Quarterly Earnings Trends and Positive Result Proportions

The latest data reveals that 46.0% of companies reported positive results in the December 2025 quarter, a modest improvement from 44.0% in September 2025 but still below the 47.0% recorded in March 2025. The June 2025 quarter marked the lowest proportion in the last year at 42.0%, indicating some volatility in earnings performance over the past four quarters.

This oscillation suggests that while some sectors and companies are managing to navigate economic pressures, others continue to face margin compression and demand uncertainties. The aggregate profit growth remains uneven, with pockets of strong performance offset by widespread caution.

Market Capitalisation Segments: Divergent Earnings Outcomes

Breaking down the results by market capitalisation, mid-cap companies have outperformed their large- and small-cap peers in terms of positive earnings outcomes. Mid-caps reported a 52.0% rate of positive results, signalling resilience and possibly greater agility in adapting to market conditions. In contrast, large caps posted a 43.0% positive result rate, while small caps stood at 45.0%.

The relatively stronger showing from mid-caps may reflect their exposure to growth sectors and niche markets, whereas large caps are more susceptible to global economic headwinds and regulatory challenges. Small caps, often more volatile, continue to display mixed results, with some companies delivering robust earnings while others struggle to maintain profitability.

Sectoral Highlights: Standout Performers and Challenges

Among large caps, Muthoot Finance from the Non-Banking Financial Company (NBFC) sector emerged as a top performer, demonstrating robust earnings growth despite a challenging credit environment. The NBFC sector continues to show pockets of strength, particularly among companies with diversified loan portfolios and prudent risk management.

Mid-cap leaders include FSN E-Commerce, which has capitalised on the sustained growth in online retail and digital penetration. The e-retail sector’s resilience is underscored by strong revenue growth and improving profitability metrics, driven by expanding consumer adoption and operational efficiencies.

In the small-cap space, Cupid from the FMCG sector delivered impressive results, benefiting from steady demand in consumer staples and effective cost control measures. FMCG companies with strong brand equity and distribution networks continue to outperform amid inflationary pressures.

Micro-cap companies also made headlines, with Trescon (Realty), Jindal Poly Inve (NBFC), and Unifinz Capital (NBFC) posting some of the best results overall. These companies have shown remarkable earnings growth, reflecting niche market opportunities and focused business models.

Recent Notable Results: Sunrakshakk Industries India Ltd

In the last 24 hours, 180 companies declared results, with Sunrakshakk Industries India Ltd standing out for its exceptional performance in the garments and apparels industry. The company reported net sales of ₹163.95 crores for the December 2025 quarter, marking a 74.6% growth compared to its previous four-quarter average.

Profitability metrics also surged, with PBDIT reaching a record ₹15.26 crores and PBT less other income at ₹10.95 crores, up 68.9%. Net profit after tax (PAT) rose 70.2% to ₹9.41 crores, while earnings per share (EPS) hit a high of ₹15.18. These figures underscore Sunrakshakk Industries’ strong operational execution and market demand recovery.

The company’s financial score improved from 26 to 30 over the past three months, signalling enhanced financial health and investor confidence. Notably, the stock transitioned from a mildly bearish to a sideways trend on 1 February 2026 at ₹241.90, reflecting market recognition of its improved fundamentals.

Upcoming Earnings to Watch

Investors should keep an eye on the forthcoming results of several key companies, including Sejal Glass Ltd scheduled for 16 February 2026, and ABB India Ltd and CIE Automotive India Ltd, both expected to report on 19 February 2026. These companies operate in sectors sensitive to industrial demand and infrastructure spending, which could provide further insights into economic momentum.

Aggregate Profit Growth and Market Implications

While the proportion of companies reporting positive results has shown slight improvement, aggregate profit growth remains modest and uneven across sectors. The cautious earnings environment reflects persistent inflationary pressures, supply chain disruptions, and geopolitical uncertainties impacting business operations.

Large caps, despite their scale and diversification, face margin pressures from rising input costs and subdued global demand. Mid-caps’ relatively better performance suggests that nimble companies with focused strategies and growth-oriented sectors are better positioned to capitalise on emerging opportunities.

Small and micro caps continue to be volatile, with earnings outcomes heavily influenced by sectoral dynamics and company-specific factors. Investors are advised to adopt a selective approach, favouring companies with strong balance sheets, sustainable earnings quality, and clear growth catalysts.

Conclusion: Navigating a Mixed Earnings Season

The December 2025 quarter earnings season paints a nuanced picture of the Indian corporate landscape. While nearly 4,000 companies have reported results, the overall earnings momentum remains cautious, with less than half delivering positive outcomes. Sectoral disparities and market cap differences highlight the importance of discerning stock selection amid ongoing economic challenges.

Companies like Muthoot Finance, FSN E-Commerce, and Sunrakshakk Industries exemplify pockets of strength, offering potential investment opportunities. However, the broader market environment calls for vigilance as inflationary and geopolitical risks persist.

As the next wave of results approaches, investors should monitor key sectors and companies for signs of sustained recovery or further headwinds, adjusting portfolios accordingly to balance risk and reward in this evolving earnings landscape.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →