
Artificial Intelligence (AI) continues to remain a key growth driver within India’s technology ecosystem, with companies increasingly integrating AI across cloud computing, analytics, automation, digital engineering, and enterprise software solutions.
Government led digital initiatives, rising enterprise technology spending, and global demand for AI enabled transformation services are strengthening India’s position as a major AI services hub.
As businesses accelerate automation and data driven decision making, IT and engineering companies with AI capabilities are witnessing sustained investor interest.
In this article, we highlight some of the best AI stocks to watch in February 2026, ranked based on their 5 year CAGR performance.
| Name | Sub Sector | Market Cap (₹ Cr) | PE Ratio | 5Y CAGR (%) |
| Persistent Systems Ltd | Software Services | 85,672.89 | 61.19 | 43.60 |
| Saksoft Ltd | IT Services & Consulting | 2,066.12 | 18.99 | 41.92 |
| Zensar Technologies Ltd | IT Services & Consulting | 13,334.90 | 20.52 | 20.79 |
| Bosch Ltd | Auto Parts | 105,277.55 | 52.24 | 17.98 |
| Oracle Financial Services Software Ltd | Software Services | 57,773.59 | 24.28 | 15.75 |
| Cyient Ltd | Software Services | 10,990.27 | 17.85 | 9.71 |
| Affle 3i Ltd | Advertising | 21,941.09 | 57.46 | 7.85 |
| L&T Technology Services Ltd | Software Services | 37,197.22 | 29.37 | 6.18 |
| Kellton Tech Solutions Ltd | IT Services & Consulting | 949.52 | 11.91 | 1.37 |
| Happiest Minds Technologies Ltd | IT Services & Consulting | 5,587.10 | 30.26 | 1.45 |
Note: The list is based on available data as of February 16, 2026 and sorted by 5 year CAGR.
Persistent Systems operates in software services including cloud engineering, AI led analytics, digital transformation, and enterprise modernization solutions. The company continues to benefit from strong global demand for AI enabled software development.
Saksoft provides IT consulting and digital transformation services with expertise in business intelligence, analytics, and data engineering key enablers of AI adoption among enterprises.
Zensar Technologies delivers digital engineering and IT services across industries, leveraging AI, automation, and cloud technologies to enhance enterprise productivity.
Bosch integrates AI into smart mobility, industrial automation, and connected vehicle ecosystems, positioning itself within the growing AI driven automotive technology landscape.
Oracle Financial Services Software develops banking and financial technology platforms that increasingly incorporate AI for risk management, analytics, fraud detection, and digital banking solutions.
| Name | Debt to Equity |
| Bosch Ltd | 0.01 |
| Oracle Financial Services Software Ltd | 0.01 |
| Zensar Technologies Ltd | 0.03 |
| Affle 3i Ltd | 0.03 |
| Persistent Systems Ltd | 0.05 |
| Cyient Ltd | 0.09 |
| L&T Technology Services Ltd | 0.09 |
| Saksoft Ltd | 0.12 |
| Kellton Tech Solutions Ltd | 0.34 |
| Happiest Minds Technologies Ltd | 0.79 |
Note: The list is based on available data as of February 16, 2026 and sorted by debt to equity.
| Name | Net Profit Margin |
| Oracle Financial Services Software Ltd | 33.28 |
| Affle 3i Ltd | 16.18 |
| Saksoft Ltd | 12.09 |
| Zensar Technologies Ltd | 11.94 |
| L&T Technology Services Ltd | 11.64 |
| Persistent Systems Ltd | 11.59 |
| Bosch Ltd | 10.66 |
| Happiest Minds Technologies Ltd | 8.53 |
| Cyient Ltd | 8.26 |
| Kellton Tech Solutions Ltd | 7.25 |
Note: The list is based on available data as of February 16, 2026 and sorted by net profit margin.
India’s AI ecosystem continues to expand rapidly, supported by enterprise digitisation, global outsourcing demand, and technological innovation. Companies with strong digital engineering capabilities and consistent long term growth metrics remain key participants in this evolving sector.
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: Feb 17, 2026, 10:24 AM IST

Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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