Overall Earnings Trend and Market Sentiment

As of 1 February 2026, a total of 960 companies have declared their quarterly results for the December 2025 period. The proportion of companies reporting positive earnings has risen to 49.0%, marking a notable improvement from 43.0% in the September 2025 quarter and 40.0% in June 2025. This sequential uptick suggests a gradual stabilisation in corporate profitability after a challenging year marked by inflationary pressures and supply chain disruptions.

However, the positive result ratio remains below the 50% mark, indicating that nearly half of the companies are still struggling to meet market expectations. This uneven recovery is reflected in the divergent performances across market capitalisation segments.

Market Capitalisation Breakdown: Mid Caps Outperform

Mid-cap companies have emerged as the standout performers this quarter, with 54.0% reporting positive results. This contrasts sharply with large-cap firms, where only 37.0% of companies beat or met expectations. Small caps also showed resilience, with half of the companies delivering positive earnings.

The stronger showing by mid caps may be attributed to their greater agility in adapting to changing market conditions and benefiting from niche sectoral tailwinds. Large caps, often more exposed to global economic headwinds and regulatory challenges, have faced tougher comparatives and margin pressures.

Sectoral Highlights and Top Performers

Among large caps, TVS Motor Company in the automobile sector delivered one of the top results, reflecting robust demand recovery and improved operational efficiencies. The company’s ability to navigate raw material cost inflation while expanding market share has been a key driver of its strong quarterly performance.

In the mid-cap space, GE Vernova T&D, operating in heavy electrical equipment, stood out with impressive earnings growth. The company benefited from increased infrastructure spending and government initiatives supporting power transmission and distribution upgrades.

Small caps also showcased notable performers such as Cupid in the FMCG sector, which reported strong volume growth and margin expansion, signalling a revival in consumer demand and effective cost management.

Interestingly, the top overall results were recorded by micro-cap String Metaverse in the paper, forest, and jute products sector, highlighting pockets of strength in less-followed segments. Other small-cap leaders included Indo Thai Securities in capital markets, which benefited from increased trading volumes and improved brokerage income.

Spotlight on Recent Declarations: Ind-Swift Laboratories Ltd

Among the 74 companies that declared results in the last 24 hours, Ind-Swift Laboratories Ltd in the pharmaceuticals and biotechnology sector delivered a very positive performance. The company’s net sales for the half year ended December 2025 surged by 115.61% to ₹303.49 crores, while its quarterly profit after tax (PAT) soared by 371.8% to ₹12.94 crores.

Operating profit before depreciation, interest and taxes (PBDIT) reached a record ₹4.18 crores, with the operating profit to net sales ratio improving to 2.77%, the highest in recent quarters. This robust financial showing has lifted the company’s score from 9 to 24 over the past three months, signalling a significant turnaround in operational efficiency and profitability.

Upcoming Earnings to Watch

Market participants will closely monitor the results of key companies scheduled to report on 2 February 2026, including Hyundai Motor India Ltd, Bajaj Housing Finance Ltd, and Indus Towers Ltd. These companies represent critical sectors such as automobiles, housing finance, and telecommunications infrastructure, and their earnings will provide further clarity on sectoral momentum heading into 2026.

Profit Growth and Quality Assessment

Aggregate profit growth for the quarter has been uneven, with mid caps leading the charge. The improvement in positive result proportions from 40.0% in June 2025 to 49.0% in December 2025 reflects a gradual but cautious recovery. However, the relatively low positive result ratio among large caps at 37.0% suggests that blue-chip companies are still contending with margin pressures and subdued demand in certain segments.

Quality of earnings remains a key focus, with companies like Ind-Swift Laboratories demonstrating not only top-line growth but also margin expansion and improved operating leverage. Such performances are critical for sustaining investor confidence amid macroeconomic uncertainties.

Sectoral Patterns and Investor Implications

The automobile sector’s mixed but improving results, led by TVS Motor Co., indicate a gradual recovery in consumer discretionary spending. Heavy electrical equipment firms like GE Vernova T&D are benefiting from government infrastructure initiatives, signalling a positive outlook for capital goods segments.

FMCG companies such as Cupid are showing signs of demand revival, which bodes well for consumer staples amid inflationary pressures. Meanwhile, niche sectors like paper and capital markets are delivering standout performances, highlighting the importance of sectoral diversification in portfolios.

Investors should note the divergence in results across market caps and sectors, favouring mid-cap and select small-cap stocks with strong earnings momentum and quality metrics. Large caps may require more selective stock picking given the broader challenges they face.

Conclusion: Navigating a Mixed Earnings Landscape

The December 2025 quarterly results season underscores a market in transition, with improving earnings trends tempered by ongoing sectoral and size-based disparities. Mid-cap companies have emerged as the primary drivers of profit growth, while large caps continue to face headwinds. Select small and micro caps are also delivering impressive results, offering opportunities for discerning investors.

As the market awaits upcoming earnings from marquee names next week, the focus will remain on companies that can demonstrate sustainable profit growth, margin improvement, and resilience in a challenging macroeconomic environment. Strategic allocation towards mid caps and turnaround stories may offer the best risk-reward balance in the near term.

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