Overall Earnings Landscape and Quarterly Trends

The proportion of companies reporting positive results has shown a gradual uptick over the last four quarters, rising from 40.0% in June 2025 to 48.0% in December 2025. This improvement suggests a tentative recovery in corporate earnings after a subdued first half of the fiscal year. However, the gains are unevenly distributed, with mid-cap firms leading the charge, followed by small caps and large caps.

Large-cap companies, often considered the bellwethers of the market, posted a relatively modest 36.0% positive result ratio, indicating that many heavyweight firms are still grappling with margin pressures and subdued demand. In contrast, mid-cap stocks delivered a robust 54.0% positive result ratio, reflecting stronger operational execution and sectoral tailwinds in select industries.

Small caps maintained a steady 48.0% positive result ratio, signalling resilience but also heightened volatility given their size and sectoral concentration.

Sectoral and Market Cap Highlights

Among large caps, TVS Motor Company stood out with a strong earnings beat in the automobile sector, benefiting from improved domestic demand and cost rationalisation. The company’s ability to navigate supply chain constraints and maintain healthy margins has been a key driver of its positive performance this quarter.

In the mid-cap space, GE Vernova T&D from the heavy electrical equipment sector delivered impressive results, buoyed by increased infrastructure spending and government initiatives supporting power transmission projects. The company’s revenue growth and margin expansion have been well received by investors, contributing to its top-tier performance.

Among small caps, Mahindra Life

Micro-cap stocks also showcased some exceptional performers, with String MetaverseCupid

Exceptional Quarterly Performance: Shukra Pharmaceuticals Ltd.

Among the 201 companies that declared results in the last 24 hours, Shukra Pharmaceuticals Ltd. delivered an outstanding financial performance for the December 2025 quarter. The company’s net sales surged to ₹39.13 crores, marking a remarkable 345.7% growth compared to its previous four-quarter average. Profit before tax (excluding other income) soared by 1,212.0% to ₹26.01 crores, while net profit after tax expanded by 580.9% to ₹20.36 crores.

Shukra Pharma also reported its highest-ever quarterly operating profit margin at 69.33%, with PBDIT reaching ₹27.13 crores. Earnings per share (EPS) stood at ₹0.46, the highest recorded by the company to date. These metrics underscore a significant operational turnaround and robust demand for its pharmaceutical products.

The company’s mojo score improved dramatically from 3 to 37 over the past three months, reflecting enhanced market sentiment and financial strength. Notably, Shukra Pharma’s rating shifted from Bullish to Mildly Bullish on 31 Dec 2025 at a share price of ₹59.25, signalling cautious optimism among investors.

Aggregate Profit Growth and Market Implications

The aggregate earnings growth across sectors remains mixed but shows signs of stabilisation. While certain cyclical sectors such as automobiles and heavy electrical equipment have demonstrated resilience, others continue to face headwinds from inflationary pressures and global economic uncertainties.

Large-cap companies, despite their scale, are yet to fully capitalise on the improving macroeconomic environment, with many reporting margin contractions or muted revenue growth. Mid-cap firms, however, appear better positioned to leverage sector-specific growth drivers and operational efficiencies, resulting in superior earnings outcomes.

Small and micro-cap stocks continue to offer pockets of high growth, albeit with increased risk profiles. Investors are advised to exercise selectivity, focusing on companies with strong balance sheets and sustainable business models.

Upcoming Earnings to Watch

Market participants will closely monitor the results of marquee companies scheduled to report on 06 Feb 2026, including Shree Cement Ltd., Siemens Ltd., and Tata Steel Ltd. These firms operate in sectors critical to the broader economy and their earnings will provide further clarity on industrial demand and pricing power amid evolving market conditions.

Conclusion: Navigating the Earnings Season

The December 2025 earnings season paints a complex picture of recovery and caution. While mid-cap companies have delivered encouraging results, large caps remain under pressure, reflecting ongoing challenges in demand and cost management. Select small and micro-cap stocks continue to surprise with strong growth, highlighting the importance of granular stock selection in the current environment.

Investors should remain vigilant, balancing exposure across market caps and sectors, and prioritising companies with demonstrable earnings quality and sustainable growth trajectories. The upcoming results from key industrial and infrastructure players will be pivotal in shaping market sentiment in the near term.

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