Best Midcap IT Stocks List 2025

The technology industry is rapidly evolving, and digital transformations are reshaping businesses worldwide. Major IT giants often grab the spotlight, but a group of midcap IT companies quietly prosper, and due to their expertise in niche technologies, they hold the potential to become tomorrow’s leaders in the IT sector. These companies may not be in the limelight yet, but they are making consistent efforts to deliver innovative solutions in fields such as AI, cloud services and automation.

But here’s the big question: are midcap IT stocks worth the risk? In this blog, we will try to answer this question and discover some of the top midcap IT companies in India. Moreover, we will discuss the benefits and the risks involved while investing in them.

What are Midcap Stocks?

Midcap stocks represent the shares of companies in India that lie between large-cap and small-cap companies based on market capitalization, which is the total market value of companies’ outstanding shares. In the Indian stock market, stocks are categorized by market capitalization, and midcap stocks are ranked from 101 to 250 according to SEBI’s classification.

The SEBI frequently updates company rankings by market capitalization. The top hundred companies are large-cap stocks. Midcap stocks generally offer more growth potential than large-cap stocks while being less risky than small-cap stocks.

6 Best Midcap It Stocks List

The list of Midcap It stock companies is given below:

1. Coforge Ltd.
2. KPIT Technologies Ltd.
3. Mphasis Ltd.
4. Persistent Systems Ltd.
5. Tata Elexi Ltd.
6. Tata Technologies Ltd.

Market Information of Midcap IT Stocks

Company	Current Market Price (₹)	Market Capitalization (₹ Crores)	52-Week High (₹)	52-Week Low (₹)
Coforge Ltd.	9,653	64,537	9,666	4,287
KPIT Technologies Ltd.	1,509	41,368	1,929	1,283
Mphasis Ltd.	3,114	59,021	3,240	2,180
Persistent Systems Ltd.	6,705	1,04,492	6,705	3,232
Tata Elexi Ltd.	7,246	45,130	9,083	6,285
Tata Technologies Ltd.	913	37,029	1,222	902

Overview of the Midcap IT Stocks

An overview of the top midcap IT stocks in India are:

1. Coforge Ltd.

Coforge Limited (formerly known as NIIT Technologies) is a global provider of IT solutions. Its expertise lies in software development, digital transformation and IT consulting. It was established in 1981 as a subsidiary of the NIIT Group, an IT education and training organization. In 2020, the company changed its name to Coforge Ltd.

The company develops IT solutions for banking and financial services, travel and hospitality, insurance, healthcare, media, and digital transformation. Over the years, it has adopted the latest technologies to enhance its cloud computing, digital and industry-specific expertise. The company is based in Noida, India, and has offices and operations globally.

Coforge aims to improve customer and employee experiences, and its services include application development and maintenance, cloud and infrastructure management, digital integration, data and analytics, Robotic Process Automation (RPA) and AI.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
49.38%	71.11%	495.83%

2. KPIT Technologies Ltd.

KPIT Technologies Ltd. is a leading global automotive engineering and software solutions provider. It focuses on developing advanced solutions for the automobile industry, helping OEMs and tier-1 suppliers innovate in autonomous driving, electric mobility and connected vehicles.

The company was founded in 1990 by Ravi Pandit and Kishore Patil in Pune, India. It was initially founded as a consulting firm offering IT and business solutions for enterprises. The company spun off its IT business to focus on automotive engineering. In 2018, it demerged its IT services into Birlasoft, allowing KPIT to concentrate entirely on automotive engineering.

KPIT is dedicated to meeting the changing needs of the automotive industry. Its main focus areas involve,

1. Developing software for electric and hybrid vehicles, including battery management, powertrain controls and EV simulation platforms.
2. Advanced driver assistance systems (ADAS) and autonomous driving solutions that use AI, machine learning, and sensor technologies.
3. Creating connectivity platforms for in-vehicle communication, infotainment systems and vehicle-to-everything V2X communication.
4. Comprehensive solutions for vehicle diagnostics, OTA updates, and service management.

The company is headquartered in Pune, India, and operates in over 20 countries with engineering centers in Europe, North America, Asia and Japan.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-8.56%	179.72%	1,549.94%

3. Mphasis Ltd.

Mphasis Ltd is a top global provider of technology services and solutions. It specializes in cloud computing, cognitive technologies, and edge computing, helping businesses speed up their digital transformation. It was founded in 1998 by Jerry Rao and Jeroen Tas in California, USA. In 2000, the company merged with the Indian IT firm BFL Software Ltd. After the merger, the company was renamed Mphasis BFL Limited, enhancing its focus on financial services and technology.

In 2006, the company was acquired by Electronic Data Systems (EDS) to increase its scale and access to the enterprise IT market. In 2008, HP (Hewlett-Packard) acquired EDS, which included Mphasis in its portfolio. In 2016, Blackstone Group, a leading private equity firm, acquired a majority share in Mphasis.

Mphasis uses its “Front2back Transformation” framework to provide rapid digital transformation and enhance customer experiences. Its major business segment includes banking and financial services technology and digital solutions, healthcare and life sciences, logistics, supply chain, and retail, along with other emerging industries.

The company is headquartered in Bangalore, India, and operates across 90 countries, with delivery centers in important locations in the US, Europe, the UK, and Asia Pacific.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
8.44%	-6.83%	241.46%

4. Persistent Systems Ltd.

Persistent Systems Ltd. is a leading global software product engineering and digital transformation services provider. The company helps businesses use emerging technologies like cloud, AI, analytics and IoT to foster innovation and growth. It creates software ecosystems for businesses, providing comprehensive solutions from product development to IT modernization.

Persistent Systems was founded in 1990 by Anand Deshpande, a visionary entrepreneur and ex-professor. The company is headquartered in Pune, India. In the mid-2000s, the company began catering to the banking, financial services, healthcare, life sciences, and telecommunications sectors by combining industry knowledge with technical innovation. Persistent operates in more than 40 locations globally, featuring significant delivery centers across India, the US, Europe and the Asia Pacific.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
71.86%	180.16%	1,793.76%

5. Tata Elxsi Ltd.

Tata Elxsi is a well-known global company that offers design and technology services focusing on product engineering, digital transformation and system integration. It caters to various industries like automotive media, healthcare and transportation, focusing on merging design thinking with technology to provide innovative solutions.

Tata Elxsi, part of the Tata Group, excels in engineering, embedded systems and AI-driven digital solutions. Tata Elxsi was founded in 1989 to provide electronic hardware solutions and CAD systems. The company offers specialized solutions in multiple fields, like product engineering, transportation, healthcare, media and entertainment, design studio services, and system integration services.

Over the years, it has embraced digital transformation, leading to the development of intelligent ecosystems through AI and ML innovations. The company is headquartered in Bangalore, India, and operates in 30+ countries, including delivery and development centers in North America, Europe and Asia.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-22.66%	24.91%	697.72%

6. Tata Technologies

Tata Technologies is a global engineering services firm and a member of the Tata Group. It offers various solutions in product engineering, digital transformation, and IT services for clients in the automotive, aerospace, industrial machinery, and heavy engineering industries. The company’s current focus is on smart manufacturing, connected engineering, cloud solutions, and sustainable product development.

The company was established in 1989 to improve technology and engineering services under the Tata Group. It currently operates in more than 25 countries with regional offices in the US, Europe, and the Asia Pacific. Tata Technologies is headquartered in Pune, India. The company has a vision to empower global businesses with innovative technology and top-notch engineering solutions.

Know the Returns:

1Y Return (%)	3Y Return (%)	5Y Return (%)
-26.48%	-25.90%	-25.90%

Benefits of Investing in Midcap IT Stocks

Investing in India’s midcap IT stocks can benefit those seeking growth with balanced risk and reward.

• High growth potential: Midcap IT companies generally focus on niche areas like cloud computing, cybersecurity, AI, machine learning and IT consulting. Their revenue can grow faster than large-cap IT companies, which may have limited growth potential.
• Cost efficient: Midcap IT stocks usually have a lower price-to-earnings (P/E) ratio, than large-cap stocks, making them appealing investment options.
• High Demand: The Indian IT sector thrives due to a growing global demand for digital transformation, cloud migration and enterprise software development.
• Global client base: These firms fulfill the needs of global markets, offering services to clients in the US, Europe and Asia Pacific. The international exposure reduces dependence on the domestic market and creates diverse revenue streams for the companies.
• Potential for long-term multi-bagger gains: Midcap IT stocks could grow into large-cap companies in the future, offering significant returns to early investors as some of these companies exhibit strong leadership, innovation, and consistent performance.
• Resilience and adaptability: Midcap IT firms generally have established business models and greater operational efficiency than small-cap companies, providing them with more stability during economic downturns. These firms are usually more adaptable than large-cap firms, allowing them to quickly respond to changing client needs or technology.
• Helps in Diversification: These stocks provide a great way for investors to diversify their portfolios by combining the stability of large-cap stocks with the growth potential of small-cap stocks.

Risks of Investing in Midcap Stocks

Midcap IT stocks have great growth potential but also carry inherent risks. Some of the risks are mentioned below.

• Market volatility: Midcap stocks tend to be more volatile than large-cap stocks. During market downturns, investor sentiment often causes midcap stock prices to drop sharply because they are considered riskier. 
• Business vulnerability: Many midcap IT companies focus on niche markets and depend on a few important clients. Losing a major client base can significantly affect their revenues. Also, they may have less diversified revenue streams than larger IT firms, making them susceptible to downturns in certain regions or industries.
• Intense competition: The Indian IT sector is highly competitive, with large companies dominating because of their established client relationships, diverse portfolios and economies of scale. Midcap IT firms might find it difficult to compete with larger companies and may face pricing pressures to maintain their market share.
• Global macroeconomic risks: Many midcap IT firms earn substantial revenue from international markets, especially in the U.S and Europe. They are exposed to currency fluctuations, changes in foreign trade policies, and recession.

Conclusion

Investing in midcap IT stocks provides growth potential and investment opportunities, making them a smart choice for portfolio diversification. These companies are at the forefront of developing the latest technologies, such as AI, cloud computing, and digital transformation, which can offer substantial long-term returns. Investment in these stocks can be risky due to volatility, limited financial resources, and specific challenges in the sector. Investors should carefully analyze the fundamental growth potential and market conditions of midcap IT companies before investing. Midcap IT stocks can be a good investment for those willing to accept moderate risk and a long-term investment horizon as long as the choices are based on careful research and clever decision-making. Investors can benefit from this segment by staying informed and adopting a balanced approach to mitigate risks. It is advised to consult a financial advisor before investing.

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