As AI booms across the globe, global technology companies are keenly looking to India to fulfil their AI aspirations.
India stands at a pivotal moment in its AI journey, one defined by impact at scale, determined to lead. As technology becomes a catalyst for inclusive growth and economic transformation, the country is emerging as a frontier AI nation for global players.
Late last year, Microsoft announced its largest investment in Asia — US$ 17.5 billion (bn) over four years (2026 to 2029) — to advance India’s cloud and artificial intelligence (AI) infrastructure, skilling and ongoing operations.
Following Microsoft, global major, Equinix Inc in April 2026 announced the opening of its fourth International Business Exchange (IBX) data center in Mumbai, MB3. It’s one of the largest retail data centers in Mumbai.
Not to be left behind, another global major, Google recently announced a US$ 15 billion (bn) investment over five years (2026-2030) to establish a comprehensive AI ecosystem in India, designed to be an important contributor to the government’s Viksit Bharat 2047 vision.
The broader thesis is that India is becoming AI attractive due to:
- Lower infrastructure costs versus the West
- Rising AI demand
- Data localisation rules
- Renewable power availability
- Geopolitical diversification away from concentrated regions
As globally AI data center boom takes place, India benefits immensely. Here are a few stocks that are well positioned in the global AI boom.
This is neither a stock recommendation nor a stock analysis on these companies.
#1 Netweb Technologies
First on our list is the stock of Netweb Technologies.
As India’s only full-stack domestic provider for high-end computing systems, Netweb is uniquely positioned to power the AI transition.
Its strategy remains firmly anchored on its 3 growth pillars: HPC, private cloud and AI systems, supported by its established technology leadership in the high-end computing system space for large order pipeline.
Netweb Technologies Financial Snapshot
| Year Ending | March 23 | March 24 | March 25 |
| Net Sales (m) | 4,450 | 7,241 | 11,490 |
| Sales Growth % | 80.1 | 62.7 | 58.7 |
| Net Profit (m) | 469 | 759 | 1145 |
| ROCE % | 66.6 | 26.0 | 30.0 |
Source: Equitymaster
The company has been doing very well financially. For Q4 FY26, revenue from operations stood at Rs 7,737 million (m), growing at 86.6% year-on-year (YoY), demonstrating strong execution momentum as the company closed the year on a high note.
Net profit for the quarter stood at Rs 706 m, a 65.7% (YoY) growth with a net profit margin of 9%. For the full year, net profit stood at Rs 2,058 m, up 80.9% (YoY) with a PAT margin of 9.3%.
The highlight of FY26 has been the performance of its AI segment, which grew 459.6% (YoY). This growth was a result of years of focused inhouse R&D, enabling Netweb Technologies to design and manufacture some of the world’s most powerful latest generation AI systems.
AI systems contributed 43.4% of the total revenue in FY26. This now positions Netweb at the center of AI infrastructure build-out. The other two core segments, HPC and private cloud continues to exhibit robust demand, reinforcing the breadth and resilience of the company’s technology portfolio.
The company enters financial year 27 from a position of strength with a firm order book of around Rs 21 bn and an L1 inclusive order book of Rs 24 bn. The management sees a long growth runway.
They are investing in R&D, manufacturing depth, and talent to ensure Netweb continues to create durable long-term value for all its stakeholders.
#2 HFCL
Next on our list is the stock of HFCL.
HFCL has become one of India’s major players in the optical fibre cable (OFC) industry and is increasingly positioning itself as a global high-capacity fibre solutions company rather than just a domestic telecom supplier.
Rising demand for optical fibre networks, telecom infrastructure and data-centre connectivity in India are positives for the company.
As global hyperscalers expand AI and cloud operations, large investments in fibre backhaul, high-speed networking and data-centre interconnections are expected.
HFCL has a presence in optical fibre cables, telecom equipment and networking solutions. The company is also expanding into defence communication systems.
HFCL Financial Snapshot
| Year Ending | March 2023 | March 2024 | March 2025 |
| Net Sales (m) | 47,433 | 44,651 | 40,645 |
| Sales Growth % | 0.3 | -5.9 | -9 |
| Net Profit (m) | 3,177 | 3,375 | 1,733 |
| ROCE % | 10.3 | 8.5 | 4.2 |
Source: Equitymaster
On the financial front, the company’s revenues surged to Rs 18,241 in Q4 FY26 m vs Rs 8,007 m YoY. HFCL reported a sharp increase in net profits to Rs 1,852 m vs losses in the March quarter of the previous financial year.
Moving ahead, HFCL’s expansion plans are progressing steadily. As highlighted in its investor presentation on 30 April 2026, the company is set to increase its Optical Fiber Cable (OFC) manufacturing capacity to 43 m fkm by June 2026.
It has already doubled its optical fiber production capacity from 14 m fkm to 28 m fkm, with an additional goal to reach 33.9 m fkm by December 2026.
Furthermore, HFCL’s planned foray into preform manufacturing aims to enhance supply-chain security, boost cost efficiency, and support long-term margin growth.
In a noteworthy strategic initiative, the company has signed a Memorandum of Understanding (MoU) to explore opportunities in the defence aerospace sector.
In a recent presentation of 30 April 2026, the company has highlighted significant orders. The OF, OFC & connectivity solutions business has an order book of Rs 134.83 bn, while the defence equipment business has an order book of Rs 22.30 bn.
The EPC and system irrigation business has an order book of Rs 66.2 bn, while the telecom equipment business has an order of Rs 8.04 bn.
Overall, the prospects of the company seem bright. However, investors should note that the stock has doubled in the last one month.
#3 KRN Heat Exchanger and Refrigeration
KRN Heat Exchanger & Refrigeration is a leading manufacturer of heat exchangers, cooling coils, and advanced HVAC & refrigeration solutions.
The product portfolio includes Fin & Tube Coils, Bar & Plate Heat Exchangers, Refrigeration Components, Complete HVAC Systems, Micro Channel Heat Exchangers, Technical Tubes, Sheet Metal Components, and Tubings etc.
KRN Heat Exchanger and Refrigeration appears well positioned in the global AI data centre boom, because AI servers generate enormous heat and require advanced cooling infrastructure.
It manufactures heat exchangers, condenser coils, evaporators, chillers and precision cooling components used in HVAC systems for data centres.
The management has highlighted data centres as a key growth driver, with India expected to see massive investments in AI and cloud infrastructure over the next few years.
KRN Heat Exchanger and Refrigeration Financial Snapshot
| Year Ending | March 2023 | March 2024 | March 2025 |
| Net Sales (m) | 2,475 | 3,083 | 4,298 |
| Sales Growth % | 58.5 | 24.6 | 39.4 |
| Net Profit (m) | 323 | 394 | 529 |
| ROCE % | 63.8 | 43.3 | 15.5 |
Source: Equitymaster
In Q3 FY26, 15% of the company’s revenue originated from AI data centers. In the last two months, KRN Heat Exchanger and Refrigeration had a consistent flow of orders, with a notable portion coming directly from the AI data centers.
The management expects data centers to play a key role in driving the company’s growth over the next 3-4 years.
On the financial front, KRN Heat Exchanger and Refrigeration reported revenues of Rs 1,532 m in Q3FY26 vs Rs 1,115 m YoY, showing a jump of 27%. The net profits too moved higher to Rs 227 m vs Rs 137 m YoY.
KRN Heat Exchanger and Refrigeration is currently in a phase of aggressive capacity expansion, transitioning from a niche component manufacturer to a diversified player in the global HVAC&R (Heating, Ventilation, Air Conditioning, and Refrigeration) market.
As of early 2026, the company’s prospects are anchored by a 6 times capacity expansion plan and a strategic pivot into high-growth segments like data centers and electric vehicle (EV) cooling.
The management says that it remains confident about the growth trajectory of the company. According to them industry outlook remains positive, the order pipeline is stable, and customer engagement across domestic and export markets continues to be encouraging.
#4 Cummins India
Last on our list is the stock of Cummins India.
Cummins India manufactures diesel and natural gas engines, power generators, and related components used across industries such as transportation, construction, manufacturing, healthcare, and data centers.
The company is a major supplier of backup power solutions through its gensets, which are widely used in commercial buildings and industrial facilities. It also provides after-sales service, maintenance, and spare parts through a large distribution network.
Data centers require uninterrupted electricity and backup power systems. Cummins India supplies high-capacity diesel and gas generator sets that act as emergency backup during grid failures.
As global technology companies and AI firms expand data center capacity in India, demand for reliable power infrastructure rises sharply.
It also provides long-term maintenance, spare parts, and servicing for these installations. Growth in hyperscale AI data centers, cloud computing, and digital infrastructure can therefore increase orders for its power systems business.
Moving ahead, the company is positive about its opportunities within the AI data center sector. In an earnings call presentation in February 2026, the management said that contributions from data centers accounted for approximately 25% of power generation revenue in Q3 FY26.
There is a strong sense of optimism at the company on the growth potential from this segment.
In the final quarter of 2025, while some industrial segments saw a dip, the power generation segment grew nearly 49%, almost entirely propelled by data center projects and hyperscale inquiries.
AI Data centers require massive, reliable power in a small footprint. Cummins India has stayed ahead by localising high-end technology. The group has 300+ unique data center customers, in 51 countries.
Other than AI data center segments, manufacturing and infra have been doing well for the company.
According to the management, a lot of movement in residential and commercial realty in the last few quarters has led to good momentum and good inquiries.
Cummins India Financial Snapshot
| Year Ending | March 23 | March 24 | March 25 |
| Net Sales (m) | 77,721 | 90,002 | 103,907 |
| Sales Growth % | 25.9 | 15.8 | 15.4 |
| Net Profit (m) | 12,282 | 17,206 | 19,999 |
| ROCE % | 27.9 | 33.8 | 34.5 |
Source: Equitymaster
On the financial front, for Q3 FY26, Cummins India posted sales of Rs 30,060 m, remaining steady on a YoY basis. Domestic sales stood at Rs 25,350 m, reflecting a slight dip of 2%, while exports rose by 2% to Rs 4,710 m.
The gross profit margin of the company for Q3 FY26 dropped to 16.6% vs 19.3% in the corresponding period of the previous year. The 3-year average ROE of the company was placed at 24.6% and the average ROCE was placed at 32.1%.
In recent quarters, the company has concentrated on improving margins through product mix optimisation and lowering raw material costs.
Should You Consider Stocks Catering to the AI Global Boom?
Investors can consider stocks catering to the AI boom in India. However, caution is important.
The opportunity is broader than just “AI software” companies. The bigger and more immediate beneficiaries are often the infrastructure enablers — data centres, optical fibre, power equipment, cooling systems, EPC, and telecom connectivity players.
India’s AI and hyperscale data centre capacity is expected to rise sharply over the next 5–7 years as global firms expand local compute infrastructure.
Many AI-theme stocks have already rallied sharply and valuations in some pockets may be ahead of earnings. Not every company mentioning AI will see sustainable profits.
Execution risks, high capex, competition, and dependence on a few large projects remain concerns. The better approach may be focusing on companies with strong balance sheets, existing order books, and clear positioning in the AI infrastructure value chain rather than chasing speculative AI stocks.
Happy investing.
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