Overall Results Landscape and Quarterly Trends

The latest quarter saw 46.0% of companies reporting positive earnings, a slight uptick from 44.0% in September 2025 and 41.0% in June 2025, though still marginally below the 47.0% recorded in March 2025. This oscillation suggests a tentative recovery phase, with companies grappling with inflationary pressures and supply chain disruptions while benefiting from stabilising demand in certain sectors.

Profit growth remains uneven, with aggregate net profits showing pockets of robust expansion contrasted by subdued or declining earnings in capital-intensive industries. The earnings momentum is particularly evident in mid-cap stocks, which posted a 53.0% positive result ratio, outperforming large caps at 43.0% and small caps at 45.0%. This divergence highlights the resilience of mid-sized firms, often more agile and focused on niche markets.

Market Capitalisation Segments: Winners and Laggards

Among large caps, Muthoot Finance stood out with a strong quarterly performance in the Non-Banking Financial Company (NBFC) sector, benefiting from improved loan book quality and steady disbursement growth. The company’s earnings beat consensus estimates, driven by a 12.5% rise in net interest income and a 7.8% reduction in credit costs, signalling enhanced asset quality.

Mid-cap stocks were led by FSN E-Commerce, which reported robust revenue growth in the E-Retail sector, supported by expanding customer acquisition and higher average order values. The company’s net profit surged by 38.2% year-on-year, reflecting operational leverage and improved cost efficiencies.

In the small-cap space, Quality Power El from the Heavy Electrical Equipment sector delivered a commendable quarter, with a 25.4% increase in net profit driven by strong order inflows and better realisation prices. This performance underscores the ongoing demand recovery in infrastructure-related segments.

Micro and Small Cap Highlights

The micro-cap segment witnessed notable performances from Jindal Poly Inve and Trescon, both operating in the NBFC and Realty sectors respectively. Jindal Poly Inve reported a 32.7% increase in quarterly PAT, buoyed by improved collections and lower provisioning. Trescon’s results reflected a turnaround with a 28.9% rise in net profit, supported by project completions and better sales traction.

Additionally, Indo Thai Securities in the Capital Markets sector posted a strong quarter with a 22.1% increase in net profit, driven by higher brokerage income and increased market volatility benefiting trading volumes.

Sectoral Performance and Earnings Drivers

The NBFC sector continues to demonstrate resilience, with multiple companies reporting improved asset quality and stable loan growth. This trend is encouraging given the sector’s historical vulnerability to economic cycles. Meanwhile, the E-Retail and Heavy Electrical Equipment sectors have benefited from structural demand shifts and government infrastructure initiatives, respectively.

Conversely, capital-intensive sectors such as Petrochemicals and Realty remain under pressure due to raw material cost inflation and subdued demand. However, selective companies within these sectors have managed to post positive earnings surprises through cost rationalisation and operational efficiencies.

Recent Notable Results: Rain Industries Ltd

Among the six companies that declared results in the last 24 hours, Rain Industries Ltd, a key player in the Petrochemicals industry with a market cap of ₹4,999.78 crores, reported a bullish quarter. The company’s PAT for December 2025 stood at ₹13.51 crores, marking an impressive 140.8% growth compared to the previous four-quarter average. Despite this strong performance, Rain Industries’ overall score declined from 17 to 11 over the past three months, reflecting some caution among analysts regarding sustainability of earnings momentum.

Rain Industries was upgraded from Mildly Bullish to Bullish on 17 February 2026 at a price of ₹150.00, signalling renewed investor confidence in its turnaround strategy and improving market conditions.

Upcoming Earnings to Watch

Investors will be closely monitoring the results of Fractal Analytics Ltd, scheduled for release on 5 March 2026. As a key player in the analytics and data services sector, its performance will provide insights into demand trends in technology-driven industries and the broader digital transformation theme.

Implications for Investors

The December quarter earnings season underscores the importance of selective stock picking, with mid-cap companies offering relatively better earnings visibility and growth prospects. Large caps, while more stable, are showing signs of cautious optimism, particularly in financial services. Small and micro caps remain volatile but present opportunities in niche sectors with strong fundamentals.

Sectoral differentiation remains critical, with investors advised to favour companies demonstrating operational resilience, prudent cost management, and sustainable earnings growth. The mixed results also highlight the need for a balanced portfolio approach to navigate ongoing macroeconomic uncertainties.

Conclusion

The Dec-2025 quarterly results reveal a market in transition, with incremental improvement in earnings quality and growth tempered by sector-specific challenges. Mid-cap stocks continue to outperform in terms of positive results, while large caps and small caps show mixed outcomes. Investors should remain vigilant, focusing on companies with strong fundamentals and clear growth trajectories as the economy navigates evolving headwinds.

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