Quarterly Earnings Trends and Positive Result Proportions

The latest quarter saw 46.0% of companies reporting positive results, a modest improvement over the 44.0% in September 2025 and 42.0% in June 2025, though slightly below the 47.0% recorded in March 2025. This gradual upward trend suggests a stabilisation in corporate earnings after a period of volatility. However, the aggregate figure masks significant variation across market capitalisation tiers.

Large-cap companies reported a positive result rate of 42.0%, trailing behind mid-cap firms which posted a robust 52.0% positivity rate. Small caps stood at 45.0%, indicating a moderate recovery but still lagging mid-caps. This divergence underscores the relative agility and growth orientation of mid-sized companies in the current economic environment, while large caps face more pronounced headwinds from global macroeconomic pressures and sector-specific challenges.

Sectoral and Market Cap Highlights

Among large caps, Muthoot Finance emerged as a standout performer within the Non-Banking Financial Company (NBFC) sector, delivering results that surpassed expectations. The company’s ability to maintain asset quality and expand its loan book amid tightening credit conditions has been a key driver of its strong quarterly performance.

Mid-cap stocks also showcased impressive earnings, with FSN E-Commerce leading the pack in the E-Retail/E-Commerce sector. The company benefited from sustained consumer demand and operational efficiencies, translating into higher revenue growth and margin expansion. This performance reflects the ongoing digital transformation and increasing penetration of e-commerce in India’s retail landscape.

In the small-cap space, Cupid from the FMCG sector delivered solid results, supported by strong volume growth and effective cost management. The company’s focus on niche product segments and rural market expansion has helped it navigate competitive pressures and inflationary challenges.

Top Performers Across Market Caps

Micro-cap companies also made notable contributions to the earnings season. Jindal Poly Inve, another NBFC, and Trescon from the Realty sector, posted some of the best results in their categories. Their ability to capitalise on sectoral tailwinds and maintain disciplined cost structures has been instrumental in their earnings growth.

Additionally, Indo Thai Securities in the Capital Markets sector stood out among small caps, reflecting increased market activity and improved brokerage revenues. These results highlight the varied opportunities available in smaller market segments despite broader economic uncertainties.

Spotlight on Shraddha Prime Projects Ltd: Exceptional Quarterly Performance

Among the 37 companies that declared results in the last 24 hours, Shraddha Prime Projects Ltd (market cap ₹727.22 crores) delivered an outstanding financial performance for the December 2025 quarter. The company’s score improved from 30 to 32 over the past three months, signalling enhanced operational and financial metrics.

Shraddha Prime’s net sales surged by 81.1% compared to its previous four-quarter average, reaching ₹129.01 crores. Profit before tax excluding other income (PBT less OI) rose by 94.4% to ₹20.24 crores, while profit after tax (PAT) increased by 63.7% to ₹13.70 crores. Both PBDIT and PBT less OI hit record highs for the company this quarter, at ₹20.17 crores and ₹20.24 crores respectively. Earnings per share (EPS) also peaked at ₹3.39, underscoring the company’s strong profitability trajectory.

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 momentum, and their results could provide further clarity on sectoral trends heading into the new fiscal year.

Aggregate Profit Growth and Market Implications

While the proportion of companies reporting positive results has improved modestly, aggregate profit growth remains uneven. Mid-cap companies continue to outperform, benefiting from nimble business models and sectoral tailwinds, whereas large caps face challenges from global economic uncertainties and domestic inflationary pressures. Small caps show signs of recovery but remain vulnerable to volatility.

This earnings season reinforces the importance of selective stock picking and sectoral analysis. Investors may favour mid-cap and select small-cap companies demonstrating consistent earnings upgrades and margin improvements. Meanwhile, large caps with resilient business models and strong balance sheets, such as Muthoot Finance, remain attractive for risk-averse portfolios.

Sectoral Patterns and Outlook

The NBFC sector has been a notable outperformer, with companies like Muthoot Finance and Jindal Poly Inve delivering strong earnings growth despite a challenging credit environment. The Realty sector, represented by firms such as Trescon and Shraddha Prime Projects, is showing signs of revival, supported by improving demand and easing input costs.

The FMCG and E-Commerce sectors continue to benefit from structural growth drivers, with companies like Cupid and FSN E-Commerce posting robust results. These sectors are expected to remain key contributors to earnings growth in the near term, driven by rising consumer spending and digital adoption.

Investor Takeaways

Given the mixed earnings landscape, investors should adopt a discerning approach, focusing on companies with strong earnings quality, sustainable growth prospects and prudent capital allocation. Mid-cap stocks with demonstrated earnings momentum and large caps with defensive characteristics may offer balanced risk-reward profiles. Monitoring upcoming results from key sector leaders will be crucial to gauge the sustainability of current trends.

Conclusion

The December 2025 quarterly results season paints a picture of cautious optimism. While the overall proportion of positive earnings has improved, the disparity across market caps and sectors highlights ongoing challenges and opportunities. Selectivity remains paramount as investors navigate a complex macroeconomic backdrop and evolving corporate fundamentals.

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