Quarterly Earnings Trends Indicate Gradual Recovery

As of 25 May 2026, a total of 2,061 companies have declared their results for the March quarter. The proportion of companies reporting positive earnings has steadily increased over the last four quarters, rising from 41.0% in June 2025 to 55.0% in March 2026. This upward trajectory suggests a broad-based recovery in corporate earnings after a period of subdued performance.

The December 2025 quarter saw 46.0% of companies post positive results, while the September 2025 quarter recorded 44.0%. The consistent improvement reflects easing macroeconomic pressures and better operational execution across sectors.

Market Capitalisation Segments: Mid Caps Lead the Charge

Breaking down the results by market capitalisation reveals a distinct pattern. Mid-cap companies have delivered the strongest positive result ratio at 63.0%, significantly ahead of large caps at 48.0% and small caps at 54.0%. This suggests that mid-sized firms are currently better positioned to capitalise on improving economic conditions and sectoral tailwinds.

Large-cap companies, often viewed as market bellwethers, have shown more cautious earnings growth, with less than half reporting positive results. Small caps, while showing improvement, remain more volatile with a positive result proportion slightly below mid caps.

Sectoral Highlights and Top Performers

Among large caps, Muthoot Finance stood out with robust earnings in the Non-Banking Financial Company (NBFC) sector, reflecting sustained demand for credit and improved asset quality. The company’s performance underscores the resilience of NBFCs amid tightening financial conditions.

In the mid-cap space, Multi Commodity Exchange (Multi Comm. Exc.) led the pack within the Capital Markets sector, benefiting from increased trading volumes and heightened investor participation. This performance highlights the growing importance of financial market infrastructure firms in the current environment.

Small-cap stocks delivered some of the most impressive results, with Puravankara in Realty, Navin Fluorine International in Specialty Chemicals, and Indo Thai Securities in Capital Markets emerging as top performers. These companies demonstrated strong operational execution and margin expansion, signalling pockets of strength in their respective sectors.

Recent Standout Quarterly Performance: Shriram Properties Ltd.

Among the 35 companies that declared results in the last 24 hours, Shriram Properties Ltd. delivered a very positive financial performance for the March 2026 quarter. The company’s financial score improved markedly from -14 to 26 over the past three months, signalling a shift from sideways to mildly bullish momentum.

Shriram Properties reported net sales of ₹640.88 crores, representing a remarkable 147.9% growth compared to its previous four-quarter average. Profit before tax excluding other income surged by an extraordinary 1,250.4%, reaching ₹48.00 crores. Net profit after tax also expanded significantly by 348.4%, amounting to ₹78.53 crores.

Operational metrics were equally impressive, with the operating profit to interest ratio hitting a high of 4.60 times, and operating profit to net sales reaching 13.58%. The company’s earnings per share (EPS) for the quarter stood at ₹4.60, the highest recorded in recent quarters. These figures underscore Shriram Properties’ strong operational leverage and improving profitability in the realty sector.

Upcoming Earnings to Watch

Investors should keep an eye on the earnings announcements scheduled for 26 May 2026, including heavyweight Oil & Natural Gas Corporation Ltd., Siemens Ltd., and Authum Investment & Infrastructure Ltd. These results are expected to provide further clarity on sectoral momentum heading into the new fiscal year.

Implications for Investors and Market Outlook

The improving earnings trend, particularly among mid-cap companies, suggests a cautiously optimistic outlook for the Indian equity markets. The gradual rise in the proportion of positive results indicates that corporate India is navigating macroeconomic challenges with increasing confidence.

However, the relatively modest positive result ratio among large caps signals that investors should remain selective, focusing on companies with strong fundamentals and sectoral tailwinds. The standout performances in realty, specialty chemicals, and capital markets sectors highlight areas where growth and profitability are converging.

Overall, the March 2026 quarter earnings season reflects a market in transition, with pockets of strength emerging amid broader economic uncertainties. Investors would be well advised to monitor earnings quality and operational metrics closely as they position portfolios for the year ahead.

Summary

To summarise, the Q4 FY2026 earnings season has shown a steady improvement in corporate profitability, with mid-cap stocks leading the charge. Large caps remain cautious, while small caps display selective strength. Key sectors such as NBFCs, capital markets, and realty have delivered notable results, providing investors with actionable insights for portfolio allocation.

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