For decades, Infosys, TCS, and Wipro were the flag-bearers of India’s IT sector—delivering consistent growth and compounding returns. But the environment is changing. Revenue slowdowns, shrinking margins, and cautious global clients have made these once-reliable names less attractive. The shift in investor appetite is clear: technology investing is moving from legacy IT services to artificial intelligence (AI).

AI is no longer a distant bet—it’s embedded into decision-making, process automation, and customer engagement across industries. A handful of listed Indian companies are standing out, outperforming their IT peers, and capturing investor attention.

Here are three AI stocks at the forefront of this trend.

Affle 3i: AI-driven adtech platform

Affle has carved a niche in digital advertising with its ROI-focused cost-per-converted-user (CPCU) model, which ensures advertisers pay only when meaningful outcomes—such as user conversions or offline transactions—are achieved. This contrasts with traditional adtech models dependent on clicks and impressions.

Key highlights:

1. CPCU accounted for nearly all revenue in FY25 (99.6%) and Q1FY26 (99.9%).
2. The platform powered campaigns across 3.7 billion connected devices in Q1FY26, spanning 130+ countries.
3. Its IP portfolio includes 36 patents (15 granted, 21 pending).

Financial momentum remains strong:

1. FY25 revenue grew 23% to ₹2,266 crore, while PAT rose 29% to ₹382 crore.
2. Q1FY26 results showed 19.5% revenue growth and 22% PAT growth, with margins expanding for the fifth straight quarter.
3. Strong geographies: India & emerging markets contributed 72.3%, developed markets 27.7%.

Affle focuses on high-growth segments like e-commerce, fintech, gaming, and healthtech. Its stock has risen 30% in six months to ₹2,050. The company’s long-term goal: 10x growth by 2035, powered by its “innovation, impact, and intelligence” framework.

NetWeb Technologies: AI-powered supercomputing leader

NetWeb Technologies dominates India’s high-performance computing (HPC) space, building supercomputers and AI infrastructure. Its credentials include being the manufacturer behind AIRAWAT, India’s fastest AI supercomputer, and partnerships with Nvidia for next-gen chips.

Key highlights:

1. Over 500 HPC systems installed nationwide.
2. Balanced portfolio across HPC (₹406 crore), private cloud/HCI (₹403 crore), and AI systems (₹169.4 crore).
3. More than 5,000 GPU-based AI systems deployed.

Financial growth is rapid:

1. FY25 revenue surged 59% to ₹1,149 crore; PAT rose 51% to ₹114 crore.
2. Q1FY26 revenue doubled year-on-year to ₹301 crore, with PAT up 100%.
3. Return ratios are robust—RoE at 24% and RoCE at 32.6%.

NetWeb’s growth runway is clear:

1. Robust ₹3,971-crore pipeline with major wins like a ₹1,734-crore contract for India’s sovereign AI infrastructure project.
2. Orders tied to Nvidia’s Blackwell architecture place it at the heart of India’s AI build-out.
3. The stock has gained 123% in six months, now trading at ₹3,588.

Oracle Financial Services Software (OFSS): riding Oracle’s AI wave

As Oracle Corporation’s India-listed arm, OFSS benefits from the parent’s global AI-led cloud expansion. It provides financial software solutions, including Oracle Flexcube and Oracle Banking, which are used by banks in over 140 countries.

Key highlights:

1. FY25 revenue grew 7% to ₹6,847 crore; PAT also rose 7% to ₹2,380 crore.
2. Operating margins remain stellar at 44%.
3. Global reach: 91% of revenue comes from outside India.

The real trigger for OFSS lies in Oracle’s aggressive cloud roadmap:

1. Oracle expects OCI revenue to grow 77% this year to $18 billion, scaling to $144 billion in four years.
2. Its contracted revenue backlog has soared 359% to $455 billion.

This momentum creates a natural tailwind for OFSS, positioning it as a key beneficiary of financial services’ AI-driven transformation. Its stock is up 13% in six months to ₹8,999.

The future of tech investing in India

The decline of traditional IT services does not signal the end of tech investing—it marks a shift. The opportunity has moved to AI, where companies like Affle, NetWeb, and OFSS are building distinct competitive edges:

1. Affle focuses on consumer intelligence and adtech.
2. NetWeb powers the hardware backbone of AI in India.
3. OFSS rides on Oracle’s global AI-cloud expansion.

Together, they reflect the new narrative of Indian technology: one where AI is not just a buzzword, but a driver of growth, margins, and investor returns.

Feel free to share your experiences and insights in the comments below. Let’s continue the conversation and grow together as a community of traders and analysts.

By sharing this experience and insights, I hope to contribute to the collective knowledge of our professional community, encouraging a culture of strategic thinking and informed decision-making.

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Disclaimer

This article should not be interpreted as investment advice. For any investment decisions, consult a reputable financial advisor. The author and publisher are not responsible for any losses incurred by investors or traders based on the information provided.