Overall Earnings Trend and Positive Result Proportions

The proportion of companies reporting positive results in the December 2025 quarter stood at 46.0%, marking a slight improvement from 44.0% in September 2025 and 41.0% in June 2025. However, this remains marginally below the 47.0% recorded in March 2025, indicating a somewhat uneven recovery in corporate profitability. The gradual uptick suggests cautious optimism among companies, with many still grappling with inflationary pressures and supply chain disruptions.

Market Capitalisation Breakdown: Mid Caps Lead the Charge

When segmented by market capitalisation, mid-cap stocks outperformed their large- and small-cap counterparts in terms of positive earnings results. Specifically, 53.0% of mid-cap companies reported positive results, compared to 45.0% for small caps and 43.0% for large caps. This divergence highlights the resilience and growth potential of mid-sized firms, which often benefit from greater operational agility and niche market positioning.

Top Performers Across Market Caps

Among large caps, Muthoot Finance emerged as a notable outperformer within the Non-Banking Financial Company (NBFC) sector, delivering robust earnings growth and margin expansion despite a challenging credit environment. Mid-cap leader FSN E-Commerce demonstrated strong revenue acceleration in the E-Retail sector, capitalising on rising digital penetration and consumer demand. In the small-cap space, Quality Power El from the Heavy Electrical Equipment sector posted impressive quarterly gains, driven by order inflows and operational efficiencies.

Micro Cap and Small Cap Highlights

Micro-cap stocks also featured prominently among top results, with Jindal Poly Inve (NBFC sector) and Trescon (Realty sector) delivering exceptional earnings growth. Additionally, Indo Thai Securities from the Capital Markets sector stood out in the small-cap category, reflecting strong brokerage and investment banking activity amid volatile market conditions.

John Cockerill India Ltd: A Case Study in Strong Quarterly Performance

Among recent declarations, John Cockerill India Ltd, an industrial manufacturing company with a market cap of ₹2,469.89 crores, reported a very positive financial performance for the December 2025 quarter. The company’s profit before tax less other income (PBT LESS OI) surged by an extraordinary 600.3% compared to its previous four-quarter average, reaching ₹6.88 crores. Net sales rose 24.5% to ₹102.07 crores, marking the highest quarterly sales in its history. Profit after tax (PAT) also soared by 462.0% to ₹11.83 crores, the highest recorded for the company.

John Cockerill’s cash and cash equivalents at half-year stood at ₹226.50 crores, the highest level to date, underscoring strong liquidity and financial health. The stock’s mild bullish stance since early February 2026 reflects investor confidence in its operational momentum and growth prospects.

Sectoral Patterns and Earnings Drivers

The NBFC sector continues to be a focal point, with companies like Muthoot Finance and Jindal Poly Inve demonstrating resilience amid tightening credit conditions. Their ability to manage asset quality and maintain steady loan growth has been pivotal. Meanwhile, the E-Retail sector, led by FSN E-Commerce, benefits from sustained consumer demand and digital adoption, driving revenue and margin expansion.

Heavy Electrical Equipment and Capital Markets sectors have also shown pockets of strength, supported by infrastructure investments and heightened market activity respectively. However, the overall market environment remains cautious, with inflationary pressures and geopolitical uncertainties tempering broader optimism.

Quarterly Earnings Outlook and Upcoming Results

Looking ahead, investors will closely monitor upcoming results from companies such as BF Utilities Ltd, scheduled to report on 28 February 2026, and Fractal Analytics Ltd on 5 March 2026. These results will provide further clarity on sectoral momentum and corporate earnings sustainability as the fiscal year progresses.

Implications for Investors

The December 2025 earnings season underscores the importance of selective stock picking, with mid-cap and certain small-cap companies offering attractive growth opportunities. Large caps, while more stable, face ongoing challenges that may limit upside in the near term. Investors should weigh sectoral dynamics, company-specific fundamentals and macroeconomic factors when positioning portfolios.

Overall, the earnings landscape suggests a cautiously optimistic market environment, where quality and growth orientation remain key to navigating volatility and capitalising on emerging trends.

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