Quarterly Results Overview and Trends

As of 1 February 2026, a total of 960 companies have declared their results for the December 2025 quarter. The proportion of companies reporting positive earnings has risen to 49.0%, marking a notable improvement compared to the preceding quarters—43.0% in September 2025, 40.0% in June 2025, and 44.0% in March 2025. This upward trend suggests a gradual recovery in corporate profitability, albeit with significant variation across market capitalisation segments.

Large-cap companies have lagged behind, with only 37.0% posting positive results, reflecting ongoing challenges in sectors dominated by these firms. In contrast, mid-cap companies have led the charge with 54.0% positive results, while small caps have maintained a steady 50.0% positivity rate. This divergence underscores the resilience and growth potential of mid-sized enterprises in the current economic environment.

Sectoral and Market Cap Leaders

Among large caps, TVS Motor Company in the automobile sector has emerged as a standout performer, delivering results that surpassed market expectations. The company’s ability to navigate supply chain constraints and maintain healthy demand has contributed to its strong showing.

In the mid-cap space, GE Vernova T&D, operating in heavy electrical equipment, has impressed investors with robust order inflows and margin expansion. Its performance highlights the ongoing infrastructure and power sector revival, which is supporting mid-cap earnings growth.

Small caps have also produced notable winners, with Cupid in the FMCG sector delivering solid revenue growth and margin improvement. The company’s focus on niche product segments and efficient cost management has underpinned its positive results.

Exceptional Performers Among Micro and Small Caps

Beyond the conventional market cap categories, micro-cap stocks have also made headlines. String Metaverse, operating in the paper, forest, and jute products sector, has recorded top results, reflecting niche market demand and operational efficiencies. Similarly, Indo Thai Securities in the capital markets sector has demonstrated strong earnings momentum, benefiting from increased market activity and trading volumes.

Spotlight on Recent Declarations: Ind-Swift Laboratories Ltd.

In the last 24 hours, 74 companies declared their results, with Ind-Swift Laboratories Ltd. standing out in the pharmaceuticals and biotechnology sector. The company reported a very positive financial performance for the December 2025 quarter, with its MarketsMOJO score improving significantly from 9 to 24 over the past three months.

Key financial highlights include net sales of ₹303.49 crores, reflecting a remarkable growth of 115.61% year-on-year. Profit after tax (PAT) surged by 371.8% to ₹12.94 crores, while PBDIT reached a record ₹4.18 crores. Operating profit as a percentage of net sales also hit a high of 2.77%, signalling enhanced operational efficiency. Despite a sideways stock price movement from a mildly bearish stance on 30 January 2026 at ₹113.34, the underlying financials suggest a strong turnaround.

Upcoming Earnings to Watch

Market participants will closely monitor the results of several key companies scheduled to announce on 2 February 2026. These include Hyundai Motor India Ltd, Bajaj Housing Finance Ltd, and Indus Towers Ltd. Their performance will provide further insight into the health of the automobile, housing finance, and telecom infrastructure sectors respectively.

Aggregate Profit Growth and Market Implications

While the overall proportion of positive results has improved, aggregate profit growth remains uneven across sectors and market caps. The mid-cap segment’s outperformance suggests that investors may find better opportunities in companies with more agile business models and growth-oriented strategies. Conversely, the subdued large-cap results reflect ongoing macroeconomic headwinds and sector-specific challenges, particularly in capital-intensive industries.

Sectoral patterns indicate that infrastructure-related companies, including heavy electrical equipment and capital markets, are benefiting from increased government spending and market activity. FMCG and pharmaceuticals continue to show resilience, supported by steady demand and innovation.

Investors should weigh these trends carefully, balancing exposure between stable large caps and dynamic mid and small caps to optimise portfolio returns amid the evolving economic landscape.

Conclusion: Navigating a Mixed Earnings Landscape

The December 2025 earnings season paints a picture of cautious optimism. With nearly half of the companies reporting positive results and mid caps leading the gains, there is evidence of selective strength in the market. However, the relatively modest large-cap performance and sectoral disparities underscore the need for discerning stock selection.

As the market awaits upcoming results from marquee companies, investors would do well to focus on quality earnings growth, operational efficiency, and sectoral tailwinds. The evolving earnings narrative suggests that while challenges persist, opportunities abound for those who analyse fundamentals and market dynamics closely.

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