India’s investment banking sector is witnessing an impressive surge, with fees hitting a record $1.3 billion in 2025. This growth is driven by a wave of initial public offerings (IPOs) and strong mergers and acquisitions (M&A) activity. Jefferies has emerged as the leader in this competitive environment, with its bankers expected to earn nearly $100 million. This marks a substantial rise from previous years, showcasing the dynamic growth of investment banking in the country.
Jefferies Leads the Charge
Jefferies has secured the top position in the investment banking fee rankings in India, posting earnings of $98.9 million in 2025, a significant increase from $70 million in 2024. This leap from fourth place to the top spot illustrates the firm’s rapid ascent, considering it was ranked 26th just five years prior, with only $12 million in fees. Morgan Stanley and JP Morgan followed closely in the second and third positions, earning $85 million and $81 million, respectively. This is a marked improvement from their seventh and thirteenth rankings in 2024, indicating a noteworthy shift in the competitive landscape. These rankings are essential for determining bonus payouts for bankers, typically announced by foreign banks in January after the year-end break.
Equity Capital Markets Drive Growth
The equity capital markets (ECM) have emerged as the primary driver of fee generation, contributing $656 million to the overall investment banking fees. This growth has been fueled by a thriving IPO market and robust block trades. Mergers and acquisitions advisory also generated $396 million, while debt capital markets added $246 million, excluding loan syndication. This trend reflects a shift from previous years when M&A advisory dominated the fee landscape. Vikas Khattar, head of ECM at Ambit, mentioned that the Indian ECM market has matured, leading to increased competition between ECM and M&A fees in the years ahead. A strong ECM market not only boosts confidence in significant M&A deals but also enables acquirers to raise essential capital.
Foreign Banks Dominate the Rankings
In a notable shift from 2024, foreign banks have claimed the top three spots in the investment banking fee rankings for 2025. This stands in contrast to the previous year, which saw domestic lenders like Kotak Mahindra, ICICI, and Axis leading the charge. The increase in large ECM deals has attracted greater participation from international banks, allowing them to capture a significant share of the fees. Samarth Jagnani, head of ECM at Morgan Stanley India, highlighted that the firm advised on ten transactions exceeding $1 billion in 2025, reflecting the growing involvement of foreign banks in high-value deals. Kotak Mahindra and Axis ranked fourth and fifth, earning $78 million and $67 million respectively, while Citi climbed to sixth place with $61 million, up from tenth in 2024.
Banking Sector Expansion Amid Strong Deal Momentum
As deal activity remains robust, banks are expanding their teams to harness the momentum. However, bonus cycles differ between foreign and domestic banks; foreign bankers’ bonuses are tied to the previous calendar year’s performance, while local banks follow the April-March financial year. Rahul Saraf, head of investment banking at Citi India, noted that the firm increased its investment banking team by 23% last year and plans to expand by an additional 25% due to a strong pipeline of business opportunities. This growth demonstrates optimism within the sector as banks prepare for continued success in the evolving investment landscape.
Digihunt is not a financial advisor and this is not investment advice.