It’s no secret that global investors have sharply increased their investment focus on IT companies that are heavily focused on providing AI-led solutions coupled with related expertise in cloud and data engineering services. The global investor hype towards the forthcoming IPOs of leading US-based AI players like OpenAI and Anthropic are also well recognised.
And while Indian IT companies do not have a pure-play AI-based investment theme, investors are also looking beyond the traditional large IT services companies like Infosys, HCL Tech and Wipro . For these leading IT services company, AI-based revenue is still a very small portion of their total revenues.
For instance, for HCL Tech, its AI-based revenues as a percentage of total revenues is still very small – it’s Advanced AI Revenue at $155 million (nearly Rs 1,426 crore). This New Delhi-based company had revenues of Rs 33,981 crore in the March 2026 quarter, and AI -related formed just 4.2% of its revenue in the quarter.
As a result, investors are looking at select mid-cap IT stocks, for which AI is already a key revenue driver, and they are also looking to scale up their AI-based revenues over the next few quarters.
To help readers find mid-cap IT stocks that are looking to ramp up their AI-based revenues over the next few quarters, we present three stocks. These three mid-cap IT companies already have AI as a key revenue driver, and have definite plans to ramp up their AI-based revenues over the next few quarters.
Coforge – overseas acquisition drives growth in AI-revenues
New Delhi-based Coforge uses AI extensively to offer engineering and allied services for its global clients. Its revenues grew 1.7% q-o-q to $ 489.1 million (Rs 4,450 crore) in the March 2026 quarter while its net profit grew 125% q-o-q to Rs 666 crore, given a low-base effect in Q3FY26.
In the December 2025 quarter, the company had a one-time exceptional expense of Rs 114.8 crore relating to the new labour code. Its new order intake was $ 648 million in Q4FY26, up 9.3% q-o-q.
The company is aggressively growing its AI and related revenues via a recent acquisition overseas.
Coforge’s Strategic Encora Acquisition
Coforge, in late December 2025, had signed an agreement with California-based Encora for an enterprise value of nearly $ 2.35 billion (nearly Rs 22,000 crore), and this overseas company has a strong presence in AI-led engineering, data and cloud services.
The US-based company had consolidated sales of $ 600 million for FY26, according to a recent investor presentation of Coforge.
Coforge had completed the acquisition in late April 2026. Coforge’s investor presentation has also highlighted that the combined entity will have consolidated revenues of $ 2.5 billion annual (nearly Rs 22,000 crore). Out of the above consolidated revenues, AI-led engineering, data and cloud services would have revenues of nearly $ 2 billion (nearly Rs 19,000 crore) in FY27, and its hi-tech vertical will have annual revenues of $ 170 million.
Coforge had consolidated revenues of Rs 16,402 crore (nearly $ 1.9 billion) during FY26.
Cyient – Expanding AI services via acquisition to play key role in high-end services
Hyderabad-based Cyient, which offers high-end IT solutions, turnkey ASICs (Application Specific Integrated Circuit) that are special purpose integrated chips (IC) for certain applications and proprietary applications, positioning the company as India’s leading custom chip company.
The company has also pointed out it provides solutions to over 300 global customers, including global innovators, with customers across aerospace, rail, automotive and mobility, connectivity, healthcare and spatial intelligence
In its press release for March 2026 quarter, the company has highlighted the company has deepened its digital and AI capabilities.
The company’s focus on high-end IT solutions enabled it to grow its consolidated revenues by 7.2% y-o-y on a constant currency basis to Rs 1,927 crore in the March 2026 quarter.
Understanding Cyient’s Q4 Profit Dip
However, its net profit declined 65% y-o-y to Rs 65.5 crore in Q4FY26, given charge of Rs 71.2 crore for legal-related expenses in Q4FY26 related to Cayman Islands-based Kinetic Technologies, a global provider of high-performance analog and mixed-signal integrated circuits for Rs 800 crore.
To further strengthen its AI capabilities, Cyient in May 2026, announced the acquisition of California-based TAO Digital Solutions, with expertise in data engineering, AI-enabled platform solutions, digitization, and cloud services.
TAO Digital Solutions had revenues of $ 79.1 (Rs 750 crore) million during calendar year 2025, and this transaction was done at an enterprise value of $ 218 million.
Cyient had consolidated revenues of Rs 7,268 crore during FY26.
Persistent Systems: Leveraging European Buyouts for Cloud Native Dominance
Persistent Software, an AI-led, platform-driven digital engineering and enterprise modernization partner, with its focus on software, hi-tech and emerging industries, and healthcare and life sciences.
The Pune-based company derives a very large portion of its operational income from AI-led projects for its global clients. This strategy enabled the company to grow by 3.4% quarter-on-quarter (q-o-q) to Rs 4,055.9 crore in the March 2026 quarter. Also, its net profit grew by 20.5% q-o-q to Rs 529.3 crore in Q4FY26.
Persistent Software has further expanded its Europe-based AI-presence with the recent acquisition of Estonia-based Concise Systems OÜ, and would acquire a part of its business. This acquisition would strengthen the Pune-based company’s capabilities across AI-led product engineering, distributed systems and cloud native technologies.
This AI focused division of the Estonia-based company had annual revenues of Euro 11.6 million (nearly Rs 125 crore) in a financial year, and Persistent Software would be paying Euro 5.6 million (nearly Rs 60 crore) in installments.
Valuation Verdict: Paying a Premium for AI-related stocks?
Persistent Software was broadly flat at Rs 4,840 on Tuesday. The stock trades at a consolidated P/E of 39.6 times. Over the past 5 years, the stock has traded between 32.1 times and 81 times.
Coforge was also broadly flat at Rs 1,481 on Tuesday. The stock trades at P/E of 38.8 times. Over the past 5 years, the stock has traded between 26.2 times and 77.8 times.
And Cyient ended 1.7% higher at Rs 891. The stock trades at a P/E of 20.9 times. Over the past 5 years, the stock has traded between 16.6 times and 37.9 times.
Mid-cap IT stocks with AI focus – Is it worth paying the premium?
| IT companies | Consolidated P/E |
| Persistent Software | 39.6 |
| Coforge | 38.8 |
| Cyient | 20.9 |
For perspective, the big US tech companies with a large and growing presence in AI trade at much lower valuations. For instance, Microsoft, the global leader in AI-related solutions, trades at a P/E of 21.9 times while Oracle trades at 30 times.
Readers could put mid-cap IT stocks on their watch list for 2026, and see if their expected ramp up in AI-related revenues matches expectations.
Disclaimer
Amriteshwar Mathur is a financial journalist with over 20 years of experience.
The writer and his family have no shareholding in any of the stocks mentioned in the article.
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