•JP Morgan's analysis predicts growth for India's sectors, with Communication Services
•Materials sector is also expected to see around 30% growth
•The MSCI India index is projected to grow by approximately 13% in 2025 and 15% in 2026

JP Morgan's recent view on MSCI India earnings growth estimates indicates an upward trend in sectoral earnings per share (EPS) for 2025 and 2026.
The figures, made public by the financial giant, indicate that India's sectoral earnings will increase steadily, with some sectors expected to post exceptional performances in the next two years.

As per the JP Morgan chart, Communication Services will be the sector with the strongest EPS growth among all sectors. For 2025, the grey bar of this sector reaches almost 45 per cent, and the green bar for 2026 keeps this level, so it is the most promising sector in both years.

The past projection (grey diamond) in 2025 was slightly lower, reflecting a moderation, though still firm expectations. Likewise, the projection of 2026 (green diamond) has continued stable, indicating consistency in the analyst expectations.

Materials is another segment with strong growth potential. EPS is expected to increase by approximately 30 per cent in 2025. The estimates are better than those made three months ago, reflecting increasing optimism. The Materials sector, with a sector weight of 7.5 per cent in MSCI, can make a substantial contribution to overall earnings growth.

Industrials also demonstrate robust performance, with over 20 per cent EPS growth anticipated in both 2025 and 2026. Although the new 2026 forecast is marginally lower than the previous estimate, the 2025 forecast remains solid, indicated by steady green and green-diamond symbols.

The Financials and Consumer Discretionary sector comes next, with anticipated EPS growth of between 13 per cent and 18 per cent over the next two years.
Healthcare, even though it has a lower index weight of 5.7 per cent, is also likely to report EPS growth of approximately 10 per cent in both years.

However, sectors such as Utilities, Technology, and Energy are likely to experience only low single-digit growth. These sectors continue to be the laggards in the earnings estimate.

The aggregate MSCI India index is expected to expand at about 13 per cent in 2025 and 15 per cent in 2026, indicating a benign macro environment for Indian corporates.

JP Morgan's estimates indicates to watch Communication Services, Materials, and Industrials, as these categories are likely to lead India's earnings growth in 2025 and 2026.