Overall Earnings Landscape and Quarterly Trends

The latest quarter’s results indicate a gradual uptick in corporate profitability, albeit with considerable variation across sectors and market cap segments. The proportion of companies reporting positive results has inched up from 42.0% in June 2025 to 46.0% in December 2025, signalling a tentative recovery in earnings confidence. However, this remains below the 47.0% positivity recorded in March 2025, suggesting that the recovery is uneven and subject to ongoing macroeconomic headwinds.

Large-cap companies, often viewed as bellwethers for the broader economy, have shown a subdued performance with only 43.0% posting positive results. This contrasts sharply with mid-cap firms, where 52.0% have reported favourable earnings, highlighting the resilience and growth potential in this segment. Small caps stand at 45.0%, reflecting a mixed but cautiously optimistic outlook.

Sectoral Highlights and Standout Performers

Among large caps, Muthoot Finance from the Non-Banking Financial Company (NBFC) sector emerged as a top performer, demonstrating robust earnings growth amid a challenging credit environment. The company’s ability to sustain profitability and maintain asset quality has been a key driver of its strong results.

In the mid-cap space, FSN E-Commerce has delivered impressive results, benefiting from sustained consumer demand and operational efficiencies in the e-retail sector. This performance underscores the ongoing structural shift towards digital commerce and the growing market share of organised players.

Among small caps, Quality Power El, operating in the Heavy Electrical Equipment sector, has stood out with solid earnings growth, reflecting increased industrial activity and infrastructure investments. The company’s operational leverage and cost management have contributed to its strong quarterly showing.

Exceptional Micro Cap Performances

Micro cap stocks have produced some of the most remarkable results this quarter. Trescon in the Realty sector and Jindal Poly Investment & Finance Company Ltd. in the NBFC sector have delivered outstanding financial performances, with Jindal Poly Investment & Finance Company Ltd. notably turning bullish from mildly bullish on 06 Feb 2026 at Rs 1,014.55.

Jindal Poly Investment & Finance Company Ltd. reported net sales of Rs 961.80 crore for the quarter, an extraordinary growth of 12,230.77% year-on-year. Profit before tax (excluding other income) surged by 2,360.61% to Rs 839.56 crore, while profit after tax soared by 2,000.1% to Rs 702.05 crore. The company also recorded its highest-ever earnings per share (EPS) at Rs 667.98, alongside an operating profit to net sales ratio of 99.99%, underscoring exceptional operational efficiency.

Market Cap Analysis: Divergent Earnings Momentum

The disparity in earnings positivity across market capitalisations is a notable feature of this quarter’s results. Mid-cap companies continue to outperform, with a 52.0% positive result ratio, reflecting their agility and growth orientation. This segment benefits from a combination of domestic demand recovery and sectoral tailwinds, particularly in consumer discretionary, technology, and financial services.

Large caps, despite their scale and market leadership, have struggled to maintain earnings momentum, with only 43.0% reporting positive results. This may be attributed to global economic uncertainties, inflationary pressures, and supply chain disruptions impacting multinational and export-oriented firms.

Small caps, at 45.0%, present a mixed bag, with pockets of strong performance in sectors such as heavy electrical equipment and specialised financial services, but also facing challenges from tighter liquidity conditions and cost inflation.

Key Upcoming Results to Watch

Investors should keep an eye on the forthcoming quarterly results from notable companies such as VLS Finance Ltd (due 15 Feb 2026), Sejal Glass Ltd (16 Feb 2026), and ABB India Ltd (19 Feb 2026). These companies operate in sectors that have shown resilience and could provide further clarity on earnings trends heading into the new fiscal year.

Implications for Investors and Market Outlook

The December 2025 earnings season highlights a market in transition, with mid-cap firms leading the recovery while large caps face headwinds. The mixed results underscore the importance of selective stock picking and sectoral analysis in navigating the current environment. Investors may favour companies demonstrating strong operational metrics, robust cash flows, and sustainable profitability, particularly in sectors benefiting from structural growth trends.

Quality micro and small caps with demonstrated turnaround stories, such as Jindal Poly Investment & Finance Company Ltd., offer compelling opportunities for investors seeking alpha in a challenging market. However, caution remains warranted given the uneven recovery and macroeconomic uncertainties.

Summary of Key Metrics

• Total stocks declared results: 3,729 for Dec-2025 quarter
• Positive results proportion: 46.0% (Dec-2025), up from 44.0% (Sep-2025)
• Large Cap positive results: 43.0%
• Mid Cap positive results: 52.0%
• Small Cap positive results: 45.0%
• Top Large Cap performer: Muthoot Finance (NBFC)
• Top Mid Cap performer: FSN E-Commerce (E-Retail)
• Top Small Cap performer: Quality Power El (Heavy Electrical Equipment)
• Outstanding Micro Cap performers: Trescon (Realty), Jindal Poly Investment & Finance Company Ltd. (NBFC)

Conclusion

The earnings season for the December 2025 quarter paints a picture of cautious optimism. While mid-cap companies continue to drive earnings growth, large caps face ongoing challenges. Exceptional performances from select micro and small caps highlight the potential for significant value creation in niche segments. Investors are advised to maintain a balanced approach, focusing on companies with strong fundamentals and clear growth trajectories as the market navigates an evolving economic landscape.

Unlock special upgrade rates for a limited period. Start Saving Now →