3 Indian AI Stocks With P E Under 25x

The race between the US and China for AI leadership has pushed artificial intelligence from buzzword to geopolitical priority. That global contest has sharpened attention on Indian AI players that build chips, software and cloud tools powering this shift. Investors watching this trend are looking for opportunities where expectations still lag potential. This article breaks down three Indian AI related stocks from our undervaluation list that may merit closer inspection.

The three Indian AI related stocks below are only a sample from a wider opportunity set, and the full screen surfaced 2 more businesses with equally detailed stories that are not covered here.

If you want to move beyond ideas and start lining up concrete candidates for further research, head straight to the Undervalued Artificial Intelligence/ AI Stocks screener to identify and analyze the highest conviction AI opportunities that match your own criteria.

Tanla Platforms (NSEI:TANLA)

Overview: Tanla Platforms runs cloud-based communication tools where its Surbo conversation AI and Wisely Platform automate large scale customer messaging across chat and voice channels.

Operations: Tanla Platforms generates about ₹46.0b from its CPaaS provider segment, primarily through messaging and AI-driven communication services for enterprises.

Market Cap: ₹66.4b

Tanla Platforms matters for this AI screener because its Surbo and Wisely engines plug directly into how enterprises bring ChatGPT-style conversations into everyday customer messaging.

"Although WhatsApp and broader OTT messaging volumes are expanding and Tanla has been recognized as Meta partner of the year, frequent pricing changes from Meta and withdrawal of certain incentives can compress unit economics and limit the uplift to revenue and earnings if enterprises resist higher costs or slow adoption."

The outcome of Tanla’s AI messaging opportunity will depend on how this underlying pressure influences pricing power and profitability.

That pricing squeeze is exactly why reading the full narrative for Tanla Platforms can clarify whether Tanla Platforms is quietly building leverage or letting Meta driven pressure dictate the story.

KPIT Technologies (NSEI:KPITTECH)

Overview: KPIT Technologies builds software, AI systems, and cloud-linked tools that help global automakers run autonomous, software-defined and electric vehicles.

Operations: KPIT Technologies earns revenue mainly from UK and European clients at about ₹34.7b, with sizeable contributions from the Americas and Rest of the World.

Market Cap: ₹143.5b

KPIT Technologies matters for this AI screener because its autonomous driving and ADAS software stack turns raw vehicle sensor data into on-road decisions, tightly linking AI perception, planning and cloud validation with the automotive shift toward software-defined cars.

"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."

The crux now is how one quiet shift in the software mix changes the earnings profile that investors eventually see in the numbers.

That mix shift is the real story, and the full narrative for KPIT Technologies shows whether KPIT Technologies is quietly building an earnings engine or just masking future volatility.

Newgen Software Technologies (NSEI:NEWGEN)

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

Operations: Newgen Software Technologies generates about ₹16.1b from software and programming, with clients spread across India, the USA, APAC and EMEA.

Market Cap: ₹71.3b

Newgen Software Technologies matters for this AI screener because NewgenONE turns documents, processes and customer conversations into machine-readable data that can be acted on by generative AI.

"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 really moves the dial now is how one shift in where that recurring AI work lands shows up in future margins and cash generation.

That margin shift is exactly where the story turns, and the full narrative for Newgen Software Technologies shows how Newgen Software Technologies could turn today’s interest into tomorrow’s recurring engine.

Seeking Fresh Alternatives Before They Fly

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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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