The December 2025 quarter earnings season has revealed a nuanced picture across Indian equities, with 1712 companies reporting results. While the overall proportion of positive earnings surprises has improved marginally to 46.0%, mid-cap stocks continue to outperform their large- and small-cap counterparts, driving aggregate profit growth amid a challenging macroeconomic backdrop.

Shradha AI Technologies Ltd., a micro-cap software consulting firm with a market capitalisation of ₹187.00 crores, reported a consolidated net profit of ₹2.69 crores for Q2 FY26, marking an 18.48% sequential decline from ₹3.30 crores in Q1 FY26, though showing modest year-on-year growth of 3.86%. The company's shares have struggled significantly, declining 38.42% over the past year and currently trading at ₹30.70, down 40.96% from their 52-week high of ₹52.00.

VL E-Governance & IT Solutions Ltd., a systems integrator and e-governance service provider, reported deeply troubling third-quarter results for FY2026, with the company sliding into losses as revenue collapsed by 70.55% year-on-year. The micro-cap company, with a market capitalisation of ₹152.00 crores, posted a net loss of ₹0.71 crores in Q3 FY26 compared to a profit of ₹0.94 crores in the same quarter last year, marking a complete reversal in profitability.

MRP Agro Ltd., a micro-cap food grains and commodities trading company with a market capitalisation of ₹103.00 crores, reported a concerning third quarter for FY2026, with net sales plummeting 41.69% quarter-on-quarter to ₹14.14 crores. Net profit declined 19.79% sequentially to ₹1.54 crores, raising questions about the sustainability of the company's recent growth trajectory. The stock, currently trading at ₹93.00, has underperformed significantly over the past year, down 35.42% whilst the Sensex gained 7.07%.

TARC Ltd., the Delhi-NCR focused real estate developer, reported a consolidated net loss of ₹21.03 crores for Q3 FY26, marking a 33.44% sequential deterioration from the ₹15.77 crores loss posted in Q2 FY26. Whilst revenue surged an impressive 458.66% quarter-on-quarter to ₹38.38 crores, the company's operational challenges remain deeply entrenched, with negative operating margins of 47.45% excluding other income highlighting fundamental profitability concerns. The stock, trading at ₹147.95 with a market capitalisation of ₹4,543 crores, has declined 5.79% following the results announcement, reflecting investor unease about the company's path to sustainable profitability.

Veer Global Infraconstruction Ltd., a micro-cap realty player with a market capitalisation of ₹163.00 crores, reported a concerning performance for Q3 FY26, with net profit declining 52.17% quarter-on-quarter to ₹0.33 crores despite a 30.57% sequential revenue recovery. The stock has reacted sharply to the deteriorating financial trajectory, plunging 15.77% following the results announcement, trading at ₹91.55 and hovering dangerously close to its 52-week low of ₹91.00.

General Insurance Corporation of India Ltd. (GIC Re), India's sole domestic reinsurer, reported a consolidated net profit of ₹1,725.66 crores for Q3 FY26 (Oct-Dec'25), marking a sharp 39.95% decline sequentially from ₹2,873.54 crores in Q2 FY26. On a year-on-year basis, profit growth remained modest at 2.92% compared to ₹1,676.63 crores in Q3 FY25. The muted quarterly performance comes despite net sales advancing 12.97% YoY to ₹12,588.62 crores, highlighting profitability pressures from volatile other income and margin compression.

Sikko Industries Ltd., a micro-cap fertiliser manufacturer with a market capitalisation of ₹186.00 crores, reported net profit of ₹2.08 crores for Q3 FY26 ended December 2025, representing a 60.00% year-on-year surge but a concerning 27.02% sequential decline from the previous quarter. The stock, trading at ₹4.22 as of February 6, 2026, has delivered extraordinary returns of 754.25% over the past year, though it declined 0.71% in the most recent trading session following the results announcement.

Mahanagar Gas Ltd., Mumbai's sole authorised city gas distribution company, reported a consolidated net profit of ₹201.15 crores for Q3 FY26, marking a sequential improvement of 5.11% from ₹191.37 crores in Q2 FY26, but representing a year-on-year decline of 9.08% from ₹221.24 crores in Q3 FY25. The ₹10,774-crore market capitalisation company's stock surged 7.66% following the results announcement, reflecting investor relief after a challenging period that saw the stock down 14.08% over the past year.

Bella Casa Fashion & Retail Ltd., a Jaipur-based garment and apparel manufacturer, reported a challenging Q3 FY26 performance marked by sequential revenue contraction and profitability pressures. Net profit for the quarter stood at ₹4.45 crores, declining 30.58% quarter-on-quarter from ₹6.41 crores in Q2 FY26, though improving 26.78% year-on-year from ₹3.51 crores in Q3 FY25. The micro-cap company, with a market capitalisation of ₹428 crores, witnessed its shares trading at ₹317.10 as of February 06, 2026, reflecting ongoing investor concerns about near-term momentum.

Madhucon Projects Ltd., a Telangana-based infrastructure construction company, reported a consolidated net loss of ₹106.64 crores for Q3 FY26 (October-December 2025), marking a deterioration from the ₹120.74 crores loss in the previous quarter. The micro-cap company, with a market capitalisation of just ₹39.00 crores, continues to face severe operational headwinds despite a 25.03% year-on-year revenue increase to ₹139.33 crores. The stock, trading at ₹5.02, has plunged 35.39% over the past year and remains deeply entrenched in bearish technical territory, reflecting investor concerns about the company's persistent inability to achieve profitability.

L G Balakrishnan & Bros Ltd., a prominent auto components manufacturer with a market capitalisation of ₹5,884.00 crores, reported a consolidated net profit of ₹88.43 crores for Q3 FY26, marking a sequential decline of 5.54% from the previous quarter's ₹93.62 crores, though maintaining a healthy year-on-year growth of 17.44%. The Coimbatore-based chain and sprocket specialist saw its stock trading at ₹1,875.00 as of February 6, 2026, reflecting investor caution following the results announcement.

Balkrishna Paper Mills Ltd., a micro-cap paper manufacturer catering primarily to the packaging industry, reported a net loss of ₹1.89 crores for Q3 FY26, marking an 80.00% deterioration from the previous quarter. The company's shares have declined 24.65% over the past three months, reflecting investor concerns about the persistent operational challenges and negative profitability metrics that continue to plague the Mumbai-based enterprise.

Archit Organosys Ltd., a micro-cap commodity chemicals manufacturer, has delivered a remarkable turnaround in Q3 FY26, swinging from a loss to profitability with net profit surging to ₹2.43 crores. However, the stock remains under pressure, trading 19.36% below its 52-week high of ₹51.45, as investors grapple with persistent margin erosion and weak return ratios that continue to plague the ₹82-crore market capitalisation company.

SEPC Limited, formerly Shriram EPC Limited, reported a robust revenue performance in Q3 FY26 (October-December 2025), with net sales surging 156.29% year-on-year to ₹340.97 crores, marking a significant acceleration from the previous quarter's 38.85% growth. Net profit jumped 236.94% YoY to ₹14.96 crores, though this impressive headline figure conceals deeper operational challenges that warrant investor scrutiny.

Star Delta Transformers Ltd., a micro-cap manufacturer of distribution and power transformers, reported mixed Q3 FY26 results that highlighted a troubling disconnect between top-line momentum and bottom-line delivery. Whilst net sales surged 61.03% year-on-year to ₹52.77 crores—marking the highest quarterly revenue in the company's recent history—net profit declined 48.11% quarter-on-quarter to ₹2.06 crores, primarily due to an unusually elevated tax rate of 41.03%. The stock, trading at ₹506.00 as of February 6, 2026, has underperformed significantly, declining 32.80% over the past year against the Sensex's 7.07% gain, reflecting investor concerns about profitability consistency and operational execution.

HBL Engineering Ltd., the Hyderabad-based battery and power systems manufacturer, delivered an exceptional second quarter performance for FY2026, with consolidated net profit surging 170.31% quarter-on-quarter to ₹387.27 crores. The stellar results, driven by a massive 103.22% sequential revenue jump to ₹1,222.90 crores, propelled the stock up 0.91% to ₹785.80 on February 6, 2026, though it remains 29.96% below its 52-week high of ₹1,121.95.

Glance Finance Ltd., a Mumbai-based non-banking financial company, reported net profit of ₹0.07 crores in Q2 FY26 (Jul-Sep'25), marking a sharp decline of 65.00% quarter-on-quarter and 92.86% year-on-year. The micro-cap NBFC, with a market capitalisation of ₹43.00 crores, continues to face significant operational challenges reflected in highly volatile quarterly performance and anaemic profitability metrics.

SMS Pharmaceuticals Ltd., a Hyderabad-based active pharmaceutical ingredient (API) manufacturer, reported a consolidated net profit of ₹23.47 crores for Q3 FY26 (October-December 2025), marking a robust 28.67% year-on-year growth but a 7.27% sequential decline from the previous quarter. The company's stock, trading at ₹315.50 with a market capitalisation of ₹3,034 crores, has delivered impressive long-term returns of 139.65% over two years, yet faces valuation headwinds with a price-to-earnings ratio of 35x—significantly above the industry average of 32x.