Wipro's signings hit a two-year low, with two deals it calls confirmed still unsigned

Two deals missed the quarter's close

Wipro signed $2.6 billion of contracts in the three months to September, counting new work, renewals and extensions of existing deals. That was 22.9% less than in June in constant currency, which strips out exchange-rate moves, and the smallest quarterly total in at least two years. Large deals, those worth $30 million or more, fell harder, by 58.6% to $674 million.

Chief executive Srini Pallia said two contracts had missed the quarter's close. Wipro had confirmed orders, he said, but "Unfortunately, some paperwork did not get signed." The deals, he added, were "not going anywhere" and would be signed this quarter, and finance chief Aparna Iyer said both were in the process of being signed. Timing came up in July too, when Pallia said decisions on some deals had slipped into the quarter just reported.

The year-earlier total of $4.7 billion is a high bar: it included two very large deals, a significant part of them renewals, Pallia said at the time. In the three quarters before this one, signings ran between $3.3 billion and $3.5 billion.

Revenue stood still, with two acquisitions inside the number

Signings matter because revenue follows them slowly: a contract's whole value is booked when it is signed, while the revenue arrives over its life. IT services, almost all of Wipro's revenue, brought in $2.61 billion last quarter, flat on June and 0.6% more than a year earlier in constant currency. That was above the middle of the -1.5% to +0.5% range Wipro gave in July.

The 0.6% includes two businesses Wipro did not own a year ago. Harman DTS joined in the December 2025 quarter and supplied 0.8 point of that quarter's 1.4% sequential growth. Mindsprint, bought as part of a large deal with the Olam group, joined in the June quarter, and the July range counted it for the whole September quarter. Iyer said in July that Wipro discloses an acquisition's contribution only in its first quarter, and when an analyst asked on this call for growth excluding acquisitions, she gave no figure. Without the two purchases, growth on a year earlier would have been below 0.6%, by an amount the company does not give.

The IT services margin rose to 16.5% from 16.0%, which Iyer put down to operational improvements and a weaker rupee, partly offset by continued investment. That is still short of the 17% to 17.5% band Wipro wants to return to; Iyer said it would like to get back "as quickly as possible" but would not set a date.

December is a furlough quarter, and the range reflects it

For the quarter to December, Wipro expects IT services revenue of $2,571 million to $2,625 million, between 1.5% lower and 0.5% higher than last quarter in constant currency. Iyer said the range is driven largely by furloughs, the holiday shutdowns clients take every December quarter, and by fewer working days. She expects the furloughs to be broadly in line with last year's.

A year ago Wipro guided to -0.5% to +1.5% for the same quarter, a point higher at each end, and that range excluded any revenue from Harman DTS, then recently announced.

Management says the delayed deals will help March

Beyond the two delayed deals, Pallia said the pipeline for the December quarter was very strong, and that a very large financial-services contract whose ramp-up had been delayed is now starting to ramp up. Revenue from financial-services clients grew 1.0% on the quarter.

Asked whether bunching signings into this quarter would help the next, Iyer said it would have a positive impact on the revenue outlook for the March quarter. Wipro guides only one quarter ahead, and she said it would update investors on both deals in January.