Quarterly Earnings Trends and Positive Surprises

The latest quarter marks a notable improvement in the share of companies delivering positive results, rising to 53.0% from 43.0% in September 2025 and 40.0% in June 2025. This upward trajectory suggests a gradual recovery in corporate profitability after a challenging first half of the fiscal year. However, the March 2025 quarter had a slightly higher positive result proportion at 44.0%, indicating some volatility in earnings momentum.

Sectoral and market cap-wise analysis reveals a divergence in performance. Mid-cap companies led the charge with 59.0% reporting positive results, closely followed by small caps at 55.0%. Large caps lagged considerably, with only 34.0% of firms beating expectations. This disparity highlights the resilience and growth potential in mid and small-cap segments, often driven by niche sectors and emerging business models.

Top Performers Across Market Capitalisation

Among large caps, Piramal Finance stood out with robust earnings, although the sector classification remains unspecified. Mid-cap leader Laurus Labs, operating in Pharmaceuticals & Biotechnology, continued to impress with strong operational metrics and sustained profitability, reflecting the sector’s defensive qualities amid macroeconomic uncertainties.

In the small-cap space, Indo Thai Securities, a player in Capital Markets, delivered top-tier results, benefiting from increased market activity and improved brokerage revenues. Micro-cap companies also showcased remarkable performances, with String Metaverse (Paper, Forest & Jute Products) and Sera Investments (Non-Banking Financial Company) posting standout earnings, underscoring the diversity of growth pockets in the broader market.

Raymond Realty Ltd: A Case Study in Exceptional Growth

Among the 37 companies that declared results in the last 24 hours, Raymond Realty Ltd delivered an impressive set of numbers. The company reported net sales of ₹757.55 crores for the quarter, marking a staggering 136.7% growth compared to its previous four-quarter average. This surge in top-line was accompanied by record operating profit before depreciation, interest and tax (PBDIT) of ₹91.45 crores.

Raymond Realty’s operating profit to interest ratio reached a peak of 5.31 times, indicating strong operational efficiency and comfortable debt servicing capacity. Profit before tax less other income (PBT less OI) soared by 309.5% to ₹68.78 crores, while net profit after tax (PAT) grew by 225.4% to ₹66.79 crores, both all-time highs for the company. These metrics reflect a robust turnaround and effective cost management, positioning Raymond Realty favourably for future quarters.

Sectoral Insights and Market Cap Performance

The pharmaceutical and biotechnology sector, led by mid-cap Laurus Labs, continues to demonstrate resilience amid global supply chain challenges and regulatory scrutiny. The sector’s ability to sustain earnings growth is a positive signal for defensive investors seeking stability.

Capital markets firms like Indo Thai Securities have capitalised on increased market volatility and trading volumes, translating into higher brokerage and fee income. This trend is particularly encouraging for small and micro-cap financial services companies, which have shown strong earnings momentum.

Conversely, large-cap companies have faced headwinds, with only a third reporting positive results. This may reflect the impact of inflationary pressures, rising input costs, and cautious consumer spending on established conglomerates and industrial firms.

Upcoming Results to Watch

Investors should keep an eye on key upcoming quarterly results scheduled for 28 January 2026, including Bharat Electronics Ltd, Larsen & Toubro Ltd, and TVS Motor Company Ltd. These companies represent significant sectors such as defence electronics, infrastructure, and automotive, and their earnings will provide further clarity on the broader economic recovery and sectoral trends.

Aggregate Profit Growth and Market Outlook

The aggregate profit growth for the December quarter is encouraging, driven primarily by mid and small-cap companies. The improvement in positive earnings surprises from 40.0% in June to 53.0% in December suggests that corporate India is gradually regaining momentum. However, the subdued performance of large caps indicates that challenges remain, particularly in sectors sensitive to global economic conditions and commodity price fluctuations.

For investors, the current earnings season underscores the importance of selective stock picking, favouring companies with strong fundamentals, efficient cost structures, and growth visibility. Mid and small-cap segments offer attractive opportunities, but with higher volatility and risk. Large caps, while slower to recover, may provide stability and dividend income in a cautious market environment.

Conclusion

The December 2025 quarterly results season paints a picture of cautious optimism. With over half of the companies reporting positive earnings surprises, the market is witnessing a gradual improvement in corporate profitability. Mid and small caps are leading this recovery, supported by sectors such as pharmaceuticals, capital markets, and select financial services. Large caps remain challenged but are expected to benefit from upcoming quarters as economic conditions stabilise.

Investors should monitor upcoming results from marquee companies and maintain a balanced portfolio approach, leveraging insights from detailed earnings analysis to navigate the evolving market landscape in 2026.

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