Winning Bizness Desk
Mumbai.Infosys posted a consolidated net profit of 7,364 crore rupees for the July-September quarter, marking a 13.2 percent increase from 6,506 crore rupees in the same period last year. Revenue grew 8.6 percent to 44,490 crore rupees from 40,986 crore rupees. Wipro reported a consolidated net profit of 3,246 crore rupees, up 1.2 percent from 3,209 crore rupees last year, while revenue increased 2 percent to 22,697 crore rupees. Both companies highlighted steady growth despite global IT sector challenges.
Key deals and total contract value insights
Infosys signed deals worth 3.1 billion dollars in total contract value (TCV) during the quarter, slightly lower than the previous quarter’s 3.8 billion dollars. Notably, 67 percent of these were net new deals. CEO Salil Parekh emphasized the focus on artificial intelligence and client priorities as driving these deals, which are expected to strengthen future growth. Wipro did not disclose TCV figures but reported growth in consulting and technology services across its 65-country presence.
Guidance and margin expectations for fiscal year
Infosys raised revenue guidance for FY26, now expecting 2-3 percent growth in constant currency, up from 1-3 percent earlier. Operating margin guidance remained at 20-22 percent. Wipro maintained a stable outlook for its IT services segment, although it noted margin pressures due to rising costs and attrition. Both companies are cautious but optimistic about steady growth in the coming quarters.
Attrition and workforce updates
Infosys’ last-twelve-month voluntary attrition in IT services stood at 14.3 percent, slightly down from 14.4 percent last quarter but higher than 12.9 percent last year. Employee count rose to 3,31,991 from 3,23,788, reflecting significant hiring growth. Wipro’s attrition increased from 14.5 to 14.9 percent, adding around 2,000 employees compared to last year. High attrition remains a challenge for both firms, requiring effective workforce management strategies.
Dividends, buybacks, and stock performance
Infosys declared an interim dividend of 23 rupees per share for Q2, with a record date of October 27 and payout on November 7. The company’s capital policy includes an 18,000 crore rupee share buyback. Its stock closed slightly down by 0.24 percent at 1,470 rupees. Wipro’s stock rose 1.39 percent to 253 rupees but has declined about 15 percent this year, reflecting broader market volatility and investor sentiment.
Sector outlook and long-term potential
Both companies’ results suggest that the Indian IT sector is experiencing moderate but stable growth. The focus on AI, cloud, and client priorities is expected to support long-term expansion. However, managing attrition and maintaining margins remain key challenges. With continued investment in digital services and strategic hiring, Infosys and Wipro are positioning themselves for sustainable growth while navigating sector pressures.
Company background highlights
Infosys was founded in 1981 by Narayana Murthy and six partners in Bangalore, starting with just 250 dollars. The company now has over 3 lakh employees worldwide, offering consulting, software development, cloud, and AI services. Wipro, a leading technology services and consulting company, was founded in 1966 by Azim Premji. It operates in 65 countries and has diversified from vegetable oil production to IT solutions and consulting services.
Key takeaways in a nutshell:
1. Infosys Q2 profit grew 13.2 percent to 7,364 crore rupees.
2. Wipro Q2 profit rose 1.2 percent to 3,246 crore rupees.
3. Infosys signed $3.1 billion in total new deals this quarter.
4. Attrition remains a challenge for both Infosys (14.3%) and Wipro (14.9%).
5. Infosys declared 23 rupees per share interim dividend; Wipro stock up 1.39%.
6. Revenue guidance stable: Infosys 2-3% growth, Wipro maintaining moderate outlook.
7. Sector outlook steady with AI, cloud, and client focus driving long-term potential.
