3 Indian AI Stocks With Earnings Growth Up To 19%

India is preparing a planned US$25b push into deep tech, just as artificial intelligence moves from buzzword to basic infrastructure for everything from chips to cloud software. That kind of policy focus can draw attention to Indian companies that already earn real money from AI tools, data centers and automation. This article walks through 3 undervalued Indian AI stocks flagged by our screener and explains why they may deserve a closer look.

The three undervalued AI stocks covered below are just a sample from the screen, with 3 more Indian companies tied into chips, cloud infrastructure and applied machine learning that also carry compelling narratives but are not featured in this article.

If you want to quickly sort through all of them, analyze their fundamentals and identify which AI opportunities best fit your risk profile, head straight to the Undervalued Artificial Intelligence/ AI Stocks screener

KPIT Technologies (NSEI:KPITTECH)

Overview: KPIT Technologies builds AI driven automotive software, with a focus on autonomous driving, ADAS, vehicle OS, and cloud based mobility platforms.

Operations: KPIT Technologies earns revenue across the Americas, UK and Europe, and the Rest of the World, with reported inter segment eliminations.

Market Cap: ₹141.5b

KPIT Technologies matters for this AI screener because its AI based autonomous driving and software defined vehicle work plugs directly into how cars, chips and cloud services are being rewired for the ChatGPT era.

"The catalyst sequence is: Q1 FY27 results confirming organic revenue growth above 3% constant currency, Europe revenue sustaining above 8% YoY, and a first explicit disclosure of solutions as a percentage of revenue. When those three data points arrive, most likely between August and November 2026, the narrative will shift and the multiple will follow."

What happens to KPIT Technologies' AI story from here may turn on how a single pressure point reshapes both growth and resilience.

That pressure point is exactly what the full narrative for KPIT Technologies unpacks in detail, outlining how KPIT Technologies could balance acceleration, execution risk and any shift in market expectations.

Newgen Software Technologies (NSEI:NEWGEN)

Overview: Newgen Software Technologies builds the NewgenONE platform, using agentic AI and large language models to automate enterprise workflows and document heavy processes for banks, insurers, governments and other large clients.

Operations: Newgen Software Technologies generates ₹16,104 million from software and programming, with revenue spread across India, the USA, APAC and EMEA regions.

Market Cap: ₹66.9b

Newgen Software Technologies matters for this AI focused list because its NewgenONE platform turns large language model capabilities into everyday tools for customer conversations, loan journeys and document centric workflows across regulated industries.

"The ongoing acceleration in global digital transformation, including rising demand for cloud adoption, automation, and artificial intelligence, expands Newgen's addressable market. Management highlighted strong client interest in AI-led workflow solutions and recent expansion of AI-driven features, which is expected to drive recurring subscription revenue and long-term revenue growth."

What happens to Newgen Software Technologies' margins and growth engine from here will likely hinge on how one quiet shift in client buying behavior plays out.

If that shift is what matters most, the full narrative for Newgen Software Technologies walks through how client behavior, AI adoption and recurring revenue could be quietly accelerating beneath the surface.

Birlasoft (NSEI:BSOFT)

Overview: Birlasoft delivers global IT services and GenAI powered solutions like its LynX test automation platform across manufacturing, BFSI, energy and life sciences clients.

Operations: Birlasoft generates revenue of ₹20,393 million from Manufacturing, ₹13,339 million from BFSI, ₹10,986 million from Life Sciences and ₹9,327 million from Energy and Utilities.

Market Cap: ₹75.2b

Birlasoft matters for this AI screener because its LynX platform and wider GenAI toolkit turn traditional IT work into automated, ChatGPT era workflows for large enterprises.

"Surging adoption of automation and AI across global enterprises is rapidly reducing reliance on traditional IT services, and with 70 percent of Birlasoft's revenue dependent on short-term, project-based discretionary spend, the company is acutely exposed to accelerating client shifts toward in-sourcing, automation, and annuity-based contracts, which will lead to sustained revenue volatility and potential revenue decline."

The direction of Birlasoft's AI story from here depends on how a shift in deal mix reshapes both profitability and investor confidence.

As that deal mix evolves, the full narrative for Birlasoft shows how Birlasoft could turn automation risk into accelerating, higher quality, AI led revenue.

Seeking Alternatives Before The Crowd

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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