Overall Earnings Landscape

As of 16 February 2026, a total of 4,084 companies have declared their quarterly results for the December 2025 period. The proportion of companies reporting positive earnings growth has inched up to 46.0%, compared to 44.0% in the September quarter and 42.0% in June, signalling a gradual recovery in corporate profitability. However, this remains slightly below the 47.0% positive result rate seen in March 2025, indicating ongoing volatility in earnings momentum.

The aggregate trend suggests that while some sectors and market segments are gaining traction, others continue to grapple with margin pressures and subdued demand conditions.

Market Capitalisation Breakdown

Analysing results by market cap reveals a clear divergence in performance. Mid-cap stocks have outperformed their peers, with 52.0% reporting positive earnings growth, a notable improvement over the previous quarters. This segment appears to be benefiting from a combination of nimble business models and sectoral tailwinds, particularly in e-commerce and niche financial services.

Large-cap companies, by contrast, have seen only 43.0% positive results, reflecting the challenges faced by heavyweight sectors such as banking, energy, and industrials amid macroeconomic uncertainties. Small caps reported 45.0% positive results, indicating a mixed bag of outcomes with pockets of strong performance but also several disappointments.

Sectoral and Stock Highlights

Among large caps, Muthoot Finance stood out with robust earnings growth, driven by sustained demand in the non-banking financial company (NBFC) sector. The company’s ability to maintain asset quality and expand its loan book has underpinned its strong quarterly performance.

Mid-cap stocks saw FSN E-Commerce emerge as a top performer, capitalising on the growing digital retail penetration and consumer spending recovery. Its revenue growth and margin expansion have impressed analysts, positioning it favourably in the competitive e-retail landscape.

In the small-cap space, Mahindra Life delivered noteworthy results within the realty sector, benefiting from improved sales velocity and cost optimisation. This performance underscores the gradual revival in real estate demand after a prolonged slowdown.

Micro-Cap Standouts

Micro-cap companies have also made headlines with exceptional quarterly results. Trescon and Jindal Poly Inve, operating in realty and NBFC sectors respectively, posted some of the strongest earnings growth rates, highlighting the potential for high returns in smaller, agile companies despite broader market headwinds.

Recent Developments: Shraddha Prime Projects Ltd

In the last 24 hours, Shraddha Prime Projects Ltd, a realty company with a market size of ₹727.22 crores, reported an outstanding quarter. The company’s financial score improved from 30 to 32 over the past three months, reflecting enhanced operational efficiency and profitability.

Key metrics for the December 2025 quarter include net sales of ₹129.01 crores, marking an impressive 81.1% growth compared to the previous four-quarter average. Profit before tax less other income (PBT less OI) surged by 94.4% to ₹20.24 crores, while profit after tax (PAT) rose 63.7% to ₹13.70 crores. Both PBDIT and PBT less OI reached record highs for the company, at ₹20.17 crores and ₹20.24 crores respectively. Earnings per share (EPS) also hit a peak of ₹3.39, signalling strong shareholder returns.

Quarterly Earnings Trends and Implications

The gradual improvement in the proportion of companies reporting positive earnings growth over the last four quarters suggests a tentative recovery in corporate profitability. However, the pace remains uneven across sectors and market capitalisations, reflecting the complex interplay of inflationary pressures, interest rate dynamics, and demand fluctuations.

Large caps, often more exposed to global economic conditions and regulatory changes, continue to face margin compression and cautious investor sentiment. Mid caps, with their greater agility and exposure to domestic consumption themes, have demonstrated resilience and growth potential. Small and micro caps remain volatile but offer pockets of opportunity for discerning investors.

Upcoming Earnings to Watch

Market participants will be closely monitoring the upcoming results from key companies such as ABB India Ltd and CIE Automotive India Ltd on 19 February 2026, followed by PVP Ventures Ltd on 23 February 2026. These results are expected to provide further clarity on sectoral trends and earnings sustainability heading into the new fiscal year.

Investor Takeaways

For investors, the current earnings season underscores the importance of selective stock picking and sectoral diversification. Mid-cap and select small-cap companies with strong earnings momentum and robust business models are likely to outperform in the near term. Conversely, caution is warranted in large-cap sectors facing structural challenges and margin pressures.

Monitoring quarterly earnings surprises, margin trends, and cash flow generation will be critical to identifying sustainable growth stories amid a complex macroeconomic environment.

Conclusion

The December 2025 quarterly results paint a picture of cautious optimism. While aggregate earnings growth remains modest, the improving trend in mid-cap companies and standout performances in select small and micro caps offer encouraging signs. Investors should remain vigilant, balancing opportunities in turnaround stories with the risks posed by macroeconomic uncertainties and sector-specific headwinds.

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