Quarterly Earnings Overview and Trends

As of 05 Feb 2026, a total of 1,422 companies have declared their results for the December 2025 quarter. The proportion of companies reporting positive earnings has steadily increased over the last four quarters, rising from 40.0% in June 2025 to 48.0% in December 2025. This upward trend suggests improving corporate profitability and resilience despite ongoing macroeconomic challenges.

Sectoral and market capitalisation-wise analysis reveals a divergence in performance. Large-cap companies reported a positive results ratio of 36.0%, lagging behind mid-caps at 54.0% and small caps at 48.0%. This indicates that mid-sized companies are currently better positioned to capitalise on growth opportunities, possibly due to greater agility and sectoral exposure.

Large Cap Highlights: TVS Motor Co. Leads Automobiles Sector

Among large caps, TVS Motor Co. has delivered one of the strongest performances in the automobile sector. While detailed financials are yet to be fully disclosed, the company’s results have been well received by the market, reflecting robust demand and operational efficiencies. However, the overall large-cap segment remains cautious, with only just over a third of companies reporting positive earnings, signalling some headwinds in heavyweight sectors such as banking and energy.

Mid Cap Momentum: FSN E-Commerce Ventures’ Stellar Quarter

Mid-cap stocks have been the primary drivers of earnings growth this quarter, with FSN E-Commerce Ventures Ltd. standing out as a top performer. The company reported net sales of ₹2,873.26 crores, marking a 30.2% increase compared to its previous four-quarter average. Operating profit margins also improved, with operating profit to net sales reaching 8.00%, the highest recorded for the company.

FSN’s profit before tax (PBT) excluding other income surged by 214.2% to ₹119.72 crores, while profit after tax (PAT) rose 180.3% to ₹73.42 crores. The company’s earnings per share (EPS) for the quarter hit a record ₹0.22. Additionally, FSN’s operating profit to interest ratio stood at a robust 7.88 times, underscoring strong operational cash flow and debt servicing capability. The debtors turnover ratio also improved significantly to 34.12 times, reflecting efficient receivables management.

Small Cap and Micro Cap Performers

Small-cap companies have delivered a mixed bag of results, with 48.0% reporting positive earnings. Notable performers include Cupid from the FMCG sector and Mahindra Life in realty, both registering strong quarterly numbers. Cupid’s robust performance reflects sustained consumer demand and effective cost management, while Mahindra Life’s results indicate improving real estate market conditions.

Micro-cap stocks have also produced some remarkable results, with String Metaverse from the Paper, Forest & Jute Products sector topping the charts. These smaller companies often exhibit greater volatility but can offer significant upside potential when sectoral tailwinds align.

Sectoral Patterns and Profit Growth Drivers

The e-retail and e-commerce sector continues to be a bright spot, led by FSN E-Commerce’s outstanding quarter. The sector benefits from increasing digital penetration and consumer shift towards online shopping. Operating efficiencies and scale advantages have translated into improved margins and profitability for leading players.

Conversely, traditional sectors such as automobiles and realty show signs of recovery but remain sensitive to input cost pressures and regulatory changes. The mixed results in large caps suggest that cyclical sectors are still navigating a challenging environment, with inflationary concerns and global uncertainties weighing on investor sentiment.

Aggregate Profit Growth and Market Implications

The aggregate profit growth for the December quarter is encouraging, driven primarily by mid-cap companies that have demonstrated strong operational execution and revenue expansion. The improvement in positive result proportions from 42.0% in September 2025 to 48.0% in December 2025 signals a gradual earnings recovery across the market.

Investors should note the divergence in performance by market capitalisation, with mid-caps offering more compelling growth prospects relative to large caps. This trend may influence portfolio allocation strategies in the near term, favouring companies with scalable business models and sectoral tailwinds.

Upcoming Earnings to Watch

Market participants will closely monitor the results of key companies scheduled to report shortly, including Shree Cement Ltd., Siemens Ltd., and Tata Steel Ltd. Their performance will provide further clarity on sectoral momentum and broader economic trends heading into the new fiscal quarter.

Conclusion

The December 2025 earnings season underscores a cautiously optimistic outlook for Indian equities. While large caps face headwinds, mid and small caps are driving profit growth with strong operational metrics and revenue gains. The improving trend in positive results and robust performances from select sectors such as e-commerce and FMCG provide a foundation for sustained market confidence. Investors should remain selective, focusing on companies with demonstrated earnings quality and growth visibility as the market navigates evolving macroeconomic conditions.

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