Quarterly Results Overview and Positive Result Trends

The latest quarter saw 46.0% of companies reporting positive results, a slight uptick from 44.0% in September 2025 and 42.0% in June 2025, though marginally below the 47.0% recorded in March 2025. This gradual improvement suggests a stabilising earnings environment amid ongoing macroeconomic challenges. The total of 3,644 results declared underscores the breadth of data available for analysis, providing a comprehensive view of corporate health across sectors and market caps.

Market Capitalisation Breakdown: Mid Caps Outperform

When segmented by market capitalisation, mid-cap companies led the pack with 52.0% reporting positive results, outperforming both large caps at 43.0% and small caps at 45.0%. This outperformance highlights the resilience and growth potential within the mid-cap space, often seen as a sweet spot for investors seeking a balance between stability and expansion. Large caps, while more established, showed a comparatively subdued positive result ratio, reflecting perhaps the impact of global economic headwinds and sector-specific pressures.

Top Performers Across Market Caps

Among large caps, Muthoot Finance stood out in the Non-Banking Financial Company (NBFC) sector, delivering robust earnings that bolstered investor confidence. In the mid-cap segment, FSN E-Commerce impressed with strong operational metrics in the E-Retail sector, signalling sustained consumer demand and digital adoption. Small caps saw Quality Power El from the Heavy Electrical Equipment sector emerge as a top performer, reflecting niche sectoral strength.

Micro-cap stocks also made headlines with Trescon in Realty and Jindal Poly Investment & Finance Company Ltd. in NBFC sectors posting exceptional results. Notably, Jindal Poly Investment & Finance Company Ltd. reported a remarkable turnaround, with net sales soaring to ₹961.80 crores, a staggering growth of 12,230.77% year-on-year. Profit before tax (excluding other income) surged to ₹839.56 crores, up 2,360.61%, while profit after tax reached ₹702.05 crores, an increase of 2,000.1%. This performance marks the highest quarterly figures in the company’s history, with an operating profit margin nearly touching 100%, underscoring operational efficiency and strong demand.

Sectoral Patterns and Earnings Drivers

The NBFC sector continues to be a focal point, with companies like Muthoot Finance and Jindal Poly Investment demonstrating strong credit demand and improving asset quality. Their stellar earnings reflect a broader recovery in financial services, supported by easing liquidity conditions and rising consumer confidence.

In the technology-driven E-Retail sector, FSN E-Commerce’s performance highlights the sustained shift towards digital consumption, with increased online penetration and festive season sales contributing to revenue growth. This sector remains a key beneficiary of evolving consumer behaviour, despite inflationary pressures.

Heavy Electrical Equipment companies such as Quality Power El have capitalised on infrastructure spending and government initiatives, translating into higher order books and improved margins. This sector’s growth trajectory is supported by rising industrial activity and renewable energy investments.

Aggregate Profit Growth and Earnings Quality

Aggregate profit growth for the quarter has been buoyed primarily by mid-cap and micro-cap stocks, which have reported outsized gains relative to their large-cap counterparts. The exceptional growth rates seen in companies like Jindal Poly Investment & Finance Company Ltd. are indicative of both operational leverage and strategic repositioning.

However, the overall earnings quality remains mixed, with some large caps facing margin pressures due to input cost inflation and global supply chain disruptions. Investors should remain cautious, balancing exposure between high-growth mid and small caps and more stable large caps with defensive characteristics.

Recent Market Activity and Upcoming Results

The last 24 hours witnessed 787 results declarations, with Jindal Poly Investment & Finance Company Ltd. continuing to dominate headlines due to its outstanding quarterly performance and bullish sentiment shift from mildly bullish to bullish as of 06 Feb 2026 at ₹1,014.55 per share. The company’s mojo score improved dramatically from 1 to 39 over the past three months, reflecting strong market confidence.

Looking ahead, investors will closely monitor upcoming results from VLS Finance Ltd on 15 Feb 2026, Sejal Glass Ltd on 16 Feb 2026, and ABB India Ltd on 19 Feb 2026. These companies operate in sectors sensitive to economic cycles and could provide further clarity on earnings momentum heading into the new fiscal year.

Investor Takeaways and Market Outlook

While the December quarter results reveal a cautiously optimistic earnings environment, the divergence between market caps and sectors suggests selective stock picking remains crucial. Mid-cap companies are currently driving profit growth and offer attractive opportunities for investors seeking capital appreciation. Meanwhile, large caps provide relative stability but face margin headwinds that could temper near-term gains.

Sectoral leaders in NBFC, E-Retail, and Heavy Electrical Equipment are setting the tone for earnings recovery, supported by favourable macroeconomic factors and government initiatives. However, inflationary pressures and geopolitical uncertainties remain risks that could impact future quarters.

Overall, the earnings season underscores the importance of a balanced portfolio approach, combining growth-oriented mid and small caps with defensive large caps to navigate the evolving market landscape effectively.

Summary

The Dec-2025 quarterly earnings season has delivered a mixed but improving picture, with 46.0% of companies reporting positive results and mid caps leading profit growth. Standout performers such as Jindal Poly Investment & Finance Company Ltd. have posted record-breaking numbers, while sectoral trends highlight the resilience of NBFCs, E-Retail, and Heavy Electrical Equipment. Investors should remain selective, focusing on quality earnings and sectoral tailwinds as they position portfolios for 2026.

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