Global brokerage JP Morgan has released its latest report on India equity strategy, identifying these stocks as its top stock picks across the IT, and telecom sectors. Brokerage firm believes, these stocks are well-positioned to outperform as earnings visibility improves and operational tailwinds emerge.
Coforge
Coforge stands out as JP Morgan’s top IT recommendation, for its strong pipeline and execution-led growth. The brokerage expects 21 per cent organic constant currency revenue growth in FY26, fuelled by large deal wins such as Sabre.
Importantly, margins are expected to improve, with 14 per cent EBIT margin guidance now being achieved a year ahead of target. According to JP Morgan, operating leverage and lower ESOP-related costs will drive this improvement, making Coforge a compelling growth story in the mid-cap tech space.
Eternal (Zomato)
Eternal Ltd., which owns Zomato and Blinkit, is the brokerage’s top pick in the internet sector. The firm expects losses to narrow sharply over the coming quarters, primarily due to a slowdown in store additions by Blinkit, Instamart, and Zepto in Q1FY25.
JP Morgan flagged flatlining user growth at Zepto and falling paid ad downloads, suggesting that the competitive landscape is easing. This could allow Blinkit to hit adjusted EBITDA profitability earlier than previously forecast.
Bharti Airtel
On the telecom front, Bharti Airtel remains JP Morgan’s top overweight idea. The brokerage expects a mid-teens EBITDA CAGR over the next three years, with capex moderation likely in FY26 as rural and radio rollouts taper off.
With ongoing deleveraging and scope for increased dividends, Bharti also offers strong shareholder value potential. JP Morgan believes 5G monetisation, tariff hikes, and better execution could act as additional triggers for upside.
FY26 forecast
With its latest picks Coforge, Eternal, and Airtel JP Morgan is backing companies with improving sector dynamics. For investors looking to reposition ahead of FY26, these could be high-conviction bets worth tracking.
