As India aims to become a $7 trillion economy by 2030, the technology sector is expected to play a pivotal role, contributing around $1 trillion to the country’s GDP. The government also is making efforts to push this sector, for instance, in the recent budget 2025-2026, an allocation of ₹2000 crore has been made towards accelerating AI adoption.
Given these developments, the software industry has drawn attention as a potential area of interest for investors. In the following section, we take a look at some of the notable software sector stocks in India.
Which are the best software production stocks?
Let us have a look at the best software stocks as per market capitalisation as of 15 April 2025:
| Company | Market Cap (₹ Cr) | Current Market Price (₹) | Price-to-Earnings Ratio | Dividend Yield (%) | ROE (%) | Promoter Holding (%) |
| Tata Consultancy Services Ltd | 11,81,070 | 3,264 | 24.4 | 1.71 % | 52.4 % | 71.8 % |
| Infosys Ltd | 5,85,216 | 1,409 | 21.2 | 2.68 % | 31.8 % | 14.4 % |
| HCL Technologies Ltd | 3,85,422 | 1,420 | 22.6 | 3.82 % | 23.3 % | 60.8 % |
| Wipro Ltd | 2,56,886 | 245 | 20.8 | 2.48 % | 14.3 % | 72.7 % |
| LTIMindtree Ltd | 1,26,770 | 4,279 | 27.8 | 1.51 % | 25.0 % | 68.6 % |
( As of 15 April 2025)
1. Tata Consultancy Services Ltd
Tata Consultancy Services is a company which comes under the Tata Group. It is in the business of IT services and gives IT consultancy.
| Metrics (In ₹ Crore) | FY21 | FY22 | FY23 | FY24 | FY25 |
| Sales | 1,64,177 | 1,91,754 | 2,25,458 | 2,40,893 | 2,55,324 |
| EBITDA | 46,546 | 53,057 | 59,259 | 64,296 | 67,407 |
| Net profit | 32,430 | 38,327 | 42,147 | 45,908 | 48,553 |
| EPS (In ₹) | 87.67 | 104.74 | 115.18 | 126.88 | 134.19 |
During the recent quarter Q4FY25, the company’s revenue reached ₹64,679 crores, which was up by 5.2% compared to the previous year. The EBITDA margins of the company stood at 26%, whereas the net profit was reported at ₹12,224 crores.
During the year, the company has introduced its ignio cognitive automation software, which has already gained traction with 30 new deals and 11 implementations. Its financial services platform, TCS BaNCS, is also expanding, with 4 new clients and 4 systems going live.
Also read: List of Top Logistics Stocks in India 2025
2. Infosys Ltd
Infosys Ltd is the second-largest IT company in India, engaged in the business of consulting and helping its clients execute digital transformation strategies.
| Metrics (In ₹ Crore) | FY21 | FY22 | FY23 | FY24 | 9MFY25 |
| Sales | 1,00,472 | 1,21,641 | 1,46,767 | 1,53,670 | 1,22,065 |
| EBITDA | 27,889 | 31,491 | 35,130 | 36,425 | 29,361 |
| Net profit | 19,351 | 22,110 | 24,095 | 26,233 | 19,680 |
| EPS (In ₹) | 45.42 | 52.56 | 58.08 | 63.20 | 66.60 |
The company reported a revenue growth of 7.6% year-on-year, reaching ₹41,764 crore in Q3 FY25, with EBITDA margins in the range of 24% and profit after tax at ₹6,806 crore.
The management has revised its revenue growth guidance from 4.5% to 5% for the full year FY25, and the EBITDA margins are expected to be in the range of 20% to 22%. Apart from that, the company has developed four small language models, which together comprise approximately 2.5 billion parameters.
3. HCL Technologies Ltd
HCL Technologies Ltd is one of the leading IT companies in India, with a presence in over 60 countries. It is engaged in providing software-led IT solutions and undertaking R&D activities.
| Metrics (In ₹ Crore) | FY21 | FY22 | FY23 | FY24 | 9MFY25 |
| Sales | 75,379 | 85,651 | 1,01,456 | 1,09,913 | 29,890 |
| EBITDA | 20,048 | 20,529 | 22,628 | 24,198 | 19,022 |
| Net profit | 11,145 | 13,499 | 14,851 | 15,702 | 13,083 |
| EPS (In ₹) | 41.07 | 49.74 | 54.73 | 57.86 | 62.90 |
During Q3 FY25, HCL Technologies reported a revenue of ₹29,890 crores, marking a year-on-year growth of 5.08%. The EBITDA margins sustained at 23%, and the net profit reached ₹4,591 crores.
In the third quarter, the company signed 12 new contracts worth a total of $2.1 billion. The company also declared a ₹12 per share interim dividend and a separate ₹6 per share as a special dividend. Shareholders have been paid a total of ₹60 per share in the last one year, which constitutes 95.2% of the company’s net profit distributed among investors.
You may also read: List of Top Travel Services Stocks in India 2025
4. Wipro Ltd
Wipro Ltd is an IT company that offers a wide range of services including digital strategy advisory, engineering and re-engineering, consulting, and other technology-driven solutions.
| Metrics (In ₹ Crore) | FY21 | FY22 | FY23 | FY24 | 9MFY25 |
| Sales | 61,935 | 79,312 | 90,488 | 89,760 | 66,584 |
| EBITDA | 14,771 | 16,684 | 16,839 | 16,753 | 13,393 |
| Net profit | 10,796 | 12,230 | 11,350 | 11,045 | 9,566 |
| EPS (In ₹) | 9.85 | 11.15 | 10.34 | 10.57 | 11.84 |
The company’s revenue for Q3 FY25 remained relatively stable at ₹22,318 crores, showing a marginal year-on-year growth of 0.5%. EBITDA margin stood at 20%, while net profit was reported at ₹3,353 crores.
The Board has given a strategy to increase the shareholder return to 70% or more of net income within a three-year horizon from FY26. The company also announced an interim dividend of ₹6 per share, which is higher than last year.
Also read: List of Top Pesticides & Agrochemicals Stocks in India 2025
5. LTIMindtree Ltd
Larsen & Toubro Infotech Ltd is one of the major IT companies providing a wide range of services in the IT sector, including application development, maintenance, and outsourcing solutions to various clients.
| Metrics (In ₹ Crore) | FY21 | FY22 | FY23 | FY24 | 9MFY25 |
| Sales | 12,370 | 26,109 | 33,183 | 35,517 | 28,236 |
| EBITDA | 2,725 | 5,249 | 6,108 | 6,387 | 4,899 |
| Net profit | 1,936 | 3,948 | 4,408 | 4,582 | 3,470 |
| EPS (In ₹) | 110.76 | 225.23 | 149.03 | 154.70 | 154.25 |
Larsen & Toubro Infotech Ltd reported a revenue of ₹9,660 crores in Q3FY25, reflecting a 7.1% year-on-year growth, with EBITDA margin at 16% and net profit at ₹1,085 crores.
The company is focusing on enhancing customer engagement by investing in Voice AI technologies and has also done partnerships with Microsoft, and other companies to improve its capabilities in AI-driven solutions.
You may also read: List of Top Vegetable Oils & Products Stocks in India 2025
Bottomline
With robust growth scope, supportive policies of the government, and an increase in international demand for digital transformation, the Indian software sector seems to have a very good scope for long-term investment. However, investors need to assess their risk and then make investment decisions. If the vision is of a longer horizon, they may consider the software sector due to its growth potential.
FAQs
1. Are software production stocks suitable for investors who are beginners?
The sector stocks may be suitable for investors if the approach is aligned properly with financial long-term goals and after assessing the risk-taking ability of the individual. The tech industry offers growth potential, but at the same time, it can also be volatile. As we saw, the Nifty IT index rallied from 2020 to 2021 from 10,930 levels to 39,420 levels, but the volatility can also be seen now. The index has come into the range of 33,300, which means from 2022 to April 2025, the index was in a consolidated range and gave no returns. So, this is the reason proper analysis will be required along with a long-term horizon.
2. What role does innovation have in the success of software companies?
Innovation is the core of software companies and this sector. Companies which keep on developing new technologies or work on existing technology to improve it may be successful in maintaining a competitive edge over others and thereby increasing market share. So investors may look after such companies who are constantly bringing innovation, thereby bringing profitability for the company as well as shareholders.
3. How do software stocks react in a market downfall?
During a market downtrend, software stocks can be highly volatile because the companies are focused on discretionary tech services or consumer products. But certain spaces like cloud computing or cybersecurity, etc., may remain slightly resilient due to the continuous business need and demand. Large-cap IT companies may also sustain better compared to small and mid-sized companies due to their strong business and financials.
4. What factors impact the performance of software stocks?
There are several factors which impact the performance of software stocks like quarterly earnings reports, domestic and international demand for technology, and overall economic trends. Apart from that, in today’s time, problems like the tariff war which was started by the Trump government and the trade war that is happening between countries are also expected to impact the performance of this sector. Companies, especially those that export globally, might be impacted more.
5. Do software companies also provide dividends?
The payment of dividends depends upon the company’s management. Not all firms wish to pay dividends despite making profits. But it is not like if a company is not paying dividends, it’s not good; the company may have other plans to reinvest that profit amount into future development or to bring some innovation. So in that case, it will eventually benefit the company in the future, and that will indirectly benefit the shareholders in the form of an increase in earnings per share and share price.
