Artificial intelligence (AI) continues to be a powerful force in the stock market, reshaping how businesses operate and how investors discover new opportunities.
In 2025, AI stocks in India are drawing even more attention as companies across sectors, from finance and healthcare to manufacturing, retail, and logistics to rapidly adopting AI-driven tools to boost efficiency and scale faster.
The technology is no longer limited to automation alone; it now plays a central role in decision-making, product development, customer engagement, fraud detection, and even supply-chain optimisation.
With India emerging as a major hub for data engineering and AI talent, the ecosystem is expanding at a rapid pace.
In this backdrop, here’s a look at four AI-focused stocks in India, ranked by market capitalisation.
| Company | Market Capitalisation (As on 17 November 2025) (Rs in million) |
| Bosch | 1,101,0808.14 |
| Persistent Systems | 963,852.50 |
| Oracle Financial Services Software | 722,538.84 |
| Tata Elxsi | 329,689.94 |
These stocks have been selected using Equitymaster’s Power Screener- Best AI stocks in India.
#1 Bosch
First on the list is Bosch.
Bosch Ltd is the flagship company of the Bosch Group in India, a leading global supplier of technology and services in sectors like mobility solutions, industrial technology, and consumer goods.
While Bosch is not a pure-play AI company, it is increasingly integrating artificial intelligence into its manufacturing and automation processes.
The company is using AI for predictive maintenance, robotics, quality control, and IoT-enabled factory operations. It is also investing in AI-enabled smart manufacturing to enhance productivity and reduce downtime. In 2024 alone, Bosch India developed more than 100 AI and data analytics use cases across areas like efficiency improvement, predictive diagnostics, and process optimisation.
Over the past five years, the company has delivered solid financial performance.
Bosch Financial Snapshot (FY21-25)
| Year | 2021 | 2022 | 2023 | 2024 | 2025 |
| Revenue (Rs in m) | 97,162 | 117,816 | 149,293 | 167,271 | 180,874 |
| Revenue Growth (%) | – | 21.3 | 26.7 | 12 | 8.1 |
| Net Profit (Rs in m) | 4,807 | 12,170 | 14,243 | 24,902 | 20,130 |
| Net profit margin (%) | 4.9 | 10.3 | 9.5 | 14.9 | 11.1 |
| Return on equity (%) | 4.9 | 11.4 | 12.9 | 20.7 | 14.6 |
| Return on capital employed (%) | 5.9 | 14.3 | 17.2 | 26.8 | 19.9 |
Its revenue has grown at a CAGR of 12.9%, while profit has expanded even faster at a CAGR of 28.1%.
Its five-year average ROE and ROCE stand at 12.9% and 16.8%, respectively, and the company continues to operate with a debt-free balance sheet.
Going forward, the company is placing its growing focus is also being placed on deploying impactful AI and Generative AI applications to strengthen operational excellence across its manufacturing ecosystem.
#2 Persistent Systems
Next on the list is Persistent Systems.
The company provides software products and technology services.
In the AI space, the company in 2024 entered into a long-term partnership with Google Cloud to drive the adoption of generative artificial intelligence (GenAI) in the United States, the United Kingdom, India, and Australia.
The agreement focuses on driving joint go-to-market activities and accelerating digital transformation for enterprises globally.
Using Google Cloud’s Gemini models, along with other innovative Google technologies, the company will develop industry-specific solutions to drive broad-based GenAI adoption.
Further, in October 2025, the company opened its new Experience Transformation (XT) Studio in Pune, India, aimed at helping enterprises design and deliver AI-enabled user experiences and improve product development processes.
The XT Studio is designed to help organisations integrate artificial intelligence into their user experience strategies from the start of the development cycle.
Over the past five years, the company has delivered solid financial performance.
Persistent Systems Financial Snapshot (FY21-25)
| Year | 2021 | 2022 | 2023 | 2024 | 2025 |
| Revenue (Rs in m) | 41,879 | 57,107 | 83,506 | 98,216 | 119,387 |
| Revenue Growth (%) | 17.4 | 36.4 | 46.2 | 17.6 | 21.6 |
| Net Profit (Rs in m) | 4,507 | 6,904 | 9,211 | 10,935 | 14,002 |
| Net profit margin (%) | 10.8 | 12.1 | 11 | 11.1 | 11.7 |
| Return on equity (%) | 16.4 | 21.2 | 24.7 | 23.2 | 23.5 |
| Return on capital employed (%) | 22.3 | 26.5 | 32.7 | 31.6 | 31.7 |
Its revenue has grown at a CAGR of 27.3%, while profit has expanded even faster at a CAGR of 32.7%.
Its five-year average ROE and ROCE stand at 21.8% and 29%, respectively, and the company continues to operate with a debt-free balance sheet.
Going forward, the company plans to deepen its adoption of emerging AI-driven technologies.
#3 Oracle Financial Services Software
Next on the list is Oracle Financial Services Software.
Oracle Financial Services Software (OFSS) provides financial software, custom application development, consulting, IT infrastructure management, and outsourced business processing services to the financial services industry.
The company delivers solutions that can be deployed both on-premises and in SaaS mode, integrating advanced technologies such as AI and machine learning to offer differentiated, cloud-ready platforms to its clients.
As banks and financial institutions accelerate their shift toward digital-first, cloud-native operations, OFSS has positioned itself as a key technology enabler. Its scalable, AI-powered offerings span core banking, risk management, anti-money laundering, governance, and compliance.
Adding to this momentum is the strength of its parent, Oracle Corporation, which recently secured several large cloud partnerships with Amazon, Microsoft, and Alphabet—allowing their customers to run Oracle Cloud Infrastructure seamlessly alongside their own platforms.
Oracle also signed one of the world’s largest cloud deals: a US$ 300 bn, five-year contract with OpenAI.
Through this ecosystem, OFSS enables clients to integrate their databases with advanced AI models like ChatGPT, Gemini, and Grok on Oracle Cloud, providing cutting-edge capabilities for smarter decision-making and automation.
Over the past five years, the company has delivered solid financial performance.
Oracle Financial Services Software Financial Snapshot (FY21-25)
| Year | 2021 | 2022 | 2023 | 2024 | 2025 |
| Revenue (Rs in m) | 49,839 | 52,215 | 56,983 | 63,730 | 68,468 |
| Revenue Growth (%) | 2.5 | 4.8 | 9.1 | 11.8 | 7.4 |
| Net Profit (Rs in m) | 17,619 | 18,888 | 18,061 | 22,194 | 23,796 |
| Net profit margin (%) | 35.4 | 36.2 | 31.7 | 34.8 | 34.8 |
| Return on equity (%) | 26.3 | 27.2 | 24.7 | 28.7 | 29 |
| Return on capital employed (%) | 37.3 | 36.6 | 35.4 | 39.5 | 40.4 |
Its revenue has grown at a CAGR of 7.1%, while profit has expanded even faster at a CAGR of 10.2%.
Its five-year average ROE and ROCE stand at 27.2% and 37.8%, respectively, and the company continues to operate with a debt-free balance sheet.
Further, as the sector continues to grow, the company is well-positioned to benefit.
#4 Tata Elxsi
Next on the list is Tata Elxsi.
Tata Elxsi, established 35 years ago, provides design and technology services across automotive, media, healthcare, and communications sectors.
The company operates several AI platforms, including TEDAX for data intelligence, IRIS for industrial AI, TETHER for connected vehicle services, NEURON for content personalisation, and TECare for digital therapeutics.
The company continues to advance AI and analytics through its AI Centre of Excellence, focusing on autonomous mobility, video analytics, predictive analytics, GenAI, and cloud computing.
With more than a decade of experience in artificial intelligence, Tata Elxsi has strengthened its capabilities further through strategic collaborations.
In July 2025, the company partnered with San Francisco-based KAVIA AI to integrate AI-powered automation across the software development lifecycle for enterprise clients.
KAVIA AI refers to its platform as “software 3.0,” a cloud-native system designed to automate the entire development process—from planning to maintenance—at enterprise scale.
Over the past five years, the company has delivered solid financial performance.
Tata Elxsi Financial Snapshot (FY21-25)
| Year | 2021 | 2022 | 2023 | 2024 | 2025 |
| Revenue (Rs in m) | 18,262 | 24,708 | 31,447 | 35,521 | 37,290 |
| Revenue Growth (%) | 13.4 | 35.3 | 27.3 | 13 | 5 |
| Net Profit (Rs in m) | 3,681 | 5,497 | 7,552 | 7,922 | 7,849 |
| Net profit margin (%) | 20.2 | 22.2 | 24 | 22.3 | 21 |
| Return on equity (%) | 27.2 | 34.3 | 36.2 | 31.8 | 27.6 |
| Return on capital employed (%) | 38.4 | 47.2 | 45.8 | 43 | 36.9 |
Source: Equitymaster
Its revenue has grown at a CAGR of 18.3%, while profit has expanded even faster at a CAGR of 25.1%.
Its five-year average ROE and ROCE stand at 31.4% and 42.2%, respectively, and the company continues to operate with a debt-free balance sheet.
Moving ahead, the company says that it will continue to invest in differentiated AI-first offerings and services.
Should You Consider Investing in AI Stocks?
Investing in AI stocks looks increasingly attractive as the technology reshapes industries and drives a new wave of digital transformation.
India’s artificial intelligence landscape is expanding at an exceptional pace. The country’s $264 billion (bn) information technology sector is projected to cross $400 bn by 2030, driven by the rising adoption of AI across global outsourcing, according to Bessemer Venture Partners.
Between FY22 and FY25, the domestic IT industry delivered an 8.1% CAGR, and the next five years are expected to maintain a similar growth trajectory. This momentum is being fuelled by enterprises increasingly embracing AI-led solutions in areas such as cloud management, analytics, automation, and large-scale digital transformation.
As AI becomes an integral part of business strategy, the report indicates a growing shift toward outsourcing contracts centred on data-driven decision-making, cybersecurity, and automation support. This structural shift positions AI-focused companies for sustained demand and long-term growth opportunities.
However, investors should remain mindful that AI-driven themes can be volatile, and stock selection requires careful evaluation of fundamentals.
Investors should evaluate the company’s fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here…
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