Quarterly Earnings Landscape: A Gradual Uptick in Positive Results

The proportion of companies reporting positive results has shown a gradual improvement over the last four quarters, rising from 42.0% in June 2025 to 46.0% in December 2025. This incremental increase suggests a tentative recovery in corporate profitability, albeit with significant variation across market capitalisation segments.

Large-cap companies posted a positive result ratio of 43.0%, trailing behind mid-caps which led with 52.0%. Small caps registered a 45.0% positive result rate, indicating a relatively balanced performance between smaller and larger firms. The mid-cap segment’s outperformance is noteworthy, reflecting stronger earnings momentum and possibly greater agility in navigating current economic conditions.

Sectoral Highlights and Top Performers

Among large caps, Muthoot Finance stood out with robust earnings, reinforcing its position in the Non-Banking Financial Company (NBFC) sector. The company’s results underscore the resilience of NBFCs amid tightening credit conditions and evolving regulatory frameworks.

In the mid-cap space, FSN E-Commerce delivered impressive results, benefiting from sustained growth in the e-retail sector. The company’s ability to capitalise on increasing digital penetration and consumer spending trends has translated into strong top-line and bottom-line growth.

Small-cap leader Cupid from the FMCG sector demonstrated solid earnings expansion, driven by product innovation and expanding distribution networks. This performance highlights the continued consumer demand resilience in the fast-moving consumer goods space.

Micro-Cap Stars: Exceptional Performances

Micro-cap stocks delivered some of the most remarkable results this quarter. Trescon from the realty sector and Jindal Poly Inve, another NBFC, posted standout earnings, signalling pockets of strength in niche segments. Additionally, Navin Fluorine International, a specialty chemicals company in the small-cap category, recorded robust profit growth, reflecting favourable industry dynamics and operational efficiencies.

Recent Notable Results: Shraddha Prime Projects Ltd

Among the 32 companies that declared results in the last 24 hours, Shraddha Prime Projects Ltd from the realty sector delivered an outstanding quarterly performance. The company’s net sales surged by 81.1% to ₹129.01 crores compared to its previous four-quarter average, while profit before tax (excluding other income) rose by 94.4% to ₹20.24 crores.

Profit after tax (PAT) also increased significantly by 63.7% to ₹13.70 crores, marking the highest quarterly PAT recorded by the company. The earnings per share (EPS) reached a peak of ₹3.39, reflecting strong operational execution and favourable market conditions. Shraddha Prime’s financial score improved to 32 from 30 over the past three months, signalling enhanced investor confidence.

Market Capitalisation and Earnings Quality

The divergence in earnings quality across market capitalisation tiers remains a key theme. Large caps, despite their size and market influence, have lagged mid-caps in delivering positive surprises and profit growth. This may be attributed to the larger firms’ exposure to mature markets and regulatory pressures, which can constrain rapid earnings expansion.

Mid-cap companies, often characterised by higher growth potential and nimble management, have capitalised on emerging opportunities, particularly in sectors like e-commerce, speciality chemicals, and NBFCs. Small caps and micro caps continue to offer selective opportunities, with some companies posting exceptional results that could attract investor interest.

Upcoming Earnings to Watch

Investors should keep an eye on the forthcoming results from key companies such as ABB India Ltd and CIE Automotive India Ltd, both scheduled to report on 19 February 2026, as well as PVP Ventures Ltd on 23 February 2026. These companies operate in sectors that have shown mixed earnings trends, and their results could provide further clarity on sectoral momentum heading into the new fiscal year.

Outlook and Investor Takeaways

The December quarter earnings season paints a picture of cautious optimism. While the overall proportion of positive results has improved modestly, the market continues to grapple with uneven sectoral performances and varying earnings quality across capitalisation segments. Mid-cap stocks remain the bright spot, offering stronger growth prospects and higher beat ratios.

Investors are advised to adopt a selective approach, focusing on companies with demonstrated earnings resilience, strong operational metrics, and favourable sectoral tailwinds. The recent stellar performances in micro and small caps highlight the potential for alpha generation in less-followed segments, albeit with higher risk.

As the market digests these results, attention will also turn to macroeconomic factors and policy developments that could influence corporate profitability in the coming quarters.

Summary

The earnings season for December 2025 has revealed a market in transition, with a slight improvement in positive earnings outcomes but persistent disparities across sectors and market caps. Mid-cap companies continue to lead in earnings growth and positive surprises, while large caps face headwinds. Select micro and small caps have delivered exceptional results, underscoring the importance of granular stock selection in the current environment.

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