Artificial Intelligence (AI) has become one of India’s fastest-growing investment themes, with several emerging companies delivering strong financial performance. For investors looking at affordable AI-related stocks, Return on Equity (RoE) is a useful measure to judge profitability and capital efficiency. This list highlights the best AI stocks under ₹100 for December 2025, based on their RoE and latest business updates.
| Company Name | ROE (%) | Market Cap (₹ crore) | PE Ratio | PB Ratio | EPS (Q) | ROCE (%) |
| Magellanic Cloud Ltd | 22.21 | 3940.86 | 38.37 | 7.61 | 0.48 | 25.57 |
| Shradha AI Technologies Ltd | 13.46 | 212.36 | 22.07 | 2.44 | 0.44 | 13.59 |
| Sagility Ltd | 7.30 | 23420.69 | 43.44 | 2.81 | 0.53 | 9.03 |
Magellan Cloud posted steady Q2 FY26 results with revenue of ₹164.44 crore, up 4.54% year-on-year, and total income rising 5.42%. PAT increased 13.10% to ₹27.62 crore. The company secured over ₹118 crore in new orders, including major railway and highways surveillance projects. Its e-surveillance segment performed strongly. Both the company and its subsidiary earned CMMI Level 3 ratings. Management expects stronger growth in Q3 and Q4.
Riaan Ventures will acquire a 4.26% stake in Shradha AI Technologies through an inter-se transfer at ₹38.40 per share. The transaction involves 25,99,555 shares and is exempt from open-offer rules since it is a promoter group transfer. The deal will take place on or after 11 December 2025. As it does not affect the company’s operations or financial performance, the overall sentiment remains neutral.
Sagility reported strong Q2 FY26 results with revenue of ₹16,585 million, up 25.2% year-on-year. Organic growth reached 16%. The Payer business grew 24.2%, while the Provider segment expanded 33.4%. Adjusted EBITDA rose 25.6% to ₹4,352 million with a 26.2% margin. The company added new clients worth US$34 million in contract value, raised its revenue guidance, declared a small interim dividend, and deployed AI solutions across clients. Strong H2 performance is expected.
Read more: Best Real Estate Mutual Funds in December 2025 Based on 3Y CAGR.
AI-focused companies continue to show strong growth momentum in India, supported by rising digital adoption and new technology deployments. Stocks such as Magellanic Cloud, Shradha AI Technologies, and Sagility offer varied business strengths, backed by their operational updates and financial metrics. However, investors should always analyse fundamentals, risks, and long-term prospects before making any decision, especially in fast-evolving sectors like AI.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Dec 7, 2025, 9:30 AM IST
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