3 fastest growing AI stocks to add to your watchlist

AI has emerged as one of the most talked-about themes recently.

Companies engaged in Artificial Intelligence (AI) fall into several key categories. We have companies with machine learning platforms developing ML algorithms and platforms for data analysis, predictive modelling, and automation. Firms also specialise in conversational AI, chatbots, language translation, sentiment analysis etc. 

There are also many companies in robotics and automation and those that are developing Industry-Specific AI Solutions.

ALSO READA tale of two IT giants: What the Q1 results of HCL and Tech Mahindra truly reveal

Here are 3 Indian companies that are developing, using or implementing AI at a brisk pace.

#1 Tata Consultancy Services (TCS)

First on our list is Tata Consultancy Services.  

TCS is a front-runner in AI adoption and innovation in India. The company is leveraging partnerships with global tech leaders and investing heavily in AI talent, platforms, and industrial-scale AI solutions to empower clients’ digital transformation across multiple sectors.

TCS has helped design a collection of AI-native agents for the telecommunications industry leveraging its long-standing collaboration with NVIDIA. 

TCS is working with NVIDIA to design agentic AI solutions that improve telecom operations and network management.

 These include AI-accelerated NVIDIA tools to automate processes, including specialised AI models tailored for telecom needs (large telco models or LTMs), and advanced systems like digital twins to simulate and optimise network performance. 

India’s largest IT services firm is also extensively involved in AI-driven digital transformation offerings, including AI platforms, language models, and partnerships. 

TCS Financial Snapshot (FY21-25)

(Rs m, consolidated)FY21FY22FY 23FY 24FY 25Net Sales1,641,7701,917,5402,254,5802,408,9302,553,240Net Profit325,620384,490423,030460,990487,970Return on Equity (%)37.743.146.850.951.5Return on Capital Employed (%)51.458.963.869.469.8Source: Equitymaster

On the financial front, the company’s revenue stood at Rs 634.37 billion (bn) in Q1 2026, reflecting a 1.3% growth. Tata Consultancy Services reported its Q1 FY26 results with a net profit of Rs 127.60 bn, up 6% year-on-year.

The company has done well over the last few years with compounded revenue growth of 10% over the last few years. Net profits have grown at a CAGR of 8.3% over the last 3-years. 

#2 Infosys

Second on our list is Infosys. 

Infosys is aggressively leveraging AI and generative AI (GenAI) to transform enterprise solutions and enhance digital experiences across industry sectors.

 » Read More

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