The IT sector in India has become a key driver of the country’s economic growth and innovation. Known for its strong service offerings such as software development, IT consulting, and business process outsourcing, India has solidified its position as a global leader in technology solutions. The IT industry is expected to reach US$ 350 billion by 2026, contributing 10% to India’s GDP. In this article, check the best IT stocks in India for January 2025 based on their 5-yr CAGR.
| Name | Market Cap (₹ in crore) | PE Ratio | 5Y CAGR (%) | 1Y Return (%) |
| Bls International Services Ltd | 20,514.20 | 65.55 | 94.75 | 54.94 |
| Persistent Systems Ltd | 99,322.64 | 90.83 | 78.60 | 76.86 |
| Newgen Software Technologies Ltd | 24,041.24 | 95.55 | 77.49 | 116.68 |
| KPIT Technologies Ltd | 40,304.38 | 67.79 | 75.43 | 1.138 |
| Tanla Platforms Ltd | 10,129.28 | 18.47 | 60.89 | -32.13 |
| Firstsource Solutions Ltd | 27,196.01 | 52.84 | 56.44 | 114.23 |
| eClerx Services Limited | 16,522.71 | 32.31 | 52.38 | 40.39 |
| Tata Elxsi Ltd | 41,762.54 | 52.72 | 51.93 | -23.03 |
| Birlasoft Ltd | 15,609.96 | 25.03 | 50.39 | -17.90 |
| Mastek Ltd | 9,524.94 | 31.72 | 48.57 | 13.57 |
Note: The best IT stocks list provided here is as of January 3, 2025. The stocks are selected from the Nifty 500 universe and are sorted based on the 5-yr CAGR.
BLS International Services Limited (BLS) is a part of the four-decades-old BLS Group with a global presence. The company offers a diversified range of services and is the biggest global player in visa application outsourcing. For FY 2024, the company reported a total income of ₹1,71,676.28 lakh, up from ₹1,53,743.88 lakh in FY 2023. The company’s profit was ₹32,562.21 lakh in FY 2024, compared to ₹20,426.58 lakh in FY 2023. In H1 FY 2025, the company’s profit was up by 74.2% YoY to ₹266.5 crore.
Key Metrics:
Persistent Systems offers software engineering and strategic services to help businesses modernise and implement digital solutions. For FY 2024, the company reported a revenue of ₹98,215.87 million, up from ₹83,505.92 million in FY 2023. The company’s profit was ₹10,934.92 million in FY 2024, which rose from ₹9,210.93 million in FY 2023. In H1 FY 2025, the company’s profit was up by 28.3% YoY to ₹6,314.1 million, from ₹4,920.4 million in H1 FY 2024.
Key Metrics:
Newgen Software Technologies is a global software company. The company is involved in the business of software product development. For FY 2024, the company reported a total income of ₹1,29,189.29 lakh, up from ₹1,00,796.45 lakh in FY 2023. The company’s profit was ₹25,160.50 lakh in FY 2024, which rose from ₹17,701.15 lakh in FY 2023. In H1 FY 2025, the company’s profit was up by 51.2% YoY to ₹1,179 lakh, from ₹780 lakh in H1 FY 2024.
Key Metrics:
KPIT Technologies is a global partner in the automotive and mobility ecosystem, driving the development of software-defined vehicles. For FY 2024, the company reported a total income of ₹49,318.08 million, up from ₹34,052.30 million in FY 2023. The company’s profit was ₹5,985.13 million in FY 2024, compared to ₹3,868.63 million in FY 2023. In H1 FY 2025, the company’s profit was up to ₹4,079.05 million, from ₹2,758.40 million in H1 FY 2024.
Key Metrics:
Tanla Platforms Ltd (formerly known as Tanla Solutions Ltd) is a cloud communications company that empowers businesses to connect with their customers and target audiences. For FY 2024, the company reported a total income of ₹3,97,043.06 lakh, up from ₹3,38,075.41 lakh in FY 2023. The company’s profit was ₹54,831.55 lakh in FY 2024, compared to ₹44,764.86 lakh in FY 2023. In H1 FY 2025, the company’s profit was up to ₹27,143.45 lakh, from ₹27,795.40 lakh in H1 FY 2024.
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The IT and BPM sector has become a major growth driver for the Indian economy, significantly contributing to the country’s GDP and public welfare.
As per the National Association of Software and Service Companies (NASSCOM), the Indian IT industry’s revenue reached US$ 227 billion in FY22, marking a 15.5% YoY growth, and is projected to have hit US$ 245 billion in FY23. IT exports from India grew by 9% in constant currency terms, reaching US$ 194 billion in FY23, with exports from the IT services industry amounting to US$ 199 billion in FY24.
India’s public cloud services market grew to US$ 3.8 billion in the first half of 2023 and is expected to reach US$ 17.8 billion by 2027. By 2026, widespread cloud adoption could create 14 million jobs and contribute an additional US$ 380 billion to India’s GDP.
Apart from the stocks mentioned, there are several other IT sector stocks in India. Do your research by analysing the company’s financials, business objectives and future prospects.
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.
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