Overall Results Trend and Market Cap Analysis

The proportion of companies reporting positive quarterly results has edged up to 46.0% in Dec-2025, compared to 42.0% in the preceding September quarter and 40.0% in June. This marks a slight recovery from the subdued performance seen in the middle of the year, though still below the 45.0% positive results recorded in March 2025. The data suggests a cautious optimism among corporates amid ongoing macroeconomic challenges.

Breaking down by market capitalisation, mid-cap companies have delivered the strongest showing with 52.0% reporting positive results, followed by small caps at 46.0%. Large caps, however, have lagged with only 38.0% of firms posting positive earnings, indicating that the broader market rally has not yet fully translated into robust earnings growth among the largest companies. This divergence highlights the importance of selective stock picking in the current environment.

Sectoral and Company Highlights

Among large caps, TVS Motor Co. stood out with a strong quarterly performance in the automobile sector, benefiting from sustained demand and operational efficiencies. The company’s results underscore the resilience of the auto sector despite inflationary pressures and supply chain disruptions.

In the mid-cap space, FSN E-Commerce delivered impressive results, reflecting the continued expansion of the e-retail sector driven by rising digital penetration and consumer spending. The company’s growth trajectory remains robust, supported by innovative business models and expanding market reach.

Small caps also showcased notable performers such as Mahindra Life in realty, which reported solid earnings growth amid improving real estate demand and favourable financing conditions. Additionally, micro-cap stocks like Trescon (realty) and String Metaverse (paper, forest & jute products) emerged as top results overall, signalling pockets of strength in niche sectors.

Outstanding Performers in the Last 24 Hours

In the most recent 24-hour window, 194 companies declared results, with Kapston Services Ltd. emerging as a standout performer. The company, with a market size of ₹840.44 crores in the miscellaneous industry, demonstrated exceptional financial metrics for the December quarter.

Kapston Services’ profit before tax (excluding other income) surged by 100.29% to ₹6.93 crores, while net sales reached a record ₹212.66 crores. Operating profit to interest ratio improved to 3.44 times, reflecting enhanced operational efficiency and prudent financial management. The company’s profit after tax (PAT) rose by 64.0% to ₹7.43 crores, with earnings per share (EPS) hitting a quarterly high of ₹3.66. Inventory turnover ratio also stood out at 170.86 times, indicating strong inventory management.

These robust figures have shifted market sentiment on Kapston Services from mildly bullish to bullish as of 02 Feb 2026, signalling growing investor confidence in the company’s growth prospects.

Upcoming Earnings to Watch

Looking ahead, investors should keep an eye on key upcoming results scheduled for 09 Feb 2026, including those of Zydus Lifesciences Ltd., Linde India Ltd., and Aurobindo Pharma Ltd. These companies operate in sectors critical to the broader market narrative, such as pharmaceuticals and industrial gases, and their results could provide further clarity on sectoral momentum heading into the new fiscal year.

Aggregate Profit Growth and Market Implications

While the aggregate profit growth across the 1,662 companies is not uniform, the incremental improvement in positive results percentage suggests a tentative recovery phase. The mid-cap segment’s outperformance is particularly noteworthy, as it often signals early signs of economic revival before large caps catch up. However, the subdued large-cap earnings highlight ongoing challenges such as input cost inflation, global uncertainties, and cautious consumer spending.

Sectoral patterns reveal that cyclical industries like automobiles and realty are showing signs of resilience, whereas defensive sectors continue to provide stability amid volatility. Investors may consider balancing portfolios with exposure to mid and small caps that are demonstrating earnings momentum, while selectively engaging with large caps that have delivered strong operational improvements.

Conclusion

The December 2025 quarterly earnings season paints a picture of cautious optimism with pockets of strength across market capitalisations and sectors. Mid-cap companies are leading the charge with a higher proportion of positive results, while large caps remain under pressure but with notable exceptions such as TVS Motor Co. and Kapston Services. The evolving earnings landscape underscores the importance of discerning stock selection and sectoral analysis as investors navigate the complexities of the current market environment.

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