Investment Banks Earn $1.3 Billion in Fees Amid Strong IPOs and M&A Deals

In 2025, investment banking activity in India reached significant levels, with total fees touching $1.3 billion. A surge in IPOs and mergers positioned foreign banks at the top of the fee-earning chart, overshadowing domestic players. 

Record Fee Pool Led by Foreign Firms Like Jefferies and Morgan Stanley 

India’s investment banks witnessed an increase in business in 2025, mostly driven by heightened IPO activity and large M&A transactions.  

Jefferies topped the earning chart with $98.9 million in fees, followed by Morgan Stanley at $85 million and JP Morgan at $81 million. These figures marked a notable rise from their 2024 earnings, making foreign banks the primary beneficiaries of the busy deal environment. 

Jefferies improved its position substantially, having ranked 26th in 2021 with $12 million in earnings. This increase highlights the shift in transaction value and volume along with participation by global entities in India’s financial markets. 

Equity Capital Markets Dominate Earnings with $656 Million 

Of the $1.3 billion total fees, equity capital markets (ECM) contributed $656 million, aided by a flurry of IPOs and block deals. M&A advisory fees stood at $396 million and fees from debt capital markets reached $246 million. ECM remained ahead for the second year in a row, with larger public offerings driving the fee uptick. 

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Domestic Participation and League Table Shifts 

Foreign banks dominated 2025’s rankings, pushing domestic banks like Kotak Mahindra and Axis to 4th and 5th positions with earnings of $78 million and $67 million, respectively. Ambit’s view suggests that a mature ECM landscape also supports confidence in larger M&A deals as firms gain access to capital. 

Citi, which earned $61 million in 2025 compared to $37 million in 2024, ranked 6th. However, some of its cross-border earnings may not be fully reflected in the India-focused data. 

Hiring and Bonus Surge Amid Booming Deal Pipeline 

To support increased deal flow, investment banks expanded their teams through 2025. Citi India expanded its investment banking staff by 23% and plans to grow further by 25%. Bonus payouts remain aligned to performance, with cycles differing between foreign banks (calendar year) and domestic ones (financial year). 

Conclusion 

The Indian investment banking sector recorded $1.3 billion in earnings for 2025, mainly from ECM contributions. Foreign banks led the fee charts, driven by big-ticket participation, while domestic banks followed closely, showing strong performance in a competitive market environment. 

Disclaimer:This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

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