Overview of Quarterly Earnings Trends

As of 24 February 2026, a total of 4,081 stocks have declared their results for the December 2025 quarter. The proportion of companies reporting positive earnings has risen to 46.0%, a marginal improvement from 44.0% in the September 2025 quarter and 42.0% in June 2025. However, this figure remains below the 47.0% positive results recorded in March 2025, indicating a somewhat uneven recovery trajectory.

This gradual uptick in positive earnings suggests that while some companies are navigating the challenging macroeconomic environment effectively, others continue to face headwinds, particularly in sectors sensitive to inflationary pressures and supply chain disruptions.

Market Capitalisation Segmentation: Divergent Outcomes

Breaking down the results by market capitalisation reveals a distinct pattern. Mid-cap companies have outperformed their large and small-cap counterparts, with 52.0% reporting positive earnings. This contrasts with 43.0% of large-cap and 45.0% of small-cap companies posting favourable results.

The stronger showing among mid-caps may reflect their agility in adapting to market conditions and capitalising on niche opportunities, whereas large caps appear to be grappling with scale-related challenges and global economic uncertainties. Small caps, often more volatile, have delivered mixed outcomes, with pockets of strong performance offset by underwhelming results in certain sectors.

Sectoral Highlights and Top Performers

Among large-cap stocks, Muthoot Finance has emerged as a standout performer within the Non-Banking Financial Company (NBFC) sector. The company’s robust asset quality and steady loan book growth have underpinned its positive earnings surprise, contributing to investor confidence in the NBFC space.

In the mid-cap universe, FSN E-Commerce has delivered impressive results in the E-Retail sector, benefiting from sustained consumer demand and operational efficiencies. Its performance underscores the resilience of digital commerce platforms despite broader economic headwinds.

Within the small-cap segment, Ashiana Housing has led the Realty sector with solid revenue growth and improved margins, reflecting a gradual revival in real estate demand. Additionally, micro-cap companies such as Jindal Poly Inve (NBFC) and Trescon (Realty) have posted noteworthy results, highlighting pockets of strength in niche segments.

Recent Developments: PVP Ventures Ltd’s Flat Performance

In the last 24 hours, only two companies declared results, with PVP Ventures Ltd from the Realty sector reporting a largely flat financial performance for the December 2025 quarter. The company’s net sales for the half-year stood at ₹31.05 crores, reflecting an extraordinary growth rate of 448.59% year-on-year. Despite this surge in sales, the overall score for PVP Ventures has declined to -3 from -1 over the past three months, signalling some investor caution.

Notably, the operating profit to net sales ratio reached a high of 35.74% for the quarter, indicating operational efficiency. However, the market’s mild bearish stance, shifting from sideways to mildly bullish on 23 February 2026 at ₹28.75, suggests that investors are awaiting more consistent earnings momentum before committing further.

Upcoming Earnings to Watch

Looking ahead, several key companies are scheduled to announce their quarterly results on 25 February 2026. These include Sanofi India Ltd, KSB Ltd, and Foseco India Ltd. Market participants will be closely monitoring these releases for indications of sectoral trends and potential catalysts for broader market movements.

Aggregate Profit Growth and Market Implications

While the aggregate profit growth across the declared results remains modest, the incremental improvement in positive earnings proportions is a positive sign for the broader market. The cautious optimism is tempered by the uneven distribution of results across sectors and market capitalisation tiers.

Investors should note that mid-cap stocks continue to offer relatively better earnings visibility and growth prospects, as evidenced by their higher positive result ratio. Conversely, large caps require careful scrutiny given their mixed performance and exposure to global economic factors.

Small and micro-cap stocks, though volatile, present selective opportunities, particularly in sectors such as NBFC and Realty, where companies like Jindal Poly Inve and Trescon have demonstrated resilience.

Strategic Takeaways for Investors

Given the current earnings landscape, a selective approach focusing on mid-cap companies with strong operational metrics and improving earnings quality may be prudent. Additionally, monitoring upcoming results from key players in pharmaceuticals, industrials, and specialty chemicals could provide further clarity on sectoral momentum.

Investors are advised to balance growth prospects with risk management, considering the ongoing macroeconomic uncertainties and the potential for volatility in smaller market segments.

Conclusion

The December 2025 quarterly earnings season paints a picture of gradual recovery with pockets of strength amid persistent challenges. The slight rise in positive earnings proportions and standout performances in mid-cap and select small-cap stocks offer cautious optimism. However, the mixed results across large caps and the flat performance of some companies underscore the need for careful stock selection and ongoing market vigilance.

As the market awaits the next wave of earnings announcements, investors should remain attentive to sectoral shifts and company-specific fundamentals to navigate the evolving investment landscape effectively.

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