L&T Mindtree Outpaces TCS and HCLTech in AI Revenue Share, Reports $150 Million Quarterly AI Run Rat

LTIMindtree has become one of the best performers in India's information technology sector, with the first big IT companies to disclose the impact of AI on its overall business. The company reported an AI-related quarterly revenue run rate of about $150 million, accounting for 12.2% of its total quarterly revenue (a high percentage compared to TCS or HCLTech).

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The disclosure was made as part of the company’s June-quarter financial results and gives investors a better picture of how rapidly AI services are becoming an important driver of business growth.

AI Accounts for a Larger Share of LTIM's Revenue

According to the company, AI-related services across its Creative AI, Industrial AI, and Business AI verticals have reached a quarterly run rate of around $150 million.

While the size of LTIMindtree's AI business is still small compared to TCS, the contribution of AI to total revenue is significantly higher.

1. * LTIMindtree: AI contributes 12.2% of quarterly revenue.
2. * TCS: AI contributes 8.5% of annualised revenue.
3. * HCLTech: Advanced AI business contributes around $155 million, or 4.2% of quarterly revenue.

The comparison shows that AI is now a more significant part of the overall business mix of LTIMindtree's business mix, even if IT companies with bigger IT companies are generating more AI revenue in absolute terms.

First Among Indian IT Firms to Quantify AI Contribution

Industry observers say that LTIMindtree’s disclosure is one of the first examples of an Indian IT services company showing AI revenue as a percentage of total sales.

With the expansion of artificial intelligence services as it is available globally, investors are looking at how much money companies make from AI-enabled services.

The company’s transparency will allow us to gain a better insight into the pace of AI adoption in India’s technology industry and how fast it is moving towards AI's adoption in India’s technology industry.

CEO Highlights AI Growth Strategy

LTIMindtree's Chief Executive Officer and Managing Director, Venu Lambu, said the company’s AI business is in three major segments:

1. * Creative AI
2. * Industrial AI
3. * Business AI

These products enable clients to adopt generative AI, make business processes more efficient, improve engineering, and accelerate digital transformation projects.

In future growth, management said AI-led services would be a growing part of the future growth as firms continue to develop automation, intelligent applications, and productivity-enhancing technologies.

AI Becoming a Key Growth Engine

The figures show how artificial intelligence is transforming the IT services industry very rapidly.

Although traditional services such as application development, infrastructure management, and consulting remain important, enterprises are putting more and more technology budgets towards AI, machine learning, data analytics, and automation in the world.

The AI revenue growth of LTIMindtree is indicative of the company’s continued focus on building new technology services for the next level of technology services.

Although TCS and HCLTech are still among the largest global IT service providers, LTIMindtree’s recent announcement highlighted how AI is now a larger part of their business.

As global companies continue to accelerate AI adoption, competition among India's largest IT firms will become more intense, and artificial intelligence will eventually be the main driver for future growth and profitability in the space.