Artificial intelligence (AI) is creating new business opportunities across India’s technology, automotive, banking, advertising and retail sectors. Companies are using AI to automate work, improve efficiency, analyse data and develop new services. As adoption increases, several listed Indian companies with AI-related businesses are attracting investor attention in 2026.
AI Stocks to Watch in India in 2026: 6 Indian Companies to Track in 2026 as AI Demand Rises
India’s AI market is projected to exceed $7 billion in 2026 and grow to more than $35 billion by 2032, according to industry estimates cited in the report. Here are six companies to watch as AI adoption expands across different industries.
Bosch Ltd
Bosch Ltd, the Indian subsidiary of German technology group Robert Bosch GmbH, is developing technology for vehicles, manufacturing and industrial applications. Its business includes automotive components, sensors, software and intelligent mobility solutions.
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AI can help improve vehicle safety, identify equipment problems before they cause breakdowns and automate manufacturing processes. Bosch could benefit as vehicle manufacturers increasingly adopt connected technologies and intelligent systems. In Q3 FY26, Bosch reported revenue of Rs 48,856 million, an increase of 9.4% year-on-year (YoY). Its net profit rose 16% to Rs 5,321 million.
Transline Technologies
Transline Technologies is an Indian company working in AI-based surveillance, security and monitoring systems. Founded in 2001, the company has experience in biometric identification, video analytics and command centres.
Its AMPLY platform focuses on helping retailers manage store operations. The platform tracks standard operating procedures, supports store audits and improves communication between outlets. Its image recognition technology can identify problems such as incorrect product displays or visual merchandising that does not follow company guidelines. AI-generated reports can also help retailers identify underperforming stores and take corrective action.
Transline Technologies has filed a draft red herring prospectus (DRHP) for an initial public offering (IPO). The company is among the emerging AI-focused businesses that investors may track as its IPO progresses.
Persistent Systems
Persistent Systems provides software development, cloud computing, data analytics and digital transformation services to businesses. It is expanding its AI capabilities to help companies automate processes, upgrade existing software and introduce generative AI applications.
Businesses are increasingly looking beyond AI experiments and seeking solutions that can reduce costs, improve productivity and generate revenue. Persistent’s software engineering expertise could help it benefit from this demand. For FY25, Persistent Systems reported revenue of $1.41 billion, representing 18.8% YoY growth. Its net profit increased 28% to Rs 1,400.2 crore.
Oracle Financial Services Software
Oracle Financial Services Software (OFSS) provides software to banks and other financial institutions. Its solutions cover banking operations, risk management and regulatory compliance. AI can help financial institutions identify suspicious transactions, detect potential fraud, monitor risks and understand customer behaviour. These applications are becoming increasingly important as digital banking expands.
In Q3 FY26, OFSS reported revenue of Rs 19,659 million, up 15% YoY. Net profit increased 13% to Rs 6,096 million. Its established banking software business could provide opportunities to introduce more AI-enabled services.
L&T Technology Services
L&T Technology Services (LTTS), part of the Larsen & Toubro Group, provides engineering and research services to industries including automotive, healthcare and manufacturing.
The company uses technologies such as AI-assisted engineering, digital twins and intelligent automation. Digital twins are virtual models of physical products or systems that help companies monitor performance and test changes before implementing them in the real world.
These technologies can help manufacturers reduce development time, improve product quality and lower operating costs. In Q3 FY26, LTTS reported revenue of Rs 29,235 million, up 10.2% YoY. Its earnings before interest and tax (EBIT) margin improved to 14.6%.
Affle 3i
Affle 3i, formerly known as Affle India, operates an AI-powered digital advertising platform. Its technology helps advertisers identify relevant audiences, improve advertising campaigns and attract customers through mobile and digital channels.
AI allows advertisers to analyse consumer behaviour and target advertisements more effectively. This can help businesses improve campaign performance and make better use of their advertising budgets.
In Q4 FY25, Affle reported revenue of Rs 7,147.74 million and net income of Rs 1,193.24 million. Its focus on AI-driven advertising could support its business as companies increase spending on digital marketing.
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