The Ministry of Road Transport and Highways has proposed making Vehicle-to-Vehicle, or V2V, communication systems mandatory across newly manufactured vehicles from 1 October 2028.
The proposal covers vehicle categories L, M, and N, bringing two-wheelers, three-wheelers, passenger vehicles, buses, trucks and other goods vehicles within its scope.
Unlike traditional safety technologies that react after a hazard is visible to the driver or detected by the vehicle’s sensors, V2V communication alerts vehicles to hazards outside the driver’s line of sight.
Here are three stocks you can watch following the proposed draft notifications.
#1 KPIT Technologies
KPIT Technologies is a pure-play Software and Engineering Research & Development (ER&D) partner to the automotive and mobility ecosystem.
KPIT Technologies directly benefits from Vehicle-to-Vehicle (V2V) communication through the surging demand for Software-Defined Vehicle (SDV) architectures and connected mobility platforms.
As global automakers integrate V2V safety and autonomous features, KPIT is well positioned to provide critical middleware, ADAS software, and specialized V2X integration services.
The company secured TCV of new engagements totaling US$ 349 m in Q4FY26. Meanwhile, KPIT has deployed its Next Gen Mobility Intelligence Product – Beacon across multiple OEMs.
The same is designed for enterprise scale & deterministic output in safety-critical mobility engineering and aligned to automotive-grade processes & standards with human in loop principles.
KPIT is also to acquire strategic stake in Cymotive, strengthening AI-led automotive cybersecurity capabilities. The initial investment would be US$ 10 m in Preference Capital, which would get converted to 26% equity capital, based on the achievement of performance milestones by Cymotive.
This acquisition will strengthen KPIT’s strategic focus on building deep, future-ready competencies required to deliver comprehensive software strategy and execution for mobility OEMs globally.
KPIT Financial Snapshot
| Year Ending | March 2023 | March 2024 | March 2025 |
| Net Sales (m) | 33,650 | 48,715 | 58,423 |
| Sales Growth % | 38.3 | 44.8 | 19.9 |
| Net Profit (m) | 3,869 | 5,985 | 8,396 |
| Net Margin % | 11.5 | 12.3 | 14.4 |
Source: Equitymaster
On the financial front, KPIT reported revenues of Rs 16,750 m in Q1FY27 vs Rs 15,388 m YoY. The company reported a net profit of Rs 1,305 m vs Rs 1,770 m YoY.
#2 L&T Technology Services
Next on our list is L&T Technology Services (LTTS).
The company is a leading global engineering research and development (ER&D) services company, and a subsidiary of Larsen & Toubro.
Unlike traditional IT firms, LTTS focuses on product engineering, embedded software, hardware design, and digital transformation across key sectors: Mobility (Automotive and Aerospace), Sustainability (Industrial Products and Energy), and Tech (Telecom and Medical Devices).
It partners with global leaders to develop Software-Defined Vehicles, 5G solutions, and smart manufacturing systems.
A V2V mandate will require vehicles to process real-time safety messages—such as Forward Collision Warnings (FCW), Emergency Electronic Brake Lights (EEBL), and Intersection Movement Assist (IMA). LTTS’s ready-to-deploy platforms can significantly help with the above.
LTTS – Financial Snapshot
| Year Ending | March 2024 | March 2025 | March 2026 |
| Net Sales (m) | 96,473 | 96,422 | 109,959 |
| Sales Growth % | 9.4 | -0.1 | 14.0 |
| Net Profit (m) | 13,063 | 11,899 | 12,300 |
| Net Margin % | 13.5 | 12.3 | 11.2 |
Source: Equitymaster
On the financial front, revenue for the quarter came in at Rs 29.4 bn, representing growth of 2.9% sequentially and 11.5% YoY. EBIT margin for the quarter stood at 15.7%, an improvement of 50 bps sequentially and 200 bps YoY.
Net profit for the quarter was Rs 3,520 m, up 1.5% sequentially and 17.4% YoY, 12% of revenue.
In Q1, LTTS recorded large deal TCV wins of nearly US$ 100 m, with a few large deal wins that were supposed to close in Q1 having moved to early part of Q2 right now.
Moving ahead, the management says they believe that 6-layer AI cake is real, and LTTS is uniquely positioned with capabilities spanning the entire tech stack – from energy, chips, infrastructure, to data engineering, AI models and real-world applications.
The management says that, looking ahead, they remain committed to delivering a 13-15% CAGR over the next 5 years while maintaining EBIT margins of 16-17%.
#3 Tata Elxsi
Next on our list is Tata Elxsi stock.
Tata Elxsi is a global design-led technology and Engineering Research & Development (ER&D) services company under the Tata Group. The company focuses on Software-Defined Vehicles (SDVs), Electric Vehicles (EVs), Autonomus Driving (ADAS), connected mobility platforms, and infotainment systems.
V2V (Vehicle-to-Vehicle) communication can drive growth for Tata Elxsi’s core automotive division by boosting demand for high-margin embedded software, sensor fusion, and ADAS engineering.
Tata Elxsi – Financial Snapshot
| Year Ending | March 2024 | March 2025 | March 2026 |
| Net Sales (m) | 35,521 | 37,290 | 37,574 |
| Sales Growth % | 13.0 | 5.0 | 0.8 |
| Net Profit (m) | 7,922 | 7,849 | 6,284 |
| Net Margin % | 22.3 | 21.0 | 16.7 |
Source: Equitymaster
In Q1FY27, Tata Elxsi passed a key milestone of crossing more than Rs 10,000 m of quarterly reporting operating revenues by delivering Rs 10,211 m in the first quarter of FY27. In constant currency terms, revenue grew 6.5% year-on-year (YoY).
The management says they continue to invest through scaling newly launched platforms such as ViTel, and AnaTel, reimagining its offerings with AI, GenAI, and taking center stage in medtech and healthcare events.
In Q1FY27, Tata Elxsi accelerated its efforts to expand platform-led offerings. The Neuron platform portfolio has enabled Sky in Europe to transition towards zero-touch network operations with enhanced cybersecurity, delivering up to 30% to 70% efficiencies in various parameters.
The management says they are focused on sustainable growth, deepening engagements with key customers, position the firm to shape and win strategic long-term deals and add marquee customers.
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.
Happy investing.
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