Overall Earnings Landscape and Trends

The latest quarter saw 46.0% of companies reporting positive results, a slight improvement from 44.0% in September 2025 and 42.0% in June 2025, though still below the 47.0% recorded in March 2025. This oscillation suggests a cautious recovery in corporate profitability amid ongoing macroeconomic challenges. Aggregate profit growth remains uneven, with pockets of robust expansion counterbalanced by sectors facing margin pressures and subdued demand.

Market capitalisation-wise, mid-cap stocks led the pack with 52.0% delivering positive results, outperforming large caps at 43.0% and small caps at 45.0%. This outperformance by mid-caps highlights their relative agility and sectoral positioning in the current economic cycle, offering investors selective opportunities for alpha generation.

Large Cap Highlights: Stability Amidst Modest Growth

Among large caps, Muthoot Finance stood out with a strong quarterly performance in the Non-Banking Financial Company (NBFC) sector. The company demonstrated resilience through steady loan book growth and improved asset quality, contributing to a healthy rise in net interest income and profit before tax. Despite macroeconomic headwinds, Muthoot Finance’s disciplined risk management and diversified portfolio helped it sustain earnings momentum.

However, the broader large-cap universe showed mixed results, with many blue-chip companies facing margin compression due to rising input costs and cautious consumer spending. The 43.0% positive result ratio in this segment reflects these headwinds, signalling that investors should remain selective and focus on quality names with strong balance sheets and sustainable earnings growth.

Mid Cap Momentum: E-Commerce and Beyond

Mid-cap stocks delivered the highest proportion of positive results at 52.0%, driven by standout performers such as FSN E-Commerce in the E-Retail sector. FSN E-Commerce reported robust revenue growth, supported by expanding customer base and improved operational efficiencies. The company’s ability to scale while controlling costs translated into a significant jump in profitability, underscoring the sector’s growth potential amid digital adoption trends.

Other mid-cap companies also benefited from sectoral tailwinds in technology, pharmaceuticals, and speciality manufacturing, which helped offset challenges in cyclical industries. This segment’s outperformance suggests that mid-caps remain a fertile ground for investors seeking growth beyond the large-cap stalwarts.

Small and Micro Cap Insights: Selective Strengths Amid Volatility

Small caps reported a 45.0% positive result ratio, reflecting a mixed bag of earnings outcomes. Notable performers included Indo Thai Securities in the Capital Markets sector and Cupid in FMCG, both delivering strong revenue and profit growth on the back of favourable sectoral trends and operational improvements.

Micro caps, while generally more volatile, produced some of the quarter’s top results. Jindal Poly Investment (NBFC sector) and Trescon (Realty sector) posted impressive earnings growth, signalling pockets of opportunity in niche segments. These companies benefited from focused business models and improving market conditions, though investors should remain mindful of the higher risk profile inherent in micro-cap stocks.

Spotlight on Realty Sector: Shraddha Prime Projects Ltd’s Outstanding Quarter

Among the 40 results declared in the last 24 hours, Shraddha Prime Projects Ltd, a mid-sized realty company with a market cap of ₹719 crores, delivered an exceptional performance for the December 2025 quarter. The company’s net sales surged by 81.1% compared to its previous four-quarter average, reaching ₹129.01 crores. Profit before tax (excluding other income) rose sharply by 94.4% to ₹20.24 crores, while profit after tax grew 63.7% to ₹13.70 crores.

Shraddha Prime also recorded its highest-ever quarterly earnings per share (EPS) at ₹3.39, reflecting strong operational execution and improved market demand. The company’s PBDIT and PBT (less other income) both hit record highs, underscoring robust margin expansion and cost control. This performance has elevated its financial score from 30 to 32 over the past three months, signalling sustained improvement and investor confidence.

Sectoral Patterns and Earnings Quality

The earnings season has highlighted divergent sectoral fortunes. NBFCs continue to show resilience, supported by improving asset quality and credit growth, as evidenced by Muthoot Finance and Jindal Poly Investment. E-commerce and digital retail remain growth engines, with FSN E-Commerce exemplifying the benefits of scale and innovation.

Conversely, sectors such as realty, while volatile, are showing signs of recovery with companies like Shraddha Prime Projects leading the charge. Capital markets firms are benefiting from increased market activity and asset management fees, while FMCG players like Cupid are capitalising on steady consumer demand and premiumisation trends.

However, inflationary pressures and global uncertainties continue to weigh on margins in commodity-linked and cyclical sectors, necessitating cautious stock selection and a focus on companies with pricing power and operational efficiencies.

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 scheduled for 19 February 2026, and RRP Defense Ltd on 20 February 2026. These companies operate in sectors sensitive to global demand and supply chain dynamics, and their earnings will provide further clarity on the sustainability of current trends.

Conclusion: Navigating a Mixed Earnings Terrain

The December 2025 quarter earnings season paints a picture of cautious optimism. While the overall proportion of positive results has improved slightly, the gains are unevenly distributed across market caps and sectors. Mid-cap stocks have emerged as relative outperformers, driven by dynamic sectors such as e-commerce and speciality finance, whereas large caps show signs of margin pressure despite pockets of strength.

Small and micro caps offer selective opportunities but require careful risk assessment given their volatility. Realty and capital markets sectors are showing encouraging signs of recovery, with companies like Shraddha Prime Projects Ltd delivering standout performances.

For investors, the key takeaway is to adopt a discerning approach, favouring companies with strong fundamentals, sustainable profitability, and sectoral tailwinds. Monitoring upcoming earnings and macroeconomic developments will be crucial to capitalising on emerging trends in this evolving market environment.

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