Commenting on the results, Nayak told ET Now that the 1.4% quarter-on-quarter constant currency revenue growth met estimates, especially after factoring in the impact of recent acquisitions. Margins, he noted, also appeared reasonable once the one-time impact of the new labour wage code is excluded.
“Excluding the wage code impact, both revenue growth and margins are largely in line. Overall, it is a decent set of numbers,” Nayak said.
Cautious but positive Q4 revenue outlook
Wipro has guided for IT services revenue growth of 0–2% in constant currency terms for the March quarter. While the guidance is modest, Nayak views it as an improvement from the company’s historical trend.
“Wipro has seen periods of negative growth in the past. The fact that it has now delivered positive constant currency growth and continues to guide for positive growth indicates it is getting back on the growth path,” he said.
However, Nayak cautioned that this recovery could come at a slight cost to margins in the near term, as the company prioritises revenue momentum over profitability expansion.
Deal wins and bookings remain an area to watch
On deal momentum, Wipro reported total contract value (TCV) of $3.3 billion for the quarter, down 5.7% year-on-year in constant currency terms. Nayak acknowledged that bookings could have been stronger but advised against drawing conclusions based on a single quarter.“The trailing twelve-month TCV could have been better, but this is Q3. We should wait for Q4, where there is a possibility that deal bookings improve,” he said.
Outlook
Overall, Nayak believes the results reinforce the view that Wipro is stabilising after a prolonged slowdown. While growth visibility remains limited and guidance conservative, the return to positive constant currency growth and steady margins suggest incremental improvement rather than further deterioration.
“For us, these are largely in-line numbers, with the key positive being Wipro’s gradual move back into a growth phase,” he said.