LTIMindtree joins hands with NVIDIA to modernise India’s tax system: All you need to know

LTIMindtree has secured a seven-year mandate to modernise India’s national tax analytics platform under the Central Board of Direct Taxes’ Insight 2.0 programme, deploying NVIDIA-powered AI infrastructure. The move deepens the company’s public sector digital footprint even as its recent quarterly profit missed Street estimates.

AI-led overhaul of tax analytics

In an exchange filing on Thursday, February 26, LTIMindtree said it will collaborate with NVIDIA to strengthen tax administration through scalable artificial intelligence and advanced analytics.

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Under the Insight 2.0 initiative, the company will deploy a secure cloud environment powered by NVIDIA AI infrastructure. The platform is aimed at simplifying workloads and delivering real-time insights to the CBDT.

LTIMindtree’s BlueVerse platform will act as the intelligence backbone of the programme. It will enable AI integration across operational layers of the tax system. Key features include a smart citizen portal, automated campaign management, enhanced case workflows and AI-driven helpdesk support.

Gururaj Deshpande, chief delivery officer at the company, said the partnership combines NVIDIA’s AI expertise with BlueVerse to build a transparent and citizen-friendly tax system at scale.

Yogesh Agrawal, vice president of data center GPU business at NVIDIA, said integrating full-stack AI infrastructure will enable secure, high-performance and scalable digital governance for a programme of national importance.

Rebranding to LTM

The company also said it is in the process of rebranding from LTIMindtree to LTM, subject to shareholder approval.

LTIMindtree is part of the Larsen & Toubro Group and operates in over 40 countries with more than 87,000 employees.

Q3 Results Highlights

LTIMindtree reported a sharp 30.5 per cent quarter-on-quarter (QoQ) decline in consolidated net profit to Rs 959.6 crore for Q3 FY26, despite a 3.72 per cent sequential rise in revenue.

Revenue from operations rose to Rs 10,781 crore in the December quarter, reflecting steady demand across key verticals. However, profitability was impacted by a one-time charge linked to the implementation of new labour codes.

The company said exceptional items related to the new labour codes amounted to Rs 590.3 crore during the quarter. Excluding this impact, net profit would have stood at Rs 1,401.3 crore.

On a year-on-year (YoY) basis, reported net profit fell 11.7 per cent, while revenue grew 11.6 per cent. The divergence underscores the distortion caused by the exceptional charge.

Adjusted performance remains stable

On an adjusted basis, performance remained resilient.

Adjusted net profit rose 1.5 per cent QoQ and 29 per cent YoY to Rs 1,401.3 crore. Adjusted operating EBIT came in at Rs 1,737.1 crore, up 5.4 per cent sequentially and 30.7 per cent from a year earlier.

EBIT margin improved to 16.1 per cent in Q3 FY26, compared with 13.8 per cent in the year-ago quarter. The expansion reflects better execution and operating leverage.

Revenue growth steady; deal wins stable

In dollar terms, revenue stood at $1,208 million, up 2.4 per cent QoQ and 6.1 per cent YoY. In constant currency terms, growth was 2.4 per cent sequentially and 5.2 per cent annually.

Order inflow for the quarter was $1.69 billion, marginally higher than $1.68 billion in the corresponding quarter last year. The company ended the quarter with 746 active clients, indicating a stable and diversified enterprise base.

Stock performance

Shares of LTIMindtree were trading around Rs 4,508.50, down 1.11 per cent at 01:11 am. The stock has declined 24 per cent over the past month