KPIT Technologies And 2 Indian AI Stocks To Watch

Foreign investors are pouring record amounts into US stocks, while India pushes deeper into artificial intelligence through chips, software and cloud. That mix of global capital chasing AI themes and rising local ambition creates a potentially attractive environment for Indian companies tied to the ChatGPT style boom. This article highlights three Indian AI related stocks from our screener that some investors may view as undervalued and suitable for those willing to look early.

The three Indian AI related stocks covered next are only a starting sample. The full screen surfaced 3 more businesses with equally compelling narratives that are not included below.

If you want to identify and analyze a wider set of undervalued ChatGPT linked opportunities, head straight to the Undervalued Artificial Intelligence/ AI Stocks screener.

KPIT Technologies (NSEI:KPITTECH)

Overview: KPIT Technologies builds AI powered automotive software, including autonomous driving, ADAS, vehicle operating systems, and cloud to edge mobility platforms.

Operations: KPIT Technologies generates revenue across the Americas, UK & Europe, and Rest of the World, with reported inter segment adjustments reducing the consolidated total.

Market Cap: ₹141.4b

KPIT Technologies matters in this AI focused screener because its autonomous driving and vehicle software stack puts applied machine intelligence directly into cars on the road, not just in the cloud.

"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."

What happens to KPIT Technologies if one quiet pressure on its profitability resolves in favor of its higher value AI software mix?

If that margin pressure eases in KPIT Technologies’ favour, the full narrative for KPIT Technologies outlines how a richer software mix could accelerate returns while also identifying where execution risk still exists.

Newgen Software Technologies (NSEI:NEWGEN)

Overview: Newgen Software Technologies builds the NewgenONE platform, using agentic AI and intelligent document processing to automate enterprise content, workflows, and customer interactions across regulated industries.

Operations: Newgen Software Technologies generates ₹16.1b from Software & Programming, with revenue spread across India, the USA, APAC, and EMEA regions.

Market Cap: ₹68.6b

Newgen Software Technologies fits this AI focused shortlist because its NewgenONE platform turns large scale enterprise content and processes into AI readable, automatable workflows that can plug into ChatGPT style use cases.

"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 investors need to watch now is how one quiet shift in product mix shapes the balance between higher-margin AI modules and everything else.

That product mix shift is exactly what the full narrative for Newgen Software Technologies unpacks in detail, including how Newgen Software Technologies could see recurring AI revenue reshape risk and upside.

Birlasoft (NSEI:BSOFT)

Overview: Birlasoft delivers global IT services and consulting, with a strong focus on generative AI and automation platforms for enterprise workloads.

Operations: Birlasoft generates about ₹20.4b from Manufacturing, ₹13.3b from BFSI, ₹11.0b from Life Sciences, and ₹9.3b from Energy & Utilities.

Market Cap: ₹76.6b

Birlasoft matters for this AI focused screener because its LynX, TruLens, and other generative AI tools put ChatGPT style automation directly into day to day enterprise systems.

"Surging adoption of automation and AI across global enterprises is rapidly reducing reliance on traditional IT services. 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 may lead to sustained revenue volatility and potential revenue decline."

What really moves the needle for Birlasoft now is how one quiet shift in deal mix reshapes earnings quality over the next few years.

That shift starts with understanding how client preferences are already reshaping Birlasoft's project funnel through the full narrative for Birlasoft, revealing where volatility could mask a stronger long term engine.

Seeking Fresh Alternatives Before They Fly

Momentum shifts fast and the best breakout stories rarely stay under the radar for long. Scan fresh ideas before the crowd, while it matters, and consider acting while the opportunity is still developing.

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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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