Quarterly Earnings Overview and Trends

As of 7 January 2026, a total of 4,040 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 the 40.0% recorded in the June 2025 quarter but marginally below the 44.0% seen in March 2025. This indicates a modest recovery in corporate profitability after a subdued first half of the fiscal year.

Sectoral and market cap-wise analysis reveals a clear pattern: mid-cap stocks have outperformed their large and small-cap counterparts in terms of positive earnings surprises. Specifically, 50.0% of mid-cap companies reported positive results, compared to 42.0% for small caps and 39.0% for large caps. This suggests that mid-sized firms are currently better positioned to capitalise on economic growth drivers and operational efficiencies.

Large Cap Performance: Tata Steel Leads Amidst Ferrous Metals Sector Strength

Within the large-cap universe, Tata Steel emerged as a standout performer, benefiting from a rebound in steel demand and improved realisations. The ferrous metals sector, traditionally cyclical, has shown signs of revival, supported by infrastructure spending and export opportunities. However, despite Tata Steel’s strong showing, the overall large-cap segment lagged behind mid caps in terms of positive earnings momentum, reflecting ongoing challenges in sectors such as banking, IT, and energy.

Mid Cap Momentum: FSN E-Commerce Shines in a Digital-First Economy

Mid-cap stocks have been the primary drivers of earnings growth this quarter, with FSN E-Commerce leading the pack. Operating in the rapidly expanding e-retail sector, FSN E-Commerce reported robust revenue growth and margin expansion, reflecting increased consumer adoption of online platforms and effective cost management. This performance underscores the resilience and growth potential of digital economy players amid evolving consumer behaviour.

Small and Micro Cap Highlights: Industrial and NBFC Sectors Gain Traction

Among small caps, Shaily Engineering, a player in the plastic products industrial sector, delivered impressive results, supported by steady demand from automotive and consumer goods industries. On the micro-cap front, Shree Salasar from the Non-Banking Financial Company (NBFC) sector and String Metaverse from the paper, forest, and jute products sector posted top results, signalling pockets of strength in niche segments.

Recent Quarterly Standouts: G M Breweries’ Bullish Turn

In the last 24 hours, G M Breweries Ltd, a beverages company with a market capitalisation of ₹2,727.92 crores, declared its December 2025 quarter results, marking a significant positive shift. The company’s sentiment upgraded from mildly bullish to bullish on 26 December 2025 at a share price of ₹1,195.10. Its MarketsMOJO score improved markedly from 8 to 14 over the past three months, reflecting enhanced financial health and operational performance.

Key financial highlights for G M Breweries include a 76.21% year-on-year growth in Profit After Tax (PAT) at ₹76.90 crores and a 59.0% increase in Profit Before Tax excluding other income (PBT less OI) at ₹51.38 crores, surpassing the previous four-quarter average. Net sales reached a record ₹202.14 crores, while PBDIT hit a high of ₹52.58 crores. The operating profit margin to net sales ratio also improved to 26.01%, signalling efficient cost control. Additionally, cash and cash equivalents rose to ₹108.40 crores, the highest in recent history, bolstering the company’s liquidity position.

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 of industrial activity and infrastructure development in India.

Aggregate Profit Growth and Market Implications

The aggregate earnings growth across the market remains moderate, with the 42.0% positive result ratio indicating cautious optimism among corporates. The mid-cap segment’s outperformance suggests that investors seeking growth opportunities may find better prospects outside the large-cap space, which continues to grapple with sector-specific challenges and global macroeconomic uncertainties.

Sectoral trends highlight the ongoing recovery in industrial metals and digital commerce, while traditional sectors such as banking and energy require closer scrutiny due to mixed earnings outcomes. The improving cash positions and margin expansions in select companies like G M Breweries provide encouraging signs of operational resilience and financial discipline.

Investor Takeaways

For investors, the current earnings season underscores the importance of selective stock picking, with mid and small caps offering pockets of growth amid a broadly cautious market environment. Monitoring companies with strong earnings momentum, improving profitability ratios, and robust cash flows will be key to navigating the evolving landscape.

Furthermore, the upcoming earnings from engineering and capital goods firms will provide additional clarity on the health of India’s industrial sector, which remains a vital driver of economic expansion.

Conclusion

The September 2025 quarter results paint a picture of a market in transition, with mid-cap companies leading the charge in earnings growth while large caps face a more challenging backdrop. Sectoral disparities and company-specific fundamentals will continue to shape investor sentiment in the near term. As the earnings season progresses, a focus on quality, growth potential, and financial strength will remain paramount for discerning market participants.

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