Quarterly Earnings Trends and Positive Result Proportions

The proportion of companies reporting positive results in the December 2025 quarter rose to 47.0%, up from 44.0% in September and 42.0% in June, signalling a gradual improvement in corporate profitability. This marks a return to the same level of positive results as seen in March 2025, suggesting a stabilisation in earnings momentum after a period of volatility.

Breaking down by market capitalisation, mid-cap stocks led the charge with 53.0% delivering positive results, outperforming both large caps at 43.0% and small caps at 46.0%. This trend highlights the resilience and growth potential within the mid-cap segment, often seen as a bellwether for economic expansion and sectoral innovation.

Top Performers Across Market Capitalisation Segments

Among large caps, Muthoot Finance stood out in the Non-Banking Financial Company (NBFC) sector, showcasing robust earnings growth and margin expansion. The company’s ability to navigate a challenging credit environment while maintaining asset quality has been a key driver of its strong quarterly performance.

In the mid-cap space, FSN E-Commerce delivered impressive results, reflecting the continued consumer shift towards digital retail channels. The company’s revenue growth and improving operating leverage have contributed to a positive earnings surprise, reinforcing the sector’s growth narrative.

Small caps also produced notable winners, with Quality Power El in the Heavy Electrical Equipment sector leading the pack. The company reported strong order inflows and margin improvement, benefiting from increased infrastructure spending and government initiatives.

Exceptional Quarterly Results: IRB Infrastructure Trust

Among the 690 results declared in the last 24 hours, IRB Infrastructure Trust delivered an outstanding performance for the December 2025 quarter. The company’s net sales surged to ₹4,041.88 crores, representing a remarkable 163.2% growth compared to its previous four-quarter average. Profit before tax excluding other income (PBT less OI) soared by an extraordinary 6,075.8%, reaching ₹2,495.06 crores, while profit after tax (PAT) increased by 6,765.8% to ₹2,459.36 crores.

IRB Infrastructure Trust also posted its highest-ever operating profit to interest ratio at 5.30 times, reflecting strong operational efficiency and prudent financial management. Operating profit to net sales ratio peaked at 80.51%, underscoring the company’s robust margin expansion. Earnings per share (EPS) for the quarter stood at ₹15.74, the highest recorded to date.

This exceptional financial performance has led to an upgrade in the company’s outlook, with its score improving from -4 to 37 over the past three months, signalling a shift from a mildly bullish to a more confident stance among market participants.

Sectoral Patterns and Profit Growth Analysis

The earnings season has highlighted distinct sectoral patterns. Financial services, particularly NBFCs like Muthoot Finance, have demonstrated resilience amid tightening credit conditions. Meanwhile, the e-commerce sector continues to benefit from sustained consumer demand and digital adoption, as evidenced by FSN E-Commerce’s strong results.

Infrastructure and heavy electrical equipment sectors have also shown marked improvement, supported by government spending and infrastructure development initiatives. Quality Power El’s performance exemplifies this trend, with increased order books and margin gains.

Overall, aggregate profit growth across the 3,234 companies reporting has been positive but uneven, with mid-caps driving much of the momentum. Large caps, while posting steady gains, have faced headwinds from global macroeconomic uncertainties and sector-specific challenges.

Upcoming Earnings to Watch

Investors should keep an eye on the upcoming results from key companies such as Embassy Office Parks REIT, Brightcom Group Ltd, and Ahluwalia Contracts (India) Ltd, all scheduled to report on 14 February 2026. These results will provide further insight into the real estate, digital media, and construction sectors respectively, and could influence broader market sentiment.

Outlook and Investor Takeaways

The December 2025 quarter earnings season reflects a cautiously optimistic outlook for Indian equities. The gradual increase in positive results, particularly among mid-cap companies, suggests improving corporate health and earnings quality. However, investors should remain vigilant to sector-specific risks and global economic uncertainties that could temper growth prospects.

Companies demonstrating strong operational metrics, margin expansion, and robust cash flows are likely to remain in favour. The standout performances of IRB Infrastructure Trust and other sector leaders highlight the importance of selective stock picking based on fundamental strength and growth potential.

As the market digests these results, a balanced approach favouring quality mid-caps and resilient large caps may offer the best risk-adjusted returns in the near term.

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