tomorrow things happen to change, it is not the end of the world situation.'
'New announcements are made every day which brings tremendous amount of instability and uncertainty.' 'Relying on America has become a big problem.'
'What we need to watch is how Saudi Arabia's financial assistance will be used by Pakistan. If the funds go to build their military hardware and operations, it should worry us.'
According to the US Citizenship and Immigration Services (USCIS), Amazon had 10,044 workers using H-1B visas as of June, 2025. Coming in at the second spot was TCS with 5,505 H-1B visas approved.
India's top IT services firms delivered single-digit revenue growth in April-June, capping off a mixed, somewhat-sobering quarter as macroeconomic instability and geopolitical tensions weighed on global tech demand and delayed client decisionmaking. Management commentary painted a mixed picture, caution prevailed, yet industry CEOs also emphasised cost optimisation, vendor consolidation, and opportunities in AI makeovers.
More than 7,700 senior professionals with over 15 years of experience have exited India's IT services firms -- TCS, Infosys, Wipro, HCLTech, Tech Mahindra, Cognizant, and LTIMindtree -- over the past 12 months.
'You are a guest in the US. It's not your home, you're a guest. If they don't feel comfortable, you have to step out.'
IT services company Wipro on Friday reported a 24.4 per cent year-on-year rise in its consolidated net profit for the just-ended December quarter at about Rs 3,354 crore. The Bengaluru-based tech major saw its revenue from operations inch up by 0.5 per cent to about Rs 22,319 crore.
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