India’s Internet Stocks Are in Reset Mode as Investors Await Earnings Clarity: Morgan Stanley

India’s internet sector is no longer in sprint mode. After years of easy capital, rapid expansion and headline-grabbing valuations, 2025 marked a decisive shift away from growth at all costs and toward a more sober phase of consolidation, according to a report by Morgan Stanley.

The brokerage described 2025 as a year of reset for internet stocks, shaped by weaker startup funding, heightened competition, regulatory headwinds and sustained earnings downgrades across several listed companies. For investors, the message is clear: sentiment will remain cautious until earnings visibility improves and the downgrade cycle shows signs of bottoming out.