JP Morgan's Bullish Forecast: India's Sectoral Earnings Poised for Growth

JP Morgan's latest projections suggest a bright future for India's sectoral earnings, forecasting strong growth for 2025 and 2026. The financial giant's data highlights a promising trend in earnings per share (EPS) across various sectors, with several poised for exceptional performance over the next two years.

The Communication Services sector is anticipated to lead the EPS growth, approaching an impressive 45% increase in 2025 and maintaining this momentum into 2026. Although there is a slight moderation in earlier forecasts, these figures indicate a robust outlook, positioning Communication Services as the most promising sector.

Other notable performers include the Materials sector, with EPS expected to surge by about 30% in 2025. This sector's upward revisions over recent months underscore growing optimism. Additionally, Industrials show strong growth potential, with EPS increases of over 20% anticipated for both years. While lower than previous estimates for 2026, the financials and consumer discretionary sectors will see EPS growth ranging between 13% and 18% during this period.

Healthcare is also set for about a 10% growth despite its smaller index weight, whereas Utilities, Technology, and Energy are projected to experience low single-digit growth, ranking as forecast laggards. The MSCI India index is expected to expand by around 13% in 2025 and 15% in 2026, underscoring a stable macroeconomic environment for Indian corporates.

JP Morgan advises attention to Communication Services, Materials, and Industrials, as these sectors are anticipated to be key drivers of India's earnings growth in the coming years.

(With inputs from agencies.)