Over the last week, the Indian market remained flat while the Information Technology sector gained 5.2%, up 44% year-on-year. Earnings are expected to grow at 17% per year over the next few years. In this promising environment, identifying high-growth technology stocks like KPIT Technologies and others becomes crucial for investors looking to capitalize on the sector’s robust performance and future growth potential.

The 10 fastest growing technology companies in India

Click here to see the full list of 38 stocks from our Indian High Growth Tech and AI Stocks Screener.

Here’s a quick look at some of the choices from the screener.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: KPIT Technologies Limited provides embedded software, artificial intelligence and digital solutions to the automotive and mobility sectors in the Americas, UK, Europe and globally with a market capitalization of ₹495.74 billion.

Operations: KPIT Technologies Limited generates its revenue primarily from embedded software, artificial intelligence and digital solutions tailored for the automotive and mobility sector. With a market capitalization of ₹495.74 billion, the company serves customers in North and South America, the UK, Europe and globally.

KPIT Technologies has shown significant growth, with revenues increasing from ₹11.19 billion to ₹14.19 billion and net profit from ₹1.34 billion to ₹2.04 billion last year. The company’s R&D spend has been a key driver and reflects its commitment to innovation in automotive middleware through projects like Qorix GmbH with ZF Friedrichshafen AG, in which ZF initially invested EUR 1.35 million and plans to invest another EUR 13.65 million in equity awards and IP contributions. Earnings are expected to grow at 19% annually, outperforming the Indian market average of 16.9%, positioning KPIT as a significant player in high-growth technology sectors in India.

Simply Wall St Growth Rating: ★★★★☆☆

The story continues

Overview: Info Edge (India) Limited is an online classifieds company in the areas of employment, marriage, real estate, education and allied services in India and internationally with a market capitalization of Rs. 954.69 billion.

Operations: The company generates its revenue primarily from recruitment solutions (₹19.05 billion) and real estate services (₹3.67 billion). The recruitment segment contributes the most to its revenue streams.

Info Edge (India) has demonstrated robust growth, with revenues growing to ₹828 crore in the first quarter from ₹690 crore year-on-year and net profit to ₹233 crore from ₹159 crore. The company’s R&D spend is strategic and supports the advancement of its core segments such as Naukri.com, whose profit is expected to grow at a CAGR of 23.6% over the next three years, outperforming the Indian market average of 16.9%. Recent appointments of executives such as Mr. Aayush Rathi as Senior Vice President, Revenue Growth Strategy underscore the commitment to leverage data-driven insights for sustainable growth.

Simply Wall St Growth Rating: ★★★★☆☆

Overview: Persistent Systems Limited provides software products, services and technology solutions in India, North America and internationally with a market capitalization of ₹716.06 billion.

Operations: The company generates revenues from three main segments: healthcare and life sciences (₹23.88 billion), software, advanced technology and emerging industries (₹46.41 billion), and banking, financial services and insurance (BFSI) (₹32.08 billion).

Persistent Systems saw its profits grow 24.8% last year, outperforming the IT industry growth rate of 15.8%. The company’s revenue is forecast to grow 13.5% annually, faster than the Indian market average of 10%. With strategic R&D spend, Persistent continues to innovate in AI and software services; the recent launch of GenAI Hub is an example of this commitment. Profits are expected to grow 19.2% annually, reflecting the strong future prospects in digital transformation services and data security solutions through partnerships such as Mage Data™.

Where to now?

• Navigate the entire inventory of 38 Indian high-growth tech and AI stocks here.

• Have you already invested in these stocks? Stay up to date with all the developments by setting up a portfolio with Simply Wall St. We make it easy for investors like you to stay informed and proactive.

• Join a community of smart investors with Simply Wall St. The app is free and offers expert analysis of global markets.

Looking for other investments?

This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.

Companies discussed in this article include NSEI:KPITTECH, NSEI:NAUKRI and NSEI:PERSISTENT.

Do you have feedback on this article? Are you interested in the content? Contact us directly. Alternatively, send an email to [email protected]