India’s investment banking fees hit $1.3 billion in 2025, Jefferies tops league table

India’s investment banking (IB) sector is on a record run, with fees surging to $1.3 billion in 2025, driven by a boom in initial public offerings (IPOs) and mergers and acquisitions (M&A), according to LSEG data.

American firm Jefferies led the league table with $98.9 million in fees, climbing from fourth place in 2024 when it earned $70 million. The rise marks a sharp five-year ascent: in 2021, Jefferies ranked 26th, collecting just $12 million in fees.

Morgan Stanley followed with $85 million, while JP Morgan secured third place with $81 million. Both banks moved up significantly from their 2024 positions, when they ranked seventh and 13th with $43 million and $32 million, respectively.


Equity capital markets (ECM) contributed the largest share of fees at $656 million, followed by M&A advisory at $396 million and debt capital markets (excluding loan syndication) at $246 million. The ECM segment, powered by a strong IPO wave and block trades, has dominated the fee pool for the past two years, displacing M&A advisory, which historically led earnings.

“The Indian ECM market has come of age, and in the coming years there will be intense competition between ECM and M&A fees,” The Times of India quoted Vikas Khattar, head of ECM at Ambit, as saying. “A strong ECM market instills confidence in large M&A deals by enabling acquirers to raise capital.”

Foreign banks dominated the top three spots in 2025, a sharp contrast to 2024 when domestic lenders Kotak Mahindra, ICICI, and Axis led the rankings. Large-ticket ECM deals drew increased participation from international banks, allowing them to capture a disproportionate share of fees.

Samarth Jagnani, head of ECM at Morgan Stanley India, noted on LinkedIn that the firm advised on 10 transactions exceeding $1 billion in 2025, reflecting the growing trend of foreign banks participating in high-value deals.

Kotak Mahindra and Axis ranked fourth and fifth with $78 million and $67 million, respectively. Citi jumped to sixth with $61 million, up from 10th in 2024 when it earned $37 million. “Citi is decidedly one of the top banks on revenues which may not reflect in LSEG because cross-border deal fees are recorded in the foreign country,” TOI quoted Rahul Saraf, head of IB at Citi India.

With deal momentum strong, banks are expanding teams despite differing bonus cycles—foreign bankers’ bonuses are linked to the previous calendar year, while local banks follow the April-March financial year. “We increased the IB team strength by 23% last year and would look to increase by further 25%, given the strong pipeline we have and the underlying momentum of business,” Saraf added.

(With inputs from TOI)