LTIM

Adds reporters' bylines

By Sai Ishwarbharath B and Haripriya Suresh

BENGALURU, Aug 8 (Reuters) - Indian outsourcing giant Tata Consultancy Services' TCS.NS decision to cut over 12,000 jobs signals the start of a broader AI-fueled trend that could end up eliminating around half a million jobs over the next two to three years from the $283 billion sector, experts said.

While TCS pegged the move to shed 2% of its workforce to skill mismatches rather than AI-related productivity gains, experts viewed the largest-ever layoffs by India's top private employer as the beginning of things to come in the labour-intensive sector. Roughly 12,200 TCS middle and senior management jobs will be lost.

The industry, which has played a crucial role in creating a middle class in India, is increasingly seeing AI being used for everything from basic coding to manual testing and customer support.

The sector employed 5.67 million people as of March 2025 and accounted for over 7% of India's GDP. It has a huge multiplier effect due to the direct and indirect jobs it creates and the cars-to-homes consumption it drives in the world's fifth-largest economy.

It has historically absorbed a majority of India's engineers but that will change as rising AI use ekes out more efficiencies and demands newer skills that many current employees lack, according to half a dozen industry veterans, analysts, and staffing firms.

"We are in the midst of a massive transition that will transform white-collar work as we know it," said Silicon Valley-based Constellation Research founder and chairman Ray Wang, echoing other experts who warned that more layoffs are likely on the cards.

The most vulnerable employees include pure people managers with minimal tech knowledge, those in charge of testing or identifying bugs and ensuring user-friendliness before delivering software to clients, and infrastructure management staff who provide basic tech support and ensure networks and servers are working well, experts said.

"About 400,000 to 500,000 professionals are at risk of being laid off over the next two to three years as their skills don't match client demands," tech market intelligence firm UnearthInsight's founder Gaurav Vasu said, adding that about 70% of those layoffs would impact workers with 4-12 years' experience.

"This (fear stemming from TCS layoffs) may hurt consumer demand for tourism, luxury shopping and even delay long-term investments such as real estate," Vasu said.

TCS and its peers Infosys INFY.NS, HCLTech HCLT.NS, Tech Mahindra TEML.NS, Wipro WIPR.NS, LTIMindtree LTIM.NS, and Cognizant CTSH.O collectively employ over 430,000 workers with 13 to 25 years of experience, according to staffing firm Xpheno.

"At the moment, they may appear like the big fat middle layer," Xpheno's co-founder Kamal Karanth said. None of the IT firms responded to Reuters queries seeking comment.

"With cost optimization being the key driver for new deal wins, clients are asking for productivity benefits - a trend which is also growing due to the rise in AI adoption. This requires IT firms to do more work with the same number of employees or the same work with fewer employees," Jefferies analyst Akshat Agarwal said in a research note.

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TCS, which had more than 613,000 workers before the layoffs, said in its late July announcement it was gearing up to be "future-ready" by investing in new technologies, entering new markets, deploying AI at scale for its clients and itself, and realigning its workforce model. It did not answer Reuters queries on how many layoffs were tied to AI adoption and why it could not redeploy the affected employees.

"This is very devastating news," said a 45-year-old, Kolkata-based TCS employee affected by the latest layoffs. "It is very difficult for people my age to get new jobs."

Some others who are still at TCS fretted over its mediocre performance bonuses for senior employees in recent quarters, a new "bench policy" that limits the time somebody could be without a project regardless of personal circumstances or past performance, on-boarding delays, and the emotional turmoil caused by the layoffs.

"All these developments have tanked the morale of mid-career folks like me," a Pune-based TCS employee said.

The Indian outsourcing sector has been a key employment engine since the 1990s, offering upward mobility to millions of engineers. But revenue growth has weakened recently as its clients, stung by inflation and U.S. tariff uncertainty, defer discretionary spending and demand better cost management.

"The tech industry is at an inflection point, as AI and automation move to the very core of how businesses operate," industry body Nasscom said.

During past tech revolutions, disruption was felt at the organisational level.

"With AI, for the first time, the onus is on the individual to reinvent or re-skill themselves," former Tech Mahindra CEO CP Gurnani said.

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Dhanya Skariachan and Kim Coghill)

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NEW DELHI, Aug 4 (Reuters) - The Indian government's tax card upgrade project, known as PAN 2.0, has been awarded to LTIMindtree LTIM.NS, a government source aware of the matter said on Monday.

The project, approved by Prime Minister Narendra Modi's administration in November 2024, is expected to go live in 18 months, the source, who did not want to be named as the information is not yet public, said.

LTIMindtree and the income tax department did not immediately respond to Reuters' requests for comment.

(Reporting by Nikunj Ohri; Editing by Mrigank Dhaniwala)

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By Haripriya Suresh

BENGALURU, July 18 (Reuters) - Indian IT services firm LTIMindtree LTIM.NS is targeting near double-digit revenue growth by the end of fiscal 2026, its CEO said on Friday, a day after the company posted a narrow miss on first-quarter revenue.

"If we can hit a run rate which brings us nearer to the double digit of year-on-year growth ... (FY26) will definitely end up becoming better than FY25," CEO Venugopal Lambu told Reuters.

Nachiket Deshpande, President of LTIMindtree, told analysts on Friday that after the formation of a global large deal team, the company is winning more deals and adding to the pipeline. "We're seeing the (deal) momentum continue at least in the next few quarters," Deshpande said.

On Thursday, the firm reported first quarter consolidated revenue of 98.41 billion rupees ($1.14 billion), missing estimates marginally as cautious spending by clients slowed growth in its key North America market to the lowest in over a year.

Stubborn inflation, subdued demand, and uncertainty around U.S. trade policies are prompting clients to delay discretionary tech spending, clouding prospects of a recovery in India's $283 billion IT sector.

The company's operating margin in the first quarter contracted by 70 basis points on-year, but expanded 50 basis points sequentially.

Lambu on Friday said the company was also aiming to expand its operating margins by 100 basis points by the end of fiscal 2026.

LTIMindtree's shares fell as much as 2.4% on Friday before closing 1.36% lower.

($1 = 86.0770 Indian rupees)

(Reporting by Haripriya Suresh in Bengaluru; Editing by Chandini Monnappa and Sahal Muhammed)

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July 17 (Reuters) - Indian IT services exporter LTIMindtree LTIM.NS reported on Thursday lower-than-expected revenue for the first quarter, as global clients cut back on discretionary technology projects amid persistent economic uncertainty and geopolitical tensions.

Consolidated revenue for the first quarter rose 7.6% year-on-year to 98.41 billion rupees ($1.14 billion), missing analysts' average estimate of 98.51 billion rupees, according to LSEG data.

($1 = 86.0650 Indian rupees)

(Reporting by Haripriya Suresh; Editing by Chandini Monnappa)

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BENGALURU, July 10 (Reuters) - India's Tata Consultancy Services TCS.NS reported lower-than-expected first-quarter revenue on Thursday as clients remained cautious about discretionary spending amid tariff-related uncertainty.

Consolidated sales at India's largest IT services firm by revenue rose 1.3% year-on-year to 634.37 billion rupees ($7.40 billion) in the June quarter.

Analysts, on average, expected 646.66 billion rupees, as per data compiled by LSEG.

($1 = 85.6690 Indian rupees)

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Janane Venkatraman)

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June 19 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LAUNCHES BLUEVERSE AI ECOSYSTEM

Source text: ID:nBSE7NL0cX

Further company coverage: LTIM.NS

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May 12 (Reuters) - Indian software services exporter LTIMindtree LTIM.NS bagged a $450 million multi-year deal, its largest-ever, the company said on Monday.

(Reporting by Nandan Mandayam in Bengaluru; Editing by Mrigank Dhaniwala)

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April 23 (Reuters) - LTIMindtree Ltd LTIM.NS:

• Q4 CONSOL NET PROFIT 11.29 BILLION RUPEES; IBES PROFIT EST. 11.58 BILLION RUPEES

• Q4 CONSOL REV FROM OPS 97.72 BLN RUPEES; IBES EST. 98.57 BLN RUPEES

• BOARD RECOMMENDS FINAL DIVIDEND OF 45 RUPEES PER SHARE

Source text: [ID:]

Further company coverage: LTIM.NS

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Corrects syntax in paragraph 1

By Haripriya Suresh

BENGALURU, April 4 (Reuters) - India's $283-billion IT sector should brace for a rough year ahead as tariffs are likely to stoke inflation in its key U.S. market and force clients to cut spending, analysts said.

Although President Donald Trump did not impose direct tariffs on IT services, Indian firms are expected to feel the heat as clients, especially in manufacturing, logistics and retail sectors, adjust to the new levies.

That could slow deal cycles, delay existing projects and hurt revenue growth, analysts said. Bernstein and ICICI Securities rushed to cut their ratings on the Indian IT sector soon after the tariff announcement.

The tariffs come at a time the sector was counting on Trump to revive client confidence and discretionary spending after years of weak revenue growth.

The U.S. accounts for more than half of India's $190 billion software exports, making the sector sensitive to shifts in spending confidence among businesses in the world's largest economy. J.P.Morgan on Friday lifted global and U.S. recession odds to 60% after Trump's tariff announcement.

"With a rising risk of U.S. recession and uncertain decision-making, we think chances of fiscal 2026 being a complete washout are rising," J.P. Morgan said in a note on Friday, without giving specific numbers.

At least six analysts expect Indian IT firms to issue a "conservative" annual revenue growth forecast when quarterly results start next week.

Companies with a greater exposure to discretionary spending are expected to bear the brunt of any tariff-fueled slowdown.

"Discretionary IT spend will likely see an impact across the industry verticals. Companies to get impacted will typically be the high-growth companies in the large caps and some of the mid-caps where the exposure usually is much higher on the discretionary side," BNP Paribas analyst Kumar Rakesh said.

He added the impact of a potential slowdown could be apparent by the September quarter.

India's Nifty IT index .NIFTYIT fell 3.6% on Friday to take its losses for the week to 9.15%, the steepest weekly fall for the index in more than five years.

(Reporting by Haripriya Suresh; Editing by Dhanya Skariachan, Sonia Cheema and Saumyadeb Chakrabarty)

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April 2 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE - PHINIA PARTNERS WITH CO

Source text: [ID:]

Further company coverage: LTIM.NS

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March 31 (Reuters) - LTIMindtree Ltd LTIM.NS:

• ANNOUNCES STRATEGIC PARTNERSHIP WITH GOOGLE CLOUD

• PARTNERSHIP WITH GOOGLE CLOUD TO DRIVE BUSINESS TRANSFORMATION WITH AGENTIC AI

Source text: ID:nBSE4SKcvc

Further company coverage: LTIM.NS

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March 26 (Reuters) - Intellect Design Arena Ltd INEE.NS:

• INTELLECT DESIGN ARENA LTD - ANNOUNCES STRATEGIC PARTNERSHIP WITH LTIMINDTREE

• INTELLECT DESIGN ARENA - PARTNERSHIP TO TRANSFORM FINANCIAL SERVICES IN MEA AND APAC

Source text: ID:nBSE10Yc2S

Further company coverage: INEE.NS

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Feb 20 (Reuters) - Thomas Cook (India) Ltd THOM.NS:

• THOMAS COOK (INDIA) - CO, SOTC, FAIRFAX, LTIMINDTREE, VOICING.AI COLLABORATE ON GENAI ADVISOR

Source text: ID:nBSE3X8nLz

Further company coverage: THOM.NS

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** Indian IT index .NIFTYIT the only one among 13 major sectors trading higher, bucking broader market weakness .BO

** IT stocks up 0.24% vs a 0.5% drop in benchmark Nifty 50 .NSEI

** LTIMindtree LTIM.NS top gainer, up 2.83% after signing a multi-year contract

** Persistent Systems PERS.NS follows, with a 2.71% increase

** JP Morgan expects PERS to be the fastest growing in its coverage over FY25-27, saying it navigates tough macro environment well

** Heavyweights Infosys INFY.NS flat, while TCS TCS.NS down 0.6%

** IT index has lost 4.9% YTD, more than Nifty 50's ~3% drop

(Reporting by Ananta Agarwal in Bengaluru)

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Jan 30 (Reuters) - LTIMindtree Ltd LTIM.NS:

• PARTNERS WITH FLS FOR APPLICATION SERVICES TRANSFORMATION

Source text: ID:nBSE6sDsk7

Further company coverage: LTIM.NS

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Jan 24 (Reuters) - LTIMindtree LTIM.NS, India's sixth-largest IT firm, said on Friday that former president Venugopal Lambu would return as CEO after a two-year stint at Randstad Digital.

(Reporting by Sai Ishwarbharath B; Editing by Savio D'Souza)

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Jan 23 (Reuters) - LTIMindtree Ltd LTIM.NS:

• UNIT LTIMINDTREE LLC DISSOLVED

Source text: ID:nBSE9y5mf2

Further company coverage: LTIM.NS

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Jan 20 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE - SUDHIR CHATURVEDI, WHOLE-TIME DIRECTOR, PRESIDENT – MARKETS RESIGNS

Source text: [ID:]

Further company coverage: LTIM.NS

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Adds details on forecast, analyst comment, background on peers

By Indranil Sarkar and Manvi Pant

Jan 17 (Reuters) - Shares of India's No. 2 software services exporter Infosys INFY.NS fell nearly 6% on Friday and were set for their biggest one-day decline since July 2023, as analysts raised concerns about the quality of earnings following its third-quarter report.

The stock was down 5.7% as of 11:49 a.m. IST, and was the top drag on the IT index .NIFTYIT and the benchmark Nifty 50 .NSEI, which declined 2.5% and 0.7% respectively.

Its U.S.-listed shares INFY.N fell about 6% overnight.

Infosys on Thursday raised its annual revenue forecast for the third time this financial year as its U.S. banking and retail clients warmed up to spending more on discretionary projects, echoing Tata Consultancy Services TCS.NS and HCLTech HCLT.NS.

However, analysts were concerned about the "quality" of the earnings report, which overshadowed the outlook.

The revenue growth was driven by a higher component of "third-party items" in Infosys' deal pipeline, "which drove concerns around the quality of the beat and raise", Morgan Stanley analysts said in a note.

"Given that the commentary on small deals pipeline is not showing any meaningful signs of inflection, we now assume the (industry-wide) recovery to be more gradual than before," they said.

Small deals comprise more than two-thirds of the company's total deal intake, according to BofA Global Research.

Markets are awaiting further evidence of uptick in discretionary spending, not just commentary from IT companies, said Saurabh Jain, assistant vice president of retail equities research at SMC Global Securities.

Infosys shares gained 22.5% in 2024, outperforming TCS and LTIMindtree LTIM.NS, but trailed behind HCLTech, which rose 31%.

(Reporting by Indranil Sarkar and Manvi Pant in Bengaluru, additional reporting by Anuran Sadhu; Editing by Mrigank Dhaniwala and Varun H K)

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Updates with commentary from CEO in paragraphs 5, 6 and 9

Jan 16 (Reuters) - India's LTIMindtree LTIM.NS on Thursday reported third-quarter revenue above estimates, helped by the execution of large deals won in previous quarters, although its profit fell on account of an uptick in expenses.

The country's sixth-largest IT firm reported a 7.1% on-year rise in consolidated revenue at 96.61 billion rupees ($1.12 billion) in the three months ended Dec. 31. Analysts, on average, expected 96.25 billion rupees revenue, per data compiled by LSEG.

The company's banking and financial services segment grew 7.5% on-year, on the back of the execution of deals from clients such as Nexi Group and South Africa-based Absa Bank over the last few months.

Going ahead, the IT sector could benefit from Donald Trump's presidency in the United States due to his pro-business policies, top industry executives said in recent weeks.

Meanwhile, LTIMindtree CEO Debashis Chatterjee told analysts on a call that political and economic uncertainties persist, and "predicting spends trending with certainty is challenging" with a new US government and potential policy changes.

While peers such as Tata Consultancy Services TCS.NS and Infosys INFY.NS signalled early signs of a pickup in discretionary spending, LTIMindtree flagged limited momentum.

LTIMindtree earns nearly 75% of its revenue from the North America market.

The company reported a 7.1% decline in profit to 10.85 billion rupees. That missed analysts' estimate of 11.39 billion rupees, as employee-related expenses rose 11%.

LTIMindtree rolled out wage hikes from Oct. 1, which also impacted its operating margin, Chatterjee said.

Its deal wins rose to $1.68 billion from $1.3 billion in the previous quarter and $1.5 billion in the year-ago period, and largely comprised of cost takeout and vendor consolidation deals.

The company's shares closed 2.4% higher ahead of the results.

($1 = 86.5740 Indian rupees)

(Reporting by Haripriya Suresh and Sai Ishwarbharath B; Editing by Varun H K and Eileen Soreng)

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** Shares of IT services firm LTIMindtree LTIM.NS rise 2.7% to 5,886 rupees

** Jefferies upgrades LTIM to 'buy' from 'underperform', raises TP to 6,650 rupees from 5,450

** Attributes upgrade to the recent correction in stock price factoring in near-term earnings risks

** Prefers stocks with higher exposure to North America/BFSI (Coforge COFO.NS, Infosys INFY.NS, TCS TCS.NS, and LTIM) for stronger growth, double-digit EPS visibility over FY25-27

** Sees shift toward modernizing tech stacks in FY26, driving 7% Y/Y growth in revenue

** Analysts' avg rating on stock is "hold", same as that on peers Tech Mahindra TEML.NS, Wipro WIPR.NS, HCL Technologies HCLT.NS - data compiled by LSEG

** Median PT on LTIM is 6,540 rupees - LSEG data

** Stock fell ~11% in 2024, vs a ~22% gain in the Nifty IT index .NIFTYIT

(Reporting by Yagnoseni Das in Bengaluru)

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Dec 16 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE - LAUNCHES AI-DRIVEN CYBER DEFENSE RESILIENCY CENTER

Source text: [ID:]

Further company coverage: LTIM.NS

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Dec 10 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE LTD - ANNOUNCES STRATEGIC PARTNERSHIP WITH GITHUB

Source text: ID:nBSEH10KQ

Further company coverage: LTIM.NS

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Dec 6 (Reuters) - LTIMindtree Ltd LTIM.NS:

• SUBSIDIARY SYNCORDIS SARL IN FRANCE HAS BEEN DISSOLVED

Source text: ID:nBSEbxJLtB

Further company coverage: LTIM.NS

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Dec 4 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE - SIGNING OF DEFINITIVE AGREEMENT BY LTIMINDTREE USA FOR INVESTMENT IN VOICING.AI

• LTIMINDTREE LTD - TO INVEST UP TO $6 MILLION IN VOICING.AI

Source text: ID:nBSE50BScR

Further company coverage: LTIM.NS

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Nov 25 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE AND MICROSOFT JOIN FORCES TO SUPERCHARGE AI INNOVATION AND DIGITAL TRANSFORMATION FOR GLOBAL ENTERPRISES

Source text: ID:nBw2TZwQCa

Further company coverage: LTIM.NS

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** Shares of IT services firm LTIMindtree LTIM.NS rise 2% to 6,052 rupees, their highest in over a month

** Stock is among top pct gainers on the Nifty IT index .NIFTYIT, which is up 1.54%

** India's biggest insurer Life Insurance Corporation of India LIFI.NS raises stake in co from 5.033% to 7.034% via open market purchase

** Analysts' avg rating on stock is "hold," same as that on peers Tech Mahindra TEML.NS, Wipro WIPR.NS, HCL Technologies HCLT.NS

** Their median PT on LTIM is 6390 rupees - LSEG

** Stock down 3.9% YTD, vs 20% gain in the Nifty IT index

(Reporting by Aleef Jahan in Bengaluru)

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Nov 21 (Reuters) - Life Insurance Corporation of India LIFI.NS:

• LIC - INCREASED SHAREHOLDING IN LTIMINDTREE FROM 5.033% TO 7.034%

Further company coverage: LIFI.NS

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Nov 19 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE STRENGTHENS STRATEGIC PARTNERSHIP WITH NEXI GROUP

• SECURES CONTRACT EXTENSION TO ENHANCE NEXI'S CORE PLATFORMS AND INFRASTRUCTURE

Source text: ID:nBSE1XFQvw

Further company coverage: LTIM.NS

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Oct 25 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE - UNIT NIELSEN & PARTNER IN AUSTRALIA DEREGISTERED

Source text for Eikon: ID:nBSEc3hygJ

Further company coverage: LTIM.NS

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