Quarterly Earnings Overview and Trends

As of 20 January 2026, a total of 203 companies have declared their results for the December 2025 quarter. The proportion of companies reporting positive earnings growth has risen to 54.0%, marking a notable improvement compared to the preceding three quarters, which saw positive results at 42.0% in September 2025, 40.0% in June 2025, and 44.0% in March 2025. This upward trend suggests a gradual recovery in corporate profitability after a period of subdued performance.

However, this improvement is not uniform across market capitalisation segments. Large-cap companies have reported a relatively modest 35.0% positive result rate, indicating ongoing challenges among the market’s heavyweight constituents. In contrast, mid-cap stocks have delivered a robust 66.0% positive result ratio, while small caps have also outperformed large caps with 56.0% positive results. This divergence highlights a rotation of earnings strength towards mid and small-cap segments, which may attract investor interest seeking growth opportunities beyond the blue chips.

Sectoral and Stock-Specific Highlights

Among large caps, Hindustan Zinc, operating in the Non-Ferrous Metals sector, emerged as a standout performer. The company’s results reflected resilience amid commodity price fluctuations, supported by operational efficiencies and steady demand. Its performance underscores the selective strength within the metals space despite global headwinds.

Mid-cap stocks have been led by Bank of Maharashtra, a public sector bank that reported encouraging earnings growth driven by improved asset quality and higher net interest margins. The bank’s results reflect a stabilising credit environment and effective cost management, which have bolstered profitability in a challenging banking sector landscape.

Small-cap companies have also delivered notable performances, with Indo Thai Securities in the Capital Markets sector topping the list. Alongside Indo Thai Securities, Poonawalla Finance (NBFC sector) and Waaree Renewable (Power sector) have demonstrated strong earnings growth, signalling robust demand and operational execution in their respective industries. These companies’ results highlight the potential for high-growth opportunities within smaller market segments.

In-Depth Analysis of Aurum Proptech Ltd’s Quarterly Performance

Aurum Proptech Ltd, a small-cap player in the Computers - Software & Consulting industry, has reported a markedly improved financial performance for the December 2025 quarter. The company’s MarketsMOJO score has risen from 9 to 17 over the past three months, reflecting a shift from a sideways to a mildly bullish technical stance as of 16 January 2026, with the stock trading at Rs 194.40.

Key financial metrics for Aurum Proptech reveal a strong quarter-on-quarter growth trajectory. Net sales surged by 60.6% to Rs 114.82 crores, reaching the highest quarterly sales figure in recent history. Operating profit before depreciation and interest (PBDIT) also hit a record Rs 28.04 crores, while profit after tax (PAT) grew an impressive 137.5% to Rs 2.74 crores, the highest in the last four quarters. Earnings per share (EPS) correspondingly increased to Rs 0.43.

Additionally, Aurum Proptech’s operating profit to interest ratio improved to 3.50 times, indicating enhanced operational efficiency and reduced financial risk. The company’s debt-equity ratio at half-year stands at a conservative 0.58 times, the lowest in recent periods, signalling prudent balance sheet management. Despite a negative profit before tax less other income (PBT less OI) of Rs -7.69 crores, the overall earnings quality and growth momentum remain positive.

Sectoral Patterns and Market Implications

The earnings season has underscored a clear sectoral bifurcation. Capital markets and NBFC sectors within the small-cap universe have shown robust earnings growth, driven by increased market activity and credit demand. Power sector companies like Waaree Renewable have benefited from rising energy consumption and favourable policy support, contributing to their strong quarterly results.

Conversely, large-cap companies, particularly in traditional sectors, continue to face margin pressures and subdued demand, which has constrained their earnings growth. The banking sector’s mixed results, with public sector banks like Bank of Maharashtra outperforming, reflect ongoing credit cycle improvements but also caution due to asset quality concerns.

Upcoming Earnings to Watch

Investors should keep an eye on the forthcoming results from key companies such as Eternal Ltd, Dr Reddys Laboratories Ltd, and KEI Industries Ltd, all scheduled to announce on 21 January 2026. These companies operate in diverse sectors including pharmaceuticals and industrial manufacturing, and their earnings will provide further clarity on sectoral trends and market sentiment heading into the new calendar year.

Aggregate Profit Growth and Market Outlook

While the aggregate profit growth for the December quarter is moderate, the improving trend in positive results and the strong showing from mid and small caps suggest a gradual earnings recovery. This may encourage a rotation of funds towards mid-cap and select small-cap stocks, which are demonstrating superior earnings momentum and operational resilience.

Market participants should remain cautious given the uneven performance across sectors and market caps, but the current earnings season offers valuable insights into emerging winners and sectors poised for growth. The evolving landscape emphasises the importance of selective stock picking and monitoring upcoming results for confirmation of sustained earnings improvement.

Conclusion

The December 2025 quarterly earnings season has revealed a market in transition, with mid-cap and small-cap companies leading the charge in positive earnings surprises. Large caps continue to face headwinds, but pockets of strength in metals, banking, and capital markets provide optimism. Investors would do well to focus on companies demonstrating consistent earnings growth, operational efficiency, and strong balance sheets as the market navigates the evolving economic environment.

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