Quarterly Earnings Trends and Market Cap Performance

The December quarter saw a slight uptick in the proportion of companies reporting positive results, rising to 47.0% from 44.0% in September 2025 and 42.0% in June 2025, matching the positivity level last seen in March 2025. This suggests a tentative recovery in corporate profitability after a subdued middle half of the fiscal year.

Breaking down by market capitalisation, mid-cap companies led the charge with 53.0% posting positive earnings, a notable improvement compared to 46.0% for small caps and 43.0% for large caps. The relatively stronger performance of mid caps may reflect their greater agility and exposure to growth sectors, while large caps continue to face margin pressures and global headwinds.

Large-cap results were highlighted by Titan Company, a leader in the Gems, Jewellery and Watches sector, which delivered robust earnings growth driven by sustained consumer demand and operational efficiencies. Mid caps were spearheaded by FSN E-Commerce, which benefited from expanding market share and improving unit economics in the e-retail space. Among small caps, Cupid from the FMCG sector stood out with strong volume growth and margin expansion.

Sectoral Highlights and Top Performers

The earnings season also revealed sectoral disparities. The Gems, Jewellery and Watches sector, led by Titan Company, demonstrated resilience amid inflationary pressures, with Titan reporting steady revenue growth and margin improvement. The e-commerce sector, represented by FSN E-Commerce, continued to capitalise on digital penetration and consumer shifts, posting strong top-line growth and narrowing losses.

In the FMCG space, Cupid’s performance was particularly noteworthy. The company reported significant volume gains and enhanced profitability, reflecting effective brand positioning and cost control. Specialty chemicals also featured prominently, with Navin Fluorine International delivering solid earnings growth driven by export demand and product innovation.

Among micro caps, Trescon from the realty sector emerged as the top overall performer, showcasing strong revenue growth and improving operating metrics despite sectoral challenges. This underscores pockets of opportunity even in traditionally cyclical industries.

Outstanding Individual Company Results: Mobavenue AI Tech Ltd

In the last 24 hours, 323 companies declared results, with Mobavenue AI Tech Ltd standing out for its exceptional quarterly performance. The company’s profit before tax (excluding other income) surged by 96.5% to ₹10.14 crores, while net profit after tax more than doubled, rising 107.4% to ₹7.61 crores. Net sales expanded by 67.2% to ₹55.12 crores, marking the highest quarterly sales in its history.

Mobavenue AI Tech also reported its highest-ever PBDIT of ₹12.25 crores and an operating profit margin of 22.22%, reflecting operational leverage and efficient cost management. The earnings per share (EPS) reached a record ₹5.07, and the debtors turnover ratio improved to 1.28 times, indicating enhanced working capital efficiency. These metrics collectively signal a strong bullish momentum, with the company’s score improving from 16 to 34 over the past three months.

Aggregate Profit Growth and Outlook

While the aggregate profit growth across the 2,547 companies is mixed, the incremental improvement in positive earnings outcomes and the outperformance of mid caps suggest a cautiously optimistic outlook. The earnings season reflects a market in transition, with growth pockets in consumer discretionary, e-commerce, and speciality chemicals offsetting challenges in large-cap dominated sectors.

Investors should note the divergence in results by market cap and sector, which may warrant selective positioning. Companies demonstrating operational resilience, margin expansion and strong cash flow generation are likely to sustain momentum in the near term.

Looking ahead, key upcoming results from Siemens Energy India Ltd, Torrent Pharmaceuticals Ltd, and Ipca Laboratories Ltd on 13 February 2026 will provide further clarity on sectoral trends and earnings sustainability.

Conclusion: Navigating a Mixed Earnings Landscape

The December 2025 quarterly results season has underscored the complexity of the current market environment. While the overall proportion of positive earnings has improved modestly, the leadership of mid caps and select small caps highlights the importance of discerning stock selection. Large caps face ongoing margin pressures, but pockets of strength remain in consumer and speciality sectors.

Investors are advised to focus on companies with demonstrated earnings quality, robust growth prospects and improving operational metrics. The evolving earnings landscape demands a balanced approach, combining sectoral insight with market cap considerations to capitalise on emerging opportunities.

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