Wipro’s share price tanked on Thursday after the country’s fourth-largest IT firm posted weak results for the second quarter.

What Happened: Wipro announced a consolidated net profit of ₹2,667.3 crore for the quarter ended September 30, a slight increase of 0.70% from a profit of ₹2,649.10 crore last year.

The consolidated revenue from operations for the quarter was ₹22,515.90 crore, down from ₹22,539.70 crore in the previous year.

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However, the company’s second-quarter profit and revenue missed street estimates of around ₹2,800 crore and ₹22,810 crore, respectively. The results came in at the lower end of Wipro’s own guidance.

Closer Breakdown: In the IT services segment, revenue was reported at $2,713.3 million (₹22,500 crore), which marked a 2.3% sequential decrease, and the adjusted constant currency IT services revenue dropped by 2% quarter on quarter. The IT services segment EBIT for the quarter was ₹3,610 crore, reflecting a 6% increase from a year ago.

The IT products segment’s revenue for the quarter was ₹14,700 crore, but it reported an overall loss of ₹47 crore.

Wipro CEO and managing director Thierry Delaporte said that despite the challenging macro environment, the company continues to perform well in the market. He highlighted that they ended the second quarter with 22 accounts exceeding $100 million (₹832 crore), double that of the previous fiscal year.

Management Commentary: Delaporte emphasised the company’s investments in technology infrastructure, streamlining operations and reskilling employees to prepare for an AI-driven future.

Wipro expects revenue from its IT services business segment to be in the range of $2,617 million to $2,672 million, translating to a sequential guidance of -3.5% to -1.5% in constant currency terms.

The company also reported that voluntary attrition has moderated quarter on quarter, reaching a nine-quarter low of 13.4% in the second quarter.

Price Action: Wipro’s share price tumbled 3.02% to ₹395.15 at the start of trade on Thursday, sinking to its lowest since July.

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