LTIMindtree bags $330 million contract from central tax department to upgrade tax analytics platform with AI

LTIMindtree Ltd won a contract valued at ₹3,000 crore ($332 million) from the Central Board of Direct Taxes (CBDT), making it the third-largest order for the IT services company in the past 12 months.

The contract is to build an AI‑powered programme for the modernization of India’s national tax analytics platform, LTIMindtree said in a stock exchange filing on Friday.

“Valued at around ₹3,000 crore, this seven-year mandate reinforces LTIMindtree’s leadership in enabling digital transformation leveraging advanced digital architecture and data analytics to deliver real-time insights for policymakers,” the company said in the release.

This translates to at least $47 million every year, or 1% incrementally, for the country’s sixth-largest IT services company. LTIMindtree ended last fiscal with $4.93 billion in revenue, up 4.8%.

This is LTIMindtree’s second engagement with the central tax body in less than a year. On 7 August, the CBDT awarded a ₹792 crore ($87 million) mandate to LTIMindtree to transform India’s PAN (Permanent Account Number) infrastructure. As per the terms of the deal, LTIMindtree would design, build and operate the tax body’s back-end IT, including infrastructure, security, automation and ongoing operations.

This deal comes as a shot in the arm for CEO Venu Lambu, who took over the reins in June 2025, and has already won the company its second big-ticket deal in less than a year.

On 6 October, the company announced its largest deal – a $585 million IT modernization contract with New York-based media company Paramount Global over a six-year term. At least three-fifths of this deal, or about $350 million, is new business for the company and translates into 1.3% incrementally.

The Paramount deal surpassed LTIMindtree’s seven-year, $450-million IT modernization contract with ADM, announced on 12 May. This deal translates into 1.4% growth for the Mumbai-based company.

Incremental growth

LTIMindtree, which does not share full-year or quarterly revenue guidance, is now expected to grow up to 3.3% incrementally from the three deals alone.

The company’s shares rose 4.89% to ₹6,325 as of 2:35 PM on Friday.

CEO Venu Lambu is likely to comment on this deal when the company announces its third-quarter earnings on 19 January, an executive privy to the development said. LTIMindtree does not specifically share revenue from India, which is in the rest-of-the-world category that accounts for a little more than a tenth of the business.

This deal comes as Indian IT outsourcers look inwards to drive more revenue. A week ago, HCLTech elevated Sandeep Saxena to chief growth officer to “sharpen its focus, in particular, on the India region.”

Tata Consultancy Services Ltd bagged a $1.83 billion 4G network deployment contract from state-run Bharat Sanchar Nigam Ltd in August 2023, making it among the biggest deals awarded by an Indian government body to an IT outsourcer.

For LTIMindtree, which was formed after parent Larsen & Toubro merged L&T Infotech with Mindtree in 2019, the deal comes on slowing demand recovery for IT services amid macroeconomic uncertainty, tax wars in its largest markets, and the disruptive nature of AI. The large deals could potentially offset the revenue reduction caused by these three factors.