India's Next Earnings Wave

Telecom, steel, oil & gas, travel, power, and financial services could propel the next phase of earnings growth

- NIMESH SHAH, MD & CEO, ICICI PRUDENTIAL AMC

IN INVESTING, THE relationship between company performance and shareholder returns is rarely straightforward. Earnings growth, while critical, does not always translate into stock market gains.

To understand the earnings potential, it helps to look at the journey corporate India has taken over the past decade. Today, companies are better capitalised, and governance standards stronger.

Supporting the renewed strength are powerful tailwinds. Policy continuity, rapid digital adoption, and rising consumer aspirations are converging to create a durable growth runway. Structural reforms such as GST are simplifying compliance. Infrastructure upgrades and shifts in global supply chains are adding further momentum.

Together, these shifts present opportunities and pose questions. The opportunities lie in the sectors poised to drive India's next earnings cycle. When and at what price investors choose to participate will determine how much of this growth translates into returns.

Here are a few sectors that could shape India's next earnings wave:

TELECOM
Data is the new oxygen of the economy. While tariff hikes have slowed subscriber growth, they also signal a crucial pivot towards profitability.