LTM

** Axis Capital raises its price target on software services firm LTM Ltd LTIM.NS to 5,580 rupees from 4,650 rupees, retains 'buy' rating

** Brokerage says near-term revenue growth is likely to benefit from cross-selling opportunities within Randstad Digital customer base, while broader adoption of AI across industries will be key structural growth driver

** Axis Capital says LTM thinks the Randstad Digital acquisition is a good strategic fit, as it helps diversify both the client base and geographical exposure

** Stock rated "hold" on average by 38 analysts; median PT at 4,460 rupees - LSEG compiled data

** LTIM down ~25% YTD

(Reporting by Vijay Malkar)

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The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Updates to add graphic.

By Ujjaini Dutta

BENGALURU, Aug 14 (Reuters Breakingviews) - India's $315 billion IT industry was once easy for investors to read: work was largely billed on human effort, so headcount was a straightforward indicator of revenue growth and earnings potential. That correlation is fraying as AI tools made by Anthropic, OpenAI and others mean IT companies can serve clients with fewer people and increase revenue without hiring. New measures are needed to differentiate between firms adapting fast enough and those who can't keep up.

Traditional contracts paid IT companies for hours worked and engineers deployed. That model is fading fast, especially at smaller and more agile firms. Yet the distinction is not reflected in share prices. Investors have indiscriminately dumped shares in giants led by $90 billion Tata Consultancy Services TCS.NS , Infosys INFY.NS and Wipro WIPR.NS, alongside stakes in smaller providers like Blackstone-backed BX.N Mphasis MBFL.NS. The benchmark Nifty IT index .NIFTYIT is down 17% this year.

Some companies are starting to report "AI revenue". Venu Lambu, the boss of $15 billion LTM LTIM.NS, reckons it will become the industry's defining metric but that seems unlikely. At Tata Consultancy, this newly adopted measure is poorly explained and, worse, lumpy. A more nuanced approach is probably required.

From March next year, $5 billion Mphasis,will report “key operating metrics” such as annual recurring revenue and platform attach rate. This suggests it sees a growing share of future revenue from selling software-like services. The firm already generates less than half of its topline from the traditional "Time and Materials" billable hours model. Similarly, $8.5 billion Coforge is building up a portfolio of AI-related software products and tools including 8 AI platforms, 22 AI assets and over 100 reusable AI agents, per its latest post-earnings call.

AI is not only making engineers more productive; it is also encouraging IT firms to package their expertise into reusable software platforms as clients increasing value speed of deployment. So instead of building a custom customer-service application from scratch, an outsourcer could deploy a pre-built AI platform across dozens of clients and charge subscription fees.. Attach rate would show how often clients purchase additional products or services after adopting a platform, offering a clue about future revenue growth.

This shift to a "services-as-software" model is imminent, says Sanjeev Narsipur, Managing Director and Lead of Digital, AI and Technology Services at Alvarez & Marsal. And as this line blurs globally, AI developers OpenAI and Anthropic are also moving into enterprise services. Whatever the way forward, after decades of falling back on old metrics, IT firms need to find new ways to demonstrate their worth.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

Blackstone-backed Mphasis sees a shift toward "recurring, platform-attached revenue” the company said on July 24 in a post-earnings call. In May, the company said it would start reporting “key operating metrics” such as annual revenue runrate, platform attach rate and net retention rate for the year ending March 2028.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

Aug 6 (Reuters) - LTM Ltd LTIM.NS:

• LTM - COLLABORATES WITH CHAINGUARD

Further company coverage: LTIM.NS

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By Haripriya Suresh

BENGALURU, July 14 (Reuters) - Indian software services firm LTM LTIM.NS expects AI revenue to outpace its traditional services business, CEO Venu Lambu told Reuters, betting that enterprises will need IT companies to deploy powerful large language models from firms such as Anthropic and OpenAI.

Investor worries that increasingly capable AI models could disrupt the businesses of traditional IT services firms have led to India's Nifty IT index .NIFTYIT falling more than 23% year-to-date, on course for its second-biggest loss since 2008.

LTM, which on Monday signed a partnership with Anthropic to deploy Claude to enterprise clients, is betting that these models will help create a new implementation market for IT firms "with the right context at the right costs".

"Pretty much all" deals have an AI component to them, Lambu said, but expensive frontier models are not needed for every business scenario, he added.

Instead, the acceleration of AI adoption could see projects start off small and varied, "but once you deliver a proof point to the customer, it just multiplies with the same customers," he said, adding he expects enterprise AI adoption to accelerate in the second half of fiscal year 2027.

LTM, which posted a 6.1% year-on-year rise in first-quarter revenue, disclosed its AI revenue for the first time — $150 million on a quarterly run-rate basis, or 12% of total revenue, across three AI-native businesses.

These are segments in which AI is designed as a core component from the ground up, while enterprise AI involves embedding AI into clients' technology stacks and software processes. LTM does not count sales from enterprise AI in its AI revenue bucket.

Larger peer HCLTech reported so-called advanced AI revenue of $171 million in the June quarter, about 4.6% of overall revenue.

A "big concern" for clients is the token costs involved with using AI models, Lambu said, as AI firms are increasingly shifting to token-based pricing that charges customers based on usage. The focus is on helping companies establish governance frameworks to control usage and costs, he added.

(Reporting by Haripriya Suresh in Bengaluru; Editing by Janane Venkatraman)

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July 13 (Reuters) - LTM Ltd LTIM.NS:

• LTM - PARTNERS WITH ANTHROPIC TO ACCELERATE CLAUDE ADOPTION AND EXPAND ENTERPRISE DELIVERY

Source text: [ID:]

Further company coverage: LTIM.NS

(([email protected];))

By Haripriya Suresh and Bharath Rajeswaran

BENGALURU, July 6 (Reuters) - India's top information technology companies are expected to report another subdued quarter, as AI-driven pricing pressure, weak client spending, and global geopolitical turmoil continue to weigh on growth, nine brokerages said.

The April-to-June quarter is usually a strong one for India's $315 billion IT sector, helped by higher billing days and new project starts, but analysts expect a slow start to the fiscal year that would push back hopes of a recovery.

India's largest IT services company, Tata Consultancy Services TCS.NS, kicks off earnings on Thursday with peers Infosys INFY.NS, HCLTech HCLT.NS and Wipro WIPR.NS reporting later this month.

While India's top six IT firms are expected to report around 14% year-on-year revenue growth in rupee terms with net profit rising 12%-13%, this would largely be due to the impact of sharp rupee depreciation. Stripping out exchange rate effects, the companies are expected to post a mere 2.8% revenue growth in constant-currency terms.

Citi expects a fourth straight year of subdued growth for Indian IT firms, while JPMorgan sees revenue growth staying below 3%-4% for the "foreseeable future".

The IT sector is racing to adapt to changing customer needs as companies across the globe step up the use of AI tools and agents to cut costs and quicken software development cycles.

Software firms have slowed hiring, with TCS Chairman N Chandrasekaran saying the "day is not far" when the company would have an equal number of AI agents and employees.

Indian IT firms are in a "perfect storm," Nomura said in its earnings preview, with Middle East conflict-led uncertainty compounding AI-driven pricing pressure.

Fears that AI would disrupt the IT sector's traditional, labour-intensive business model dragged the Nifty IT index .NIFTYIT down 9.5% in the June quarter even as India's benchmark Nifty 50 .NSEI gained 6.9%.

The IT index has slumped about 28% so far in 2026, making it the worst-performing major sector in India.

The impact of AI-led disruption and weakness in client spending will be broad-based, according to PL Capital, with effects visible in the consumer, hi-tech, and telecom verticals.

"Slower decision-making and elongated sales cycle are leading to delays in revenue conversion and execution," the brokerage said in a note.

Annual revenue forecasts will be a key focus for investors. Brokerages say Infosys and HCLTech could narrow or trim the upper end of their forecasts.

Potentially higher interest rates in the U.S., which makes up about 60% of Indian IT firms' revenue, also loom.

(Reporting by Haripriya Suresh and Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala)

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June 30 (Reuters) - Ovh Groupe SA OVH.PA:

• LTM TO DELIVER SOVEREIGN CLOUD AND AI IN EUROPE THROUGH STRATEGIC PARTNERSHIP WITH OVHCLOUD

Source text: [ID:]

Further company coverage: OVH.PALTIM.NS

(Gdansk Newsroom)

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June 24 (Reuters) - LTM Ltd LTIM.NS:

• LTIMINDTREE - JOINS ATHENA COALITION TO SECURE OPEN SOURCE SOFTWARE

Source text: ID:nBSE5qfGHj

Further company coverage: LTIM.NS

(([email protected];))

June 15 (Reuters) - LTM Ltd LTIM.NS:

• LAUNCHES BLUEVERSE FOR IRUN, AN AI-NATIVE MANAGED SERVICES MODEL

Source text: ID:nBSE4Nwkv

Further company coverage: LTIM.NS

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June 10 (Reuters) - LTM Ltd LTIM.NS:

• LTM - INTRODUCES BLUEVERSE CURRENCY, AN AI-LINKED OUTCOME-BASED PRICING MODEL

Source text: ID:nBSE8WRl1t

Further company coverage: LTIM.NS

(([email protected];))

** India's software services provider LTM LTIM.NS unveiled its five-year strategy on Tuesday, targeting a doubling of revenue through AI-led growth and outcome-based offerings

** Shares of LTIM down 6.67% to 4,052 rupees

MIXED VIEWS ON EXECUTION

** Jefferies ("underperform"; PT: 3,500 rupees) says shift to outcome-based pricing will require significant changes to LTM's pricing and talent strategy and may not be easy to execute

** Adds AI-led deflation, weak discretionary spending and slower growth in key verticals could keep revenue growth in check

** BOB Capital Markets ("hold"; PT: 4,367 rupees) says LTIM's goal of doubling revenue by FY31 appears ambitious, though its target for 200 basis points of margin expansion looks more achievable

** ICICI Direct Research says co well positioned to outperform larger peers through strategic partnerships, stronger deal momentum and a shift toward outcome-based offerings

** Emkay Global ("add"; PT: 4,700 rupees) says LTM will benefit from growing AI adoption and technology convergence

(Reporting by Devika Nair in Bengaluru)

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June 2 (Reuters) - LTM Ltd LTIM.NS:

• LTM - AIMS TO INCREASE EBIT BY 200 BPS BY FY31

• LTM - TARGETS TO DOUBLE THEIR REVENUE BY FY2031

Source text: ID:nBSE2ltL5v

Further company coverage: LTIM.NS

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May 25 (Reuters) - LTM Ltd LTIM.NS:

• LTM - TO DRIVE MODERNIZATION OF IT INFRASTRUCTURE AND APPLICATION SUPPORT FOR UK-BASED SSP GROUP

Source text: [ID:]

Further company coverage: LTIM.NS

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May 22 (Reuters) - Larsen and Toubro Ltd LART.NS:

• LTM OFFERS TO ACQUIRE RANDSTAD’S TECHNOLOGY AND CONSULTING SERVICES BUSINESS IN EUROPE AND AUSTRALIA

• PROPOSED TRANSACTION VALUES OPERATIONS TO BE ACQUIRED AT AN ENTERPRISE VALUE OF EUR 160 MILLION ON A CASH AND DEBT-FREE BASIS

Source for text: Here

Further company coverage: LART.NS

(Gdansk Newsroom)

(([email protected]; +48 587 785 110;))

May 13 (Reuters) - LTM Ltd LTIM.NS:

• LTIMINDTREE - LAUNCHES BLUEVERSE M.A.X AI MARKETING SOLUTION BUILT ON SALESFORCE AGENTFORCE

Source text: ID:nNSEf3wYc

Further company coverage: LTIM.NS

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May 5 (Reuters) - LTM Ltd LTIM.NS:

• LTM- LTM AND UNIPHORE PARTNER TO SCALE DOMAIN-SPECIFIC AI ACROSS CORE BUSINESS PROCESSES

Source text: ID:nBSE8zMLbH

Further company coverage: LTIM.NS

(([email protected];))

** Shares of India's LTM LTIM.NS down 2% to 4,438 rupees, biggest loser on Nifty IT index .NIFTYIT in early trade

** The software services provider posted revenue of 112.92 billion rupees ($1.20 billion) for Q4, narrowly beating analyst expectations of 112 billion rupees- LSEG data

** Revenue from the banking and financial services unit—its largest—fell 5.3% y/y, while four other segments rose

** Jefferies ("underperform", cuts TP to 3,700 rupees) says margins fell on wage hikes and commitments to key clients, partly offset by currency gains

** Expects margins to remain range-bound at ~15.5% with limited scope for expansion

** Ambit Capital ("sell", TP: 3,880 rupees) flags lags weak growth and margin pressure, sees valuations stretched

** Antique Stock Broking ("buy", TP:5,625 rupees) sees strong FY27 outlook on deal wins and AI push, flags near-term uncertainty in deal ramp-ups

** YTD stock down 22.27% vs NIFTY IT .NIFTYIT down 22.20%

($1 = 94.1600 Indian rupees)

(Reporting by Devika Nair in Bengaluru)

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

• Q4 CONSOL NET PROFIT 13.92 BILLION RUPEES; IBES EST. 14.13 BILLION RUPEES

• Q4 CONSOL REVENUE FROM OPERATIONS 112.92 BILLION RUPEES; IBES EST. 112 BILLION RUPEES

• APPOINTS VIPUL CHANDRA AS WHOLE TIME DIRECTOR & CFO EFFECTIVE APRIL 23, 2026

• RECOMMENDS FINAL DIVIDEND OF 53 RUPEES PER EQUITY SHARE FOR APPROVAL AT AGM

Source text: [ID:]

Further company coverage: LTIM.NS

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April 6 (Reuters) - LTM Ltd LTIM.NS:

• LTIMINDTREE - TO OFFER MIT OPEN LEARNING'S UNIVERSAL AI TO WORKFORCE WITH UPGRAD ENTERPRISE

Source text: ID:nBSE9bQ3Sq

Further company coverage: LTIM.NS

(([email protected];))

Feb 26 (Reuters) - LTIMindtree Ltd LTIM.NS:

• LTIMINDTREE - COLLABORATES WITH NVIDIA TO SUPPORT CENTRAL BOARD OF DIRECT TAXES

Source text: ID:nBSEbLfPl3

Further company coverage: LTIM.NS

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

• LTM WINS $100 MILLION DEAL WITH EUROPEAN MEDTECH

• AGREEMENT TO SPAN OVER SEVEN YEARS

• LTM TO DEVELOP AND SUPPORT MEDTECH'S HEARING INSTRUMENT BRANDS

Source text: ID:nBSE91vVL

Further company coverage: LTIM.NS

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

• LTIMINDTREE - LTM ANNOUNCES STRATEGIC COLLABORATION WITH INDIAN INSTITUTE OF CREATIVE TECHNOLOGIES

• LTIMINDTREE - 5-YEAR PARTNERSHIP TO STRENGTHEN SKILLING IN CREATIVE TECHNOLOGIES

Source text: ID:nBSE5CNKvD

Further company coverage: LTIM.NS

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Updates levels, adds graphic after paragraph 11

Feb 5 (Reuters) - Rapid advances in artificial intelligence, triggered in part by Anthropic's latest automation push, could structurally erode the IT sector's high-margin application services revenues, creating downside risks to earnings and valuations, analysts warn.

Shares in India's software exporters .NIFTYIT settled 0.6% lower on Thursday, a day after plunging 6% in their worst session for nearly six years, as AI-driven automation from U.S.-based Anthropic and Palantir fuelled fears of compressed project timelines and disruption to the industry's labour-intensive business model.

The weakness has echoed across global IT stocks this week, extending a broader selloff in companies seen as most exposed to potential AI disruption.

"There is more pain ahead for Indian IT," Jefferies said, adding that Anthropic's and Palantir's claims highlight how AI could potentially erode application service revenues for IT firms.

"With application services accounting for 40–70% of revenues, firms face growth pressures, and consensus growth estimates do not fully reflect this, posing downside risks to valuations."

DISRUPTION

Indian IT firms have been ramping up AI investments and re-skilling efforts, even as weak global tech spending, delayed client decision-making and pricing pressure have weighed on the sector. Foreign investors offloaded a record $8.5 billion worth of Indian IT stocks in 2025.

However, some analysts said the sharp selloff may be overdone.

JPMorgan said that while concerns around AI disruption were not without merit, it was illogical to extrapolate the launch of some tools to an expectation that companies will replace every layer of mission-critical enterprise software.

Domestic brokerage Kotak Institutional Equities described the decline as a case of "plenty of panic over a little flutter".

Among large IT firms, Tata Consultancy Services TCS.NS, Tech Mahindra TEML.NS and LTIMindtree LTIM.NS have higher exposure to application services, which account for about 55%–60% of revenues, while HCL Tech HCLT.NS has the lowest exposure at around 40%.

Their stocks fell between 4% and 7% % on Wednesday, and extended losses on Thursday.

Brokerage Motilal Oswal estimates that 9%-12% of industry revenues could be eliminated over the next four years due to AI-led disruption.

Jefferies expects AI to weigh on IT-sector revenue growth over the next one to two years, arguing that deflation in legacy service-line revenues will more than offset gains from AI-related opportunities.

The IT sub-index has lost 17% since the start of 2025, including Wednesday's selloff, and is on track for its worst week in over four months.

(Reporting by Kashish Tandon and Bharath Rajeswaran in Bengaluru; Writing by Chandini Monnappa; Editing by Mark Potter and Louise Heavens)

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

• Q3 CONSOL NET PROFIT 9.71 BILLION RUPEES

• Q3 CONSOL REVENUE FROM OPERATIONS 107.81 BILLION RUPEES; IBES EST. 107.31 BILLION RUPEES

• Q3 RESULTS INCLUDE CHARGE OF 5.9 BILLION RUPEES DUE TO NEW LABOUR CODES

Further company coverage: LTIM.NS

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

• AWARDED INSIGHT 2.0 PROJECT TO MODERNIZE TAX PLATFORM

• PROJECT VALUED AT 30 BILLION RUPEES WITH 7-YEAR MANDATE

Source text: ID:nBSE5ydQvS

Further company coverage: LTIM.NS

(([email protected];))

By Bharath Rajeswaran and Sai Ishwarbharath B

Jan 8 (Reuters) - India's information technology firms are expected to report another muted quarter, as tepid demand in the U.S. and holiday-period client shutdowns continue to weigh on tech spending, nine brokerages said ahead of earnings.

Brokerages expect the top six IT firms by revenue to post about 4% year-on-year revenue growth and a 5% rise in profit for the December quarter on average, reflecting prolonged demand softness, compared with 6.5% revenue growth in the September quarter.

Indian software exporters last reported double-digit revenue growth in the March quarter of 2023, when digital transformation, cloud adoption and remote-work demand surged in the post-pandemic period.

The broader $283 billion Indian IT industry continues to face macro headwinds, including uncertainty over U.S. tariffs, challenges from proposed $100,000 visa fees, and subdued client spending on concerns about growth in the world's largest economy.

India's IT companies earn a significant share of their revenue from the United States, making the world's largest economy crucial for the sector.

Sector bellwether Accenture's ACN.N recent earnings beat Wall Street expectations on AI-led demand, though its unchanged growth outlook underscores the cautious near-term environment.

Although India has no pure-play AI firms, IT companies are beginning to shape AI strategies through acquisitions and partnerships. Brokerages expect AI momentum to build over the next six months and demand to pick up into 2026.

"Clients remain cautious about committing incremental spending to large programs amid macro and tariff uncertainty and a new tech cycle," said Abhishek Pathak, research analyst at Motilal Oswal Financial Services.

U.S. tariff uncertainty, visa worries and weak spending drove record foreign outflows of $8.5 billion from IT stocks in 2025, nearly half of total foreign exits from Indian equities.

The Nifty IT index .NIFTYIT fell 12.6% in 2025, making it the worst-performing sector as Indian markets lagged Asian and emerging-market peers.

Tata Consultancy Services TCS.NS, the country's largest IT firm, will kick off the earnings season on January 12. Its revenue is expected to rise about 4.2% year-on-year, slower than the 5.6% growth reported last year.

Infosys INFY.NS and HCLTech HCLT.NS are forecast to report year-on-year revenue growth of about 8.1% and 4.6%, respectively, compared with 7.6% and 5.1% in the year-ago period.

Most brokerages do not expect HCLTech to upgrade its fiscal 2026 annual revenue forecast of 2%–3%, or Infosys to raise its forecast of 3%–5%.

Earnings across domestic equities are expected to improve in the December quarter on tax cuts, policy easing, stable growth and benign inflation, even as the period remains structurally weak for IT firms.

Fewer working days due to global client holidays weigh on billing and revenue, while brokerages flag margin pressure from furloughs and wage hikes at firms such as TCS and Wipro WIPR.NS.

However, resilience in the BFSI (banking, financial services and insurance) segment, deal ramp-ups, early signs of artificial intelligence strategy formation and rupee depreciation could offer support by mid-2026, six brokerages said.

(Reporting by Bharath Rajeswaran and Sai Ishwarbharath B in Bengaluru; Editing by Sherry Jacob-Phillips)

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Oct 27 (Reuters) - LTIMindtree LTIM.NS:

• SECURES $100 MILLION MULTI-YEAR DEAL WITH GLOBAL MANUFACTURER

Source text: ID:nBSE7Xcj9w

Further company coverage: LTIM.NS

(([email protected];))

BENGALURU, Oct 16 (Reuters) - Indian IT services company LTIMindtree LTIM.NS reported a better-than-expected quarterly revenue on Thursday, as its clients increased tech spending in the banking, financial services and insurance sector, its largest segment.

Consolidated sales for the quarter rose 10.2% on-year to 103.94 billion rupees ($1.18 billion), topping analysts' average estimate of 102.37 billion rupees, according to data compiled by LSEG.

($1 = 87.9070 Indian rupees)

(Reporting by Haripriya Suresh)

(([email protected];))

By Bharath Rajeswaran and Haripriya Suresh

BENGALURU, Oct 7 (Reuters) - India's IT firms are set for another lackluster quarter as weak global demand, steep U.S. tariffs and trade jitters weigh on earnings, six brokerages said ahead of results.

Four forecast year-on-year revenue growth of about 6% and a 5.5% profit rise for the September quarter, despite seasonal strength from project cycles.

"September ... will be another muted quarter for IT," said Abhishek Pathak of Motilal Oswal Financial Services.

"As clients reel under macro and tariff uncertainty, there is hesitation to commit additional dollars to any large initiatives."

The projections point to continued single-digit growth, extending an eight-quarter trend as weak U.S. client spending weighs on the sector.

Indian IT firms last saw double-digit revenue growth in the March quarter of 2023, driven by digital transformation, cloud adoption and remote-work demand after the COVID-19 pandemic.

Tata Consultancy Services TCS.NS, India's biggest IT firm, will open the earnings season on October 9 with revenue expected to rise about 2% year on year, compared to up about 8% in the same period last year.

Infosys INFY.NS and HCLTech HCLT.NS are forecast to post revenue growth of about 8% and 9.5% respectively.

Citi Research expects fiscal 2026 to be the third straight sluggish year for IT, while Ambit Capital warned that weak macros and policy uncertainty could cap 2027 rebound.

U.S.-based Accenture ACN.N last month flagged no "meaningful change" in market conditions, while forecasting full-year 2026 revenue below the LSEG-compiled estimate of 5.3%.

Banking and financial services segment is expected to hold up, while manufacturing and retail face tariff and budget pressures, Systematix Institutional Equities said.

A planned $100,000 H-1B visa fee and a proposed 25% U.S. tax on outsourcing have added to industry concerns, with analysts seeing limited near-term impact but potential shifts in delivery models.

Foreign investors have offloaded 678.36 billion rupees ($7.64 billion) of IT stocks in 2025, the biggest sectoral outflow, dragging the Nifty IT index .NIFTYIT down 20% year-to-date against a 6% gain in the Nifty 50 .NSEI.

Still, Axis Securities said the correction in large- and mid-cap IT stocks has improved valuations, offering a better risk-reward even if a sharp rebound takes time.

($1 = 88.7370 Indian rupees)

(Reporting by Bharath Rajeswaran and Haripriya Suresh in Bengaluru; Editing by Nivedita Bhattacharjee)

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By Sai Ishwarbharath B and Haripriya Suresh

BENGALURU, Oct 6 (Reuters) - Indian IT services company LTIMindtree LTIM.NS announced on Monday that it had won its largest-ever deal, with two sources aware of the matter pegging the size at $580 million.

The sixth largest software services exporter in India said the deal was with a leading global media and entertainment company, but did not disclose the name of the client.

The company did not immediately respond to a request for comment on the size of the deal or the name of the client.

The deal comes at a time when India's $283-billion IT sector is facing macroeconomic uncertainties, tariff-related risks and changes in U.S. immigration policy. India's IT companies will report their numbers for the September quarter starting Thursday, and analysts expect muted results.

LTIMindtree had also announced its now second-largest deal of $450 million in May, which sources said was with U.S. agribusiness giant Archer-Daniels-Midland ADM.N.

The company's shares closed 3% higher on Monday, marking their biggest daily jump in nearly five months.

LTIMindtree said it will play a role in the client's efforts "to streamline operations and modernise delivery models, incorporating automation, process optimisation, and vendor consolidation".

HFS Research CEO Phil Fersht said mid-cap companies such as LTIMindtree, Coforge COFO.NS and Mphasis MBFL.NS are showing momentum in large deal wins as "they're faster and more flexible in shaping AI-led value propositions".

"While the large caps are still optimising legacy portfolios, these mid-caps are winning new logos and expanding into outcome-based, AI-powered deals," he added.

(Reporting by Sai Ishwarbharath B and Haripriya Suresh; Editing by Vijay Kishore)