3 Top Semiconductor Stocks to Add to Your 2026 Watchlist

The Indian semiconductor ecosystem is gaining momentum, even though the country is still working on its semiconductor wafer fabrication capabilities. By 2030, the Indian semiconductor market is expected to have grown from US$ 38 billion (bn) in 2023 to US$ 100-110 bn.

A few businesses will profit from increased demand. Let's examine rapidly expanding semiconductor stocks that you should add to your watchlist. Companies that are diversified are included in the list.

It's important to note, when we say top, we have included companies in terms of high market capitalisation from the space, with strong plans in the semiconductor space. The same have been short-listed using Equitymaster screener.

#1 CG Power and Industrial Solutions

First on our list is CG Power and Industrial Solutions.

Industrial motors, drives, transformers, switchgear, traction motors for Indian Railways, and consumer appliances like fans and water heaters are all part of CG Power and Industrial Solutions broad range of products.

By establishing a semiconductor manufacturing facility, CG Power and Industrial Solutions has made a calculated move into the semiconductor sector.

In Sanand, Gujarat, the company's subsidiary, CG Semi, launched the country's first Outsourced Semiconductor Assembly and Test (OSAT) facility.

This facility is a major step towards India becoming self-sufficient in semiconductor manufacturing and is a part of a larger investment of Rs 76 billion (bn).

This OSAT facility will provide comprehensive solutions that include chip assembly, packaging, and testing, vital steps in the semiconductor supply chain.

The project is backed by strong strategic partnerships with global leaders Renesas Electronics (Japan) and Stars Microelectronics (Thailand),

Coming to financials in Q2 FY26 CG Power reported consolidated net sales of Rs 29,228 m against Rs 24,127 m in the corresponding period of last year. Net profits for Q2 FY26 was placed at Rs 2,844 m as against Rs 2,196 m YoY.

The company has reported a 3-year CAGR sales growth of 21.8% and 3-year net profit CAGR growth of 15.6%.

How Shares of CG Power have Performed

In the past five days, CG Power shares have fallen to Rs 732.6 from Rs 739. In the last one month, the share price has dropped about 2%. In the last one year the shares have remained flat.

The stock touched its 52-week high of Rs 811.35 on 9 December 2024 and its 52-week low of Rs 518.35 on 7 April 2025.

To know more check CG Power fact sheet and latest quarterly results.

#2 Bharat Electronics

Second on our list is Bharat Electronics (BEL).

As a leading defence electronics manufacturer, BEL creates, develops, and produces cutting-edge electronic systems and products for the Indian Air Force, Navy, and Army.

Bharat Electronics and Tata Electronics have both made strategic moves to enter the semiconductor space in India, aligning with the country's goal of developing a robust indigenous semiconductor ecosystem.

BEL has signed a Memorandum of Understanding (MoU) with Tata Electronics to advance India's semiconductor ambitions together. This partnership aims to leverage the strengths of both companies to develop semiconductor technologies and capabilities domestically, including advanced chip packaging and assembly.

As part of the agreement, Tata Electronics and BEL will explore collaboration opportunities to identify semiconductor fabrication (Fab), outsourced semiconductor assembly and test, and design services solutions from Tata Electronics based on the current and future requirements of BEL.

This will include microcontrollers (MCUs), systems-on-chip (SoCs), Monolithic Microwave Integrated Circuits (MMICs), and other processors.

Both companies will also endeavour to develop optimum manufacturing solutions for BEL's products through knowledge sharing, best practices, and other resources.

Coming to the financials of the company, BEL reported revenues of Rs 57,921 m for Q2 FY26, which was better than Rs 46,049 m YoY.

Net profits for Q2 FY26 came in at Rs 12,784 m from Rs 10,839 m in the corresponding period of last year. The company has reported a 3-year CAGR sales growth of 15.6% and 3-year net profit CAGR growth of 31%.

How Shares of BEL have Performed

In the past five days, shares of BEL have moved slightly higher to Rs 407 from Rs 405.

In the last one month, the share price has moved marginally lower from Rs 413. In the last one year, the shares have gained 33%.

The stock touched its 52-week high of Rs 435.95 on 1 July 2025 and its 52-week low of Rs 240.15 on 19 February 2025.

To know more check BEL fact sheet and latest quarterly results.

#3 Kaynes Technology India

Third on our list is Kaynes Technology India.

The company is a leading integrated electronics manufacturing company in India, specialising in end-to-end and IoT solutions-enabled electronics manufacturing.

Kaynes Technology India has made an entry into the semiconductor sector through its wholly owned subsidiary, Kaynes Semicon Pvt Ltd.

The company is setting up a semiconductor unit in Sanand, Gujarat, with an investment of Rs 33 bn. This unit is planned to have a production capacity of around six million chips per day.

This Rs 33 bn investment solidifies Kaynes as a key player in India's semiconductor ecosystem, particularly in advanced packaging and testing services, crucial for building a local semiconductor supply chain.

On the financial front, Kaynes Technology India reported consolidated net sales of Rs 9,062 m for Q2 FY26, which was way better than Rs 5,721 m YoY.

Net profits for Q2 FY26 came in at Rs 1,214 m, which more than doubled from Rs 602 m in the corresponding period of last year. The company has reported a 3-year CAGR sales growth of 56.8% and 3-year net profit CAGR growth of 91.7%.

How Shares of Kaynes Technology India have Performed

In the past five days, Kaynes Technology India shares have moved lower to Rs 6,395 from Rs 6,894.

In the last one month, the share price is down 15%. In the last one year, the shares have gained 12%.

The stock touched its 52-week high of Rs 7,824.95 on 1 January 2025 and its 52-week low of Rs 3,835 on 11 February 2025.

To know more check the Kaynes Technology India fact sheet and quarterly results.

Should You Consider Semiconductor Stocks?

Top Semiconductor stocks in India represent a compelling but evolving opportunity tied closely to the nation's industrial policy push and global technology trends.

Indian semiconductor companies offer growth potential aligned with the nation's strategic ambitions but comes with risks including technological, regulatory etc. Given that some of these stocks have moved higher due diligence and risk management maybe needed.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy Investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...