Bharti Airtel To Kaynes Tech: Jefferies Top Picks As It Expects 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.

For the Jefferies coverage universe excluding global commodities, revenue growth is expected to jump to an 11-quarter high of about 14% year-on-year, a trend that should anchor a similar pace of Ebitda and earnings 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. Property and real estate stocks are also in focus, as improving construction activity—helped by normalising weather conditions—supports strong sales momentum.

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.

Telecom major Bharti Airtel is expected to continue delivering healthy Ebitda growth of around 23%. Oil marketing companies such as BPCL, HPCL and IOCL are projected to report sharp year-on-year jumps in Ebitda—about 47%, 32% and 130%, respectively—on elevated marketing margins and firm refining spreads amid lower crude prices.

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. Autos and property developers are expected to see over 20% revenue growth, with a substantial sequential improvement.

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. Consumer staples may see margins contract by about 1 percentage point year-on-year, while cement margins are expected to expand by roughly 2 percentage points and capital goods margins by about 1 percentage point.

Alongside autos, cement, capital goods and telecom stocks, electronics manufacturing services players such as Dixon, Syrma and Kaynes are expected to post Ebitda growth of over 25% on strong topline momentum. L&T’s Ebitda is projected to rise 14% year-on-year on similar revenue growth.

In contrast, 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 normalise. 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, while FMCG staples are expected to deliver modest profit growth of about 6%.

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. While these could weigh temporarily on reported earnings, the broader picture remains supportive for stocks leveraged to domestic demand, construction activity and discretionary consumption going into 2026.