Jefferies Top Picks: Bharti Airtel To Kaynes Tech To Lead Revenue Surge In Q3
Stocks in autos, cement, telecom, and oil & gas are set to dominate the December 2025 earnings season, as Jefferies India Strategy head Mahesh Nandurkar highlights a sharp revival in revenue momentum across corporate India.
Auto Stocks To Drive Growth
Auto stocks are among the key beneficiaries, supported by a GST rate cut–led demand boost in discretionary consumption. Jefferies expects auto OEMs to report a robust quarter, with Ebitda growth of over 20% across two-wheeler and four-wheeler manufacturers, driven by nearly 19% topline growth. Auto sector in India is expected to see significant growth in the coming quarter.
Cement, Telecom, And Oil Stocks To Sustain Earnings Growth
Cement, telecom, and oil stocks are expected to sustain earnings growth of 30% or more. Cement companies are likely to post around 30% year-on-year Ebitda growth, aided by stronger industry volume growth, steady costs, and improved pricing. Cement industry in India is expected to see significant growth in the coming quarter.
Telecom Major Bharti Airtel To Continue Healthy Growth
Telecom major Bharti Airtel is expected to continue delivering healthy Ebitda growth of around 23%. Bharti Airtel share price is expected to see significant growth in the coming quarter.
Domestic-Facing Companies To Lead Operational Performance
Domestic-facing companies, excluding financials, are set to lead operational performance. Jefferies estimates their Ebitda growth at about 16% year-on-year, improving nearly 4 percentage points sequentially, backed by a 17% year-on-year rise in revenues—the strongest in 11 quarters. Domestic companies in India are expected to see significant growth in the coming quarter.
Margin Trends Remain Mixed
Margin trends, however, remain mixed. Ebitda margins for domestic companies are forecast to decline by around 0.5 percentage points quarter-on-quarter to a 12-quarter low. Margin trends in India are expected to see significant changes in the coming quarter.
Electronics Manufacturing Services Players To Post Strong Growth
Electronics manufacturing services players such as Dixon, Syrma, and Kaynes are expected to post Ebitda growth of over 25% on strong topline momentum. Electronics manufacturing services in India are expected to see significant growth in the coming quarter.
Bank Stocks To Post Softer Quarter
Bank stocks are likely to post a softer quarter, with profits rising only about 3% year-on-year, though sequential improvement is expected as net interest margin pressures ease and credit costs normalize. Bank stocks in India are expected to see significant changes in the coming quarter.
IT Stocks To See Moderate Growth
IT stocks may see revenue growth moderate to about 1.2% quarter-on-quarter in constant currency, with earnings growth of around 8% year-on-year. IT stocks in India are expected to see significant growth in the coming quarter.
FMCG Staples To Deliver Modest Profit Growth
FMCG staples are expected to deliver modest profit growth of about 6%. FMCG staples in India are expected to see significant growth in the coming quarter.
Jefferies Cautions Investors To Watch For Labour Cost-Related One-Offs
Jefferies also cautions investors to watch for labour cost–related one-offs this quarter, as companies may create provisions for higher gratuity and leave liabilities under the new labour codes. Labour cost in India is expected to see significant changes in the coming quarter.