AI Stocks in Focus: 6 Indian Companies to Watch in 2026

Artificial intelligence is finding applications across industries, from automotive manufacturing and Banking to software development, digital advertising and intelligent surveillance. As businesses look to automate processes, improve productivity and reduce costs, companies offering AI-related technologies and services are attracting investor attention.

India’s AI market is projected to exceed $7 billion in 2026 and cross $35 billion by 2032, according to industry estimates cited in the research. Against this backdrop, investors are tracking established technology companies as well as emerging businesses looking to capitalise on growing demand for AI-powered solutions.

Here are six companies with exposure to the expanding AI ecosystem in India.

Bosch Ltd

Bosch Ltd, the Indian arm of German technology major Robert Bosch GmbH, is expanding its use of software, sensors and intelligent systems across automotive components, mobility solutions and industrial technology. Its applications include vehicle safety, predictive maintenance and manufacturing automation, areas where AI can help improve efficiency and enable smarter decision-making.

In Q3 FY26, Bosch reported revenue of Rs 4,885.6 crore, up 9.4 per cent year-on-year (YoY), while net profit increased 16 per cent to Rs 532.1 crore. Its engineering capabilities and presence in the automotive ecosystem provide exposure to the growing adoption of connected vehicles and intelligent mobility solutions.

Transline Technologies

Transline Technologies operates in AI-powered surveillance, biometric identification and intelligent security systems. Founded in 2001, the company has developed solutions spanning video analytics, biometric infrastructure and intelligent command centres, combining hardware with software to support monitoring and security operations.

The company has filed its draft red herring prospectus (DRHP) for an initial public offering (IPO), bringing it into focus as investors look for businesses developing specialised AI applications.

Unlike larger technology companies that incorporate AI into existing services, Transline's business is centred on security and surveillance infrastructure. Its prospects will depend on demand for these solutions, its ability to execute projects and the extent to which its technology translates into sustainable revenue and profitability.

Persistent Systems

Persistent Systems is expanding its generative AI and enterprise AI capabilities as businesses move towards automating workflows, modernising applications and integrating intelligent tools into their operations. Its broader service portfolio includes software engineering, cloud computing, data analytics and digital transformation.

For FY25, Persistent reported revenue of $1.41 billion, representing 18.8 per cent YoY growth. Net profit rose 28 per cent to Rs 1,400.2 crore.

The company is positioned to benefit from enterprise technology spending as clients look beyond AI experimentation towards practical applications. However, the pace of adoption, the scale of commercial deployments and the returns customers achieve from AI investments will remain important factors influencing demand.

Oracle Financial Services Software

Oracle Financial Services Software (OFSS), a subsidiary of Oracle Corporation, provides banking software, compliance systems and risk management solutions to financial institutions worldwide. Its platforms serve areas where AI applications such as fraud detection, transaction monitoring and customer analytics can improve operational efficiency.

In Q3 FY26, OFSS reported revenue of Rs 1,965.9 crore, up 15 per cent YoY, while net profit increased 13 per cent to Rs 609.6 crore.

Its established presence in banking technology and integration with Oracle's broader cloud ecosystem provide a platform for incorporating AI-enabled features into financial services. The opportunity will depend on how effectively financial institutions adopt these tools and the extent to which new capabilities contribute to business growth.

L&T Technology Services

L&T Technology Services (LTTS), part of the Larsen & Toubro Group, provides engineering research and development services across automotive, healthcare and industrial sectors. Its AI-related applications include digital twins, intelligent automation and AI-assisted engineering.

The company reported Q3 FY26 revenue of Rs 2,923.5 crore, up 10.2 per cent YoY, while its EBIT margin improved to 14.6 per cent.

As manufacturers invest in smarter production systems and connected products, AI-assisted engineering could become an increasingly important part of product development and industrial operations. LTTS's exposure to multiple engineering-intensive industries gives it access to these opportunities, although revenue growth and margin performance will remain key indicators of how demand translates into financial results.

Affle 3i

Affle 3i, formerly known as Affle India, operates an AI-powered consumer intelligence and mobile advertising platform. Its technology helps advertisers identify relevant audiences, optimise campaigns and improve user acquisition across digital channels.

In Q4 FY25, the company reported revenue of Rs 714.77 crore and net income of Rs 119.32 crore. Its business model is closely linked to the growing use of data analytics and automated decision-making in digital advertising.

AI can help advertisers improve audience targeting and campaign performance, but results also depend on advertising budgets, customer acquisition costs and the ability to generate measurable conversions. Affle's performance will therefore remain linked to both digital advertising demand and the effectiveness of its technology-led offerings.

What investors should watch

India's AI opportunity extends well beyond companies developing standalone AI products. Automotive suppliers, engineering service providers, banking technology companies and digital advertising platforms are also incorporating AI into their existing business models.

However, exposure to AI does not automatically translate into higher earnings. Investors need to distinguish between companies generating meaningful revenue from AI-related services and those still developing or experimenting with such capabilities.

Revenue growth, profitability, customer adoption, order visibility and the commercial viability of AI offerings will be important factors to track. For companies such as Transline Technologies, investors will also need to assess business disclosures and financial performance as more information becomes available.

As AI adoption expands, the key question is not simply which companies use the technology, but which ones can turn it into sustainable business growth.

Disclaimer: The article is for informational purposes only and not investment advice.