Cement, telecom and autos are expected to lead the next leg of India’s earnings upswing, according to Jefferies. The brokerage expects cement earnings to rise about 34% in FY27, telecom about 25% and autos to stage a meaningful rebound from a soft FY26 base. Banks, which rarely dominate acceleration lists, are also positioned for steadier growth as pressure on margins eases. Taken together, Jefferies said this group of sectors will drive most of next year’s earnings momentum.
Jefferies on cement: Earnings acceleration seen ahead
Cement sits at the top of Jefferies’ FY27 acceleration chart. The brokerage expects about 34% earnings growth as volumes stabilise, input costs soften, and capacity utilisation improves. It said cement manufacturers have absorbed two volatile years of fuel cost swings and weather disruptions, but these adjustments leave them leaner going into FY27.
Jefferies also noted that several producers have reached more efficient cost positions after a stretch of tight margins caused by GST-related timing issues and erratic construction activity. With infrastructure spending and housing demand likely to normalise if weather remains predictable, the sector enters FY27 with a cleaner base than in earlier years.
Jefferies on telecom: One-offs behind, profit cycle cleaner
Telecom takes the second spot with a projected near-25% rise in FY27 earnings. Jefferies said the numbers look more meaningful once the large one-offs from FY25 and early FY26 roll out of comparison. Bharti Airtel booked exceptional gains of about Rs 7,300 crore in FY25. Indus Towers recorded one-off recoveries of roughly Rs 5,000 crore in FY25 and another Rs 300 crore in 1HFY26.
After removing these items, Jefferies finds the underlying profit trend far steadier. Tariff rationalisation, a more premium subscriber mix and improving receivable cycles also support FY27. For a sector that has dealt with long periods of regulatory and competitive volatility, Jefferies said the outlook finally appears less uneven.
Jefferies’ normalised view shows Airtel delivering about 74% profit growth in FY26 and 37% in FY27. For Indus Towers, normalised growth stands at 14% in FY26 and 7% in FY27. With these adjustments, the brokerage said Airtel and Indus form the backbone of next year’s telecom earnings improvement.
Jefferies on autos: Low base and operational normalisation
Autos, which struggled in FY26 due to rural demand swings and inventory corrections, are projected to deliver a cleaner rebound in FY27. Jefferies expects leading names like Maruti Suzuki and Samvardhana Motherson to post sharper growth as low comparables and smoother supply chains take hold. Maruti’s profit is estimated to rise around 18% in FY27, from roughly 8% in FY26. Motherson’s growth is projected to move from low single digits to about 30%.
According to the brokerage, GST rate shifts and uneven festival-season demand created distortions through FY26. Those distortions fade next year, resulting in a more normal FY27 run-rate.
Jefferies on banks: Margins could finally stabilise
Jefferies said net interest margins for several large lenders appear close to their floor after months of pressure from deposit repricing. Stable spreads and firm credit growth help set up a steadier year.
Kotak Mahindra Bank is a clear example. Jefferies expects Kotak’s net profit to swing from a roughly 10% decline in FY26 to about 22% growth in FY27, supported by an estimated 18-basis-point margin improvement. Axis Bank and State Bank of India also feature prominently in the firm’s FY27 acceleration set.
Provisioning burdens have eased across the system, Jefferies said, giving banks a cleaner runway into next year. The main risk is deposit behaviour. If deposit costs remain sticky, the margin relief could narrow.
Jefferies on sharp earnings swings: Movement most visible
Among individual names, InterGlobe Aviation shows one of the largest swings. Jefferies expects IndiGo’s earnings to move from a roughly 9% drop in FY26 to about 42% growth in FY27. This shift is linked to international route expansion, steadier fuel prices and the absence of the operational turbulence seen at the start of FY26.
Jefferies also pointed out that several FY25 one-offs in pharma and energy could skew year-on-year readings. Because of this, the firm advises investors to interpret FY27 estimates alongside FY25 distortions rather than as pure structural trends.
Jefferies on key earnings risks
The brokerage highlighted several risks that could affect the sector-led improvement. Weather swings can hit construction and power demand. Rising input costs could pressure margins in energy-linked sectors. Banks remain tied to the Reserve Bank of India’s policy sequence, especially in how deposit rates settle. One-offs from FY25, particularly in pharma and energy, may also distort how investors interpret FY27 growth.