Quarterly Earnings Trends and Positive Result Proportions

The latest quarter saw 46.0% of companies reporting positive results, a slight improvement from 44.0% in September 2025 and 42.0% in June 2025, though still marginally below the 47.0% recorded in March 2025. This oscillation suggests a market grappling with mixed economic signals and sector-specific challenges. The incremental rise in positive results indicates some stabilisation but also highlights the ongoing pressures faced by many firms in sustaining profitability.

Market Capitalisation Breakdown: Mid Caps Lead Positivity

Analysing results by market capitalisation reveals a differentiated landscape. Mid-cap companies outperformed their peers with 52.0% reporting positive results, signalling resilience and potential growth momentum in this segment. Large caps lagged behind with 43.0% positive results, reflecting the impact of global macroeconomic uncertainties and sectoral headwinds on established giants. Small caps reported 45.0% positive outcomes, indicating moderate recovery but still facing volatility and operational challenges.

Sectoral Highlights and Top Performers

Among large caps, Muthoot Finance stood out with robust earnings in the Non-Banking Financial Company (NBFC) sector, benefiting from sustained demand for credit and improved asset quality. The mid-cap space was led by FSN E-Commerce, which demonstrated strong revenue growth and margin expansion in the E-Retail sector, capitalising on increased digital penetration and consumer spending. In the small-cap category, Mahindra Life from the Realty sector delivered encouraging results, supported by steady sales and cost control measures.

Micro-cap companies also made notable contributions with Trescon (Realty) and Jindal Poly Inve (NBFC) posting impressive earnings, while Indo Thai Securities (Capital Markets) emerged as a top performer among small caps, reflecting niche sectoral strength and effective management strategies.

Recent 24-Hour Highlights: Sunrakshakk Industries India Ltd

In the last 24 hours, 180 companies declared results, with Sunrakshakk Industries India Ltd (Garments & Apparels) delivering an outstanding quarter. The company’s net sales surged 74.6% to ₹163.95 crores, marking the highest quarterly sales in recent history. Profit before depreciation, interest and tax (PBDIT) reached ₹15.26 crores, while profit before tax excluding other income (PBT less OI) rose 68.9% to ₹10.95 crores. Net profit after tax (PAT) also climbed 70.2% to ₹9.41 crores, with earnings per share (EPS) hitting a peak of ₹15.18. This performance reflects strong operational execution and favourable market conditions in the apparel sector.

Aggregate Profit Growth and Earnings Quality

Despite the mixed proportion of positive results, aggregate profit growth across sectors has shown encouraging signs. Several companies have reported their highest quarterly profits in recent years, driven by cost rationalisation, improved realisations, and operational efficiencies. However, the quality of earnings remains a key focus, with some firms experiencing pressure from rising input costs and supply chain disruptions.

Large-cap companies, while posting moderate positive results, have faced margin compression in commodity-linked sectors and export-oriented industries due to currency fluctuations and geopolitical tensions. Conversely, mid-cap firms have leveraged niche market opportunities and innovation to sustain earnings growth, often outperforming broader indices.

Upcoming Earnings to Watch

Investors will closely monitor the upcoming results from notable companies such as Sejal Glass Ltd on 16 February 2026, ABB India Ltd on 19 February 2026, and CIE Automotive India Ltd also on 19 February 2026. These companies operate in sectors sensitive to industrial demand and global supply chains, and their performance will provide further clarity on the economic outlook for the coming quarters.

Sectoral Patterns and Market Implications

The earnings season has underscored the divergent fortunes across sectors. The NBFC sector continues to recover with improved asset quality and credit demand, while the Realty sector shows signs of revival supported by government incentives and urban demand. E-commerce and digital retail remain growth engines, benefiting from changing consumer behaviour and technology adoption.

However, sectors such as commodities, capital goods, and export-oriented industries face headwinds from inflationary pressures and global uncertainties. This uneven sectoral performance suggests that investors should adopt a selective approach, focusing on companies with strong balance sheets, sustainable earnings growth, and robust cash flows.

Conclusion: Navigating a Complex Earnings Environment

The December 2025 quarter results reflect a complex earnings environment characterised by cautious optimism. While the proportion of companies reporting positive results has improved slightly, the overall landscape remains mixed with significant variation across market caps and sectors. Investors are advised to analyse individual company fundamentals carefully, considering both growth prospects and risks amid evolving macroeconomic conditions.

With nearly 4,000 companies having reported, the data provides a comprehensive view of corporate India’s current health, highlighting pockets of strength alongside areas requiring vigilance. The upcoming earnings announcements will be critical in shaping market sentiment and guiding investment strategies for the remainder of the fiscal year.

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