2 AI Stocks In India: Two Companies Powering the Future of Technology
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Discover how 2 AI Stocks In India Mphasis and Netweb Technologies are driving India’s AI revolution with cloud, computing, and high-performance infrastructure. Are they future-ready investments?
The AI Boom in India
Artificial Intelligence (AI) is no longer just a buzzword. India is rapidly transforming into a global AI powerhouse, backed by a strong talent pool, growing infrastructure, and rising adoption across industries.
According to a report by Sikum and BCG, India’s AI market is projected to reach $17 billion by 2027, growing at 25–35% CAGR. Interestingly, 92% of Indian knowledge workers are already using AI, significantly higher than the global average of 75%.
Supporting this revolution is a surge in data center capacity, which crossed 1 GW in 2024 and is expected to hit 17 GW by 2030. Behind this transformation are Indian companies building the technology backbone. Let’s explore 2 AI Stocks In India : Mphasis Limited and Netweb Technologies India.
AI Stocks In India Driving AI Revolution
Mphasis Limited – AI-Led IT Transformation
Mphasis is a global IT services company specializing in cloud and AI-driven solutions. Thus making is first company among the AI Stocks in India driving India’s AI revolution. Its business mix is:
- Application Services (72%) – Custom software development and support
- BPO Services (16%) – Customer service and compliance
- Infrastructure Services (12%) – Workplace and data center management
Geographic and Client Mix:
- 81% of revenue comes from North America, with India contributing just 5%.
- 50% revenue comes from BFSI (banking and financial services), followed by technology, media, telecom, and insurance clients.
AI-Led Strategy:
- In FY24, 25% of the deal pipeline was AI-led. By FY25, this increased to 65%.
- 59% of the total contract value in the latest quarter was AI-driven.
Financial Performance:
- FY25 revenue grew 7.2% to ₹14,230 crore, primarily driven by AI deals and multi-year contracts.
- Operating profit jumped to ₹2,647 crore, with margins improving to 18.6%.
- Net profit increased 9.5% to ₹1,172 crore.
- Cash reserves doubled to ₹1,663 crore, but unbilled receivables rose sharply, posing a cash flow risk.
Risks:
- Heavy dependence on the US (82% revenue) and top 10 clients (54%).
- Sharp increase in receivables, which may pressure cash flows.
Netweb Technologies India – Supercomputing & AI Infrastructure
Second company on the list of AI Stocks In India driving AI Revolution is Netweb Technologies. Founded in 1999, Netweb Technologies is among India’s leading high-end computing solution providers. It offers end-to-end HPC (high-performance computing) solutions, including compute storage and supercomputing infrastructure.
Business Segments:
- Private Cloud & Hyper-Converged Infrastructure (37%) – Cloud tools and network interfaces.
- High-Performance Computing (36%) – Supercomputing solutions for AI research and simulations.
- AI Systems & Enterprise Workstations (15%) – In-house platforms like Qubits and SkysAI for ML and LLM applications.
- Remaining share from high-performance storage, data center services, and software.
Client Base:
- 50% government, 50% private clients, including higher education institutes, research centers, defense, and space organizations.
- Exclusive edge: One of the few Indian OEM partners of Nvidia.
Financial Performance:
- FY25 revenue grew 58%, driven by HPC and cloud solutions.
- Operating margins dipped slightly to 13.9% (from 14.2%) due to rising semiconductor and hardware costs.
- Net profit rose 50% to ₹114 crore.
- Strong repeat client base (81.4% repeat orders) ensures steady demand.
Growth Outlook:
- Management expects 35–40% revenue CAGR in the next few years.
- AI segment contribution to rise from 15% to 20% by FY26.
- Strong order book of ₹350 crore and pipeline worth ₹4,000 crore (3.5x revenue).
- Launch of Skilus, an AI infrastructure platform, positions Netweb as a future-ready player.
Risks:
- High revenue concentration: top 10 clients contribute 66%.
- Working capital intensity: receivable days increased from 93 to 155; operating cash flow fell into negative territory.
The Big Picture – AI as an Investment Theme
India’s AI revolution is not just about chatbots or language models; it’s about cloud infrastructure, computing power, and enterprise AI systems. Companies like Mphasis and Netweb are powering this revolution from behind the scenes.
However, investing in AI enablers (i.e. AI Stocks In India) requires caution:
- Mphasis is a steady IT player with improving AI adoption but faces client concentration risk.
- Netweb is a niche HPC leader with rapid growth but high working capital dependency.
Both companies stand to benefit from India’s AI boom, but execution and cash flow management remain critical.
Final Words
The AI revolution in India is inevitable, and companies building the backbone of this ecosystem have massive opportunities. Mphasis brings global IT transformation expertise, while Netweb offers unique HPC and AI infrastructure solutions.
If you’re exploring AI-related stocks, these 2 AI Stocks In India deserve attention—but keep an eye on their cash flow and client diversification.
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