Quarterly Earnings Trend Overview
The latest quarter marks a notable improvement in the proportion of companies reporting positive earnings growth, rising to 49.0% from 43.0% in September 2025 and 40.0% in June 2025. This upward trajectory suggests a gradual recovery in corporate profitability after a challenging first half of the fiscal year. However, the March 2025 quarter had a slightly higher positivity rate of 44.0%, indicating some volatility in earnings momentum over the past year.
Market capitalisation-wise, mid-cap companies have demonstrated the strongest earnings resilience, with 54.0% delivering positive results. Small caps follow closely at 50.0%, while large caps have struggled comparatively, with only 37.0% reporting positive earnings. This divergence highlights the ongoing rotation of investor interest towards mid and small caps, which are benefiting from niche growth opportunities and operational agility.
Sectoral and Company Highlights
Among large caps, TVS Motor Company in the automobile sector has emerged as a top performer, reflecting robust demand and improved cost efficiencies. The company’s ability to navigate supply chain constraints and maintain margin discipline has been pivotal in its strong quarterly showing.
In the mid-cap space, GE Vernova T&D
Small caps have also produced notable winners, with Cupid in the FMCG sector standing out due to strong volume growth and brand expansion. Additionally, Indo Thai Securities in capital markets has benefited from increased market activity and improved brokerage revenues. Micro caps have seen exceptional results from String Metaverse, operating in paper, forest, and jute products, which has capitalised on niche demand and cost optimisation to post top-line and profit growth. Turnaround taking shape! This Small Cap from NBFC sector just hit profitability with strong business fundamentals showing up. Catch it before the major breakout happens! Spotlight on Pharmaceuticals: Ind-Swift Laboratories’ Strong Quarter Among the 74 companies that declared results in the last 24 hours, Ind-Swift Laboratories Ltd has delivered a very positive financial performance for the December 2025 quarter. The pharmaceutical and biotechnology firm reported 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 quarterly high of ₹4.18 crores. Operating profit to net sales ratio also improved to 2.77%, the highest recorded in recent quarters. Ind-Swift’s financial score improved significantly from 9 to 24 over the past three months, signalling enhanced operational efficiency and market traction. Despite the stock moving sideways from a mildly bearish stance at ₹113.34 on 30 January 2026, the underlying fundamentals suggest a positive outlook for the company’s medium-term prospects. Upcoming Earnings to Watch Investors should keep an eye on the upcoming results of key companies scheduled for 2 February 2026, including Hyundai Motor India Ltd, Bajaj Housing Finance Ltd, and Indus Towers Ltd. These companies operate in sectors that have shown mixed earnings trends recently, and their quarterly performance could provide further clarity on sectoral momentum heading into the second half of the fiscal year. Aggregate Profit Growth and Market Implications The aggregate profit growth across the 960 companies that have declared results indicates a cautious but improving earnings environment. The rise in positive results from 40.0% in June 2025 to 49.0% in December 2025 suggests that corporate India is gradually overcoming headwinds such as inflationary pressures, input cost volatility, and global economic uncertainties. However, the disparity between large caps and mid/small caps highlights the uneven nature of this recovery. Large caps, often more exposed to global markets and cyclical sectors, continue to face margin pressures and subdued demand in certain segments. Conversely, mid and small caps are benefiting from domestic consumption revival, government infrastructure initiatives, and sector-specific tailwinds. For investors, this earnings season reinforces the importance of selective stock picking and sectoral diversification. Mid-cap companies with strong order books and improving cash flows remain attractive, while large caps with resilient business models and cost control measures warrant close monitoring. Sectoral Patterns and Earnings Quality The automobile sector, represented by TVS Motor Co., continues to demonstrate resilience amid supply chain normalisation and steady consumer demand. Heavy electrical equipment firms like GE Vernova T&D are capitalising on infrastructure spending, while FMCG players such as Cupid are benefiting from sustained consumer spending and brand penetration. Pharmaceuticals and biotechnology, exemplified by Ind-Swift Laboratories, are showing signs of robust growth driven by product innovation and export demand. Capital markets firms like Indo Thai Securities are gaining from increased market volatility and trading volumes, which have boosted brokerage income. Overall, earnings quality appears to be improving, with companies reporting better operating margins and cash flow generation. However, investors should remain cautious of pockets of weakness in sectors exposed to commodity price fluctuations and global demand slowdowns. Conclusion: Navigating a Mixed Earnings Landscape The December 2025 quarterly results season paints a picture of gradual recovery with pockets of strength across mid and small caps, while large caps face ongoing challenges. Earnings growth is becoming more broad-based, but investors must remain vigilant to sector-specific risks and company fundamentals. With 960 companies having reported so far, the data suggests that selective exposure to mid-cap growth stories and resilient small caps could offer better risk-adjusted returns in the near term. Meanwhile, monitoring upcoming results from marquee large caps will be crucial to gauge the sustainability of the recovery in the broader market. As the earnings season progresses, a disciplined approach focusing on quality earnings growth, margin improvement, and cash flow generation will be key to navigating the evolving market environment. Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
