Wipro has chosen not to confirm salary hikes this fiscal year, citing macroeconomic uncertainties. At the Q1 earnings meet, Chief HR Officer Saurabh Govil said the company will decide closer to the time, after assessing factors like demand, supply, and the overall market environment.
Follows TCS’s Lead
This move mirrors Tata Consultancy Services’ stance last week, which also postponed its wage revision cycle. TCS typically rolls out hikes from April, but has delayed the process due to current economic concerns.
Hiring and Attrition Trends
In Q1FY26, Wipro saw a net reduction of 114 employees. The company is reevaluating its campus and lateral hiring strategy. Attrition rose slightly to 15.1% over the last twelve months, compared to 15% in Q4FY25. The total employee count now stands at 2.33 lakh.
Q1 Performance Highlights
Wipro reported an 11% YoY increase in consolidated net profit, reaching ₹3,330 crore, surpassing expectations. Revenue was ₹22,135 crore, slightly ahead of projections. However, constant currency revenue dipped 2.3% YoY.
Muted Outlook for Q2
Despite stable earnings, Wipro remains cautious. It expects revenue to range between a decline of 1% to growth of 1% in Q2FY26. Operating margins rose 80 basis points YoY to 17.3% but declined 20 bps sequentially.
Conclusion
Wipro’s guarded approach reflects the broader caution within the IT services sector. With geopolitical tensions, US market slowdowns, and evolving client priorities, firms like Wipro and TCS are adopting a wait-and-watch stance before making compensation decisions.
