Quarterly Earnings Overview and Trends

As of 7 January 2026, a total of 4,041 companies have declared their results for the September 2025 quarter. The proportion of companies reporting positive earnings growth stood at 42.0%, a slight improvement from 40.0% in the June 2025 quarter but below the 44.0% recorded in March 2025. Notably, no results have been declared yet for the December 2025 quarter, which will be closely watched for signs of recovery or further pressure.

Breaking down by market capitalisation, mid cap companies led the pack with 50.0% reporting positive results, outperforming both large caps at 39.0% and small caps at 42.0%. This suggests that mid-sized firms are currently better positioned to navigate the prevailing economic environment, possibly due to greater operational agility and exposure to growth sectors.

Sectoral and Company Highlights

Among large caps, Tata Steel emerged as a standout performer within the ferrous metals sector, benefiting from improved commodity prices and operational efficiencies. The company’s earnings beat consensus estimates, driven by higher realisations and cost optimisation measures.

In the mid cap space, FSN E-Commerce delivered impressive results, reflecting the sustained growth in the e-retail sector. The company’s revenue and profit metrics surpassed expectations, supported by expanding market share and increased consumer spending online.

Small caps saw Shaily Engineering shine in the industrial plastic products segment, reporting strong volume growth and margin expansion. This performance underscores the resilience of niche manufacturing firms amid broader market volatility.

Micro caps also featured prominently among top performers, with Shree Salasar from the NBFC sector and String Metaverse in paper, forest, and jute products posting robust earnings. These companies have capitalised on sector-specific tailwinds and prudent cost management to deliver superior results.

Recent Notable Results: G M Breweries Ltd

In the last 24 hours, G M Breweries Ltd, a ₹2,771.33 crore beverage company, declared its December 2025 quarter results, showcasing a marked improvement in financial performance. The company’s score improved from 8 to 14 over the past three months, reflecting a bullish shift in market sentiment since 26 December 2025 when the stock was at ₹1,195.10.

Key highlights include a 76.21% growth in PAT (Profit After Tax) for the half year, reaching ₹76.90 crore, and a 59.0% increase in PBT (Profit Before Tax) excluding other income for the quarter at ₹51.38 crore, surpassing the previous four-quarter average. Net sales hit a record ₹202.14 crore, while PBDIT (Profit Before Depreciation, Interest and Tax) also reached a high of ₹52.58 crore. Operating profit to net sales ratio improved to 26.01%, indicating enhanced operational efficiency. Additionally, cash and cash equivalents rose to ₹108.40 crore, the highest in recent periods, signalling strong liquidity.

Upcoming Earnings to Watch

Investors should keep an eye on the forthcoming results from Transformers & Rectifiers India Ltd, Elecon Engineering Company Ltd, and Eimco Elecon (India) Ltd, all scheduled to report on 8 January 2026. These companies operate in capital goods and engineering sectors, which are critical barometers for industrial activity and infrastructure spending trends.

Aggregate Profit Growth and Market Implications

The aggregate profit growth across the declared results indicates a cautious optimism among corporates. While the overall positive result ratio remains below 50%, the improvement from the previous quarter and the strong showing by mid caps suggest selective sectoral recovery. Commodity-linked sectors such as ferrous metals and industrial manufacturing have benefited from stabilising input costs and improving demand.

Conversely, large caps continue to face headwinds from global economic uncertainties and inflationary pressures, which have constrained margin expansion. Small caps, while showing pockets of strength, remain vulnerable to volatility and liquidity concerns.

Market participants should therefore adopt a discerning approach, favouring companies with strong fundamentals, consistent earnings growth, and robust cash flows. The mid cap segment, in particular, offers attractive opportunities given its current outperformance and growth potential.

Outlook and Strategic Considerations

Looking ahead, the December 2025 quarter results will be pivotal in assessing the sustainability of the recovery trend. Macroeconomic factors such as interest rate movements, commodity price fluctuations, and domestic demand will continue to influence corporate earnings trajectories.

Investors are advised to monitor earnings quality, margin trends, and balance sheet strength closely. Companies demonstrating operational resilience and strategic agility are likely to outperform in the evolving market landscape.

Conclusion

The September 2025 earnings season has underscored the uneven nature of the current corporate recovery. Mid caps have emerged as the bright spot, delivering superior profit growth and positive results ratio. Large and small caps face mixed fortunes, with sectoral dynamics playing a decisive role. Select companies such as Tata Steel, FSN E-Commerce, Shaily Engineering, and G M Breweries have demonstrated commendable financial performance, offering investors potential avenues for portfolio enhancement.

As the market awaits the December quarter disclosures, maintaining a focus on fundamentals and sectoral strengths will be key to navigating the evolving investment landscape.

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