Overview of Quarterly Earnings Trends

The latest quarter saw 46.0% of companies reporting positive results, a modest improvement from 44.0% in September 2025 and 42.0% in June 2025, though slightly below the 47.0% recorded in March 2025. This oscillation suggests a cautious recovery in corporate profitability amid ongoing macroeconomic challenges and sector-specific headwinds.

Market capitalisation-wise, mid-cap stocks led the pack with 52.0% positive results, outperforming both large caps at 43.0% and small caps at 45.0%. This indicates that mid-sized companies are currently better positioned to navigate the prevailing economic environment, possibly due to greater agility and sectoral exposure.

Sectoral and Market Cap Highlights

Among large caps, Muthoot Finance stood out with robust earnings, reinforcing the strength of the Non-Banking Financial Company (NBFC) sector. The company’s performance reflects sustained demand for credit and effective risk management despite tightening regulatory conditions.

Mid-cap leaders included FSN E-Commerce, which demonstrated strong growth in the E-Retail sector, benefiting from increased consumer adoption of digital platforms and festive season sales. This sector continues to be a key driver of mid-cap earnings growth.

In the small-cap universe, Cupid from the FMCG sector delivered impressive results, underscoring the resilience of consumer staples amid inflationary pressures. The company’s ability to maintain volume growth and manage input costs contributed to its standout quarter.

Top Performers Across Market Segments

Micro-cap stocks also featured prominently among top performers. Jindal Poly Inve (NBFC) and Trescon (Realty) posted exceptional results, signalling pockets of strength in niche sectors. Additionally, Indo Thai Securities from the Capital Markets sector emerged as a small-cap leader, benefiting from increased market activity and brokerage volumes.

In-Depth Look: Shraddha Prime Projects Ltd’s Outstanding Quarter

Among recent declarations, Shraddha Prime Projects Ltd, a Realty sector small-cap with a market size of ₹719 crores, delivered an outstanding performance for the December 2025 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 Shraddha Prime include net sales of ₹129.01 crores, marking an 81.1% growth compared to the previous four-quarter average. Profit before tax excluding 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 their highest quarterly levels at ₹20.17 crores and ₹20.24 crores respectively. Earnings per share (EPS) also peaked at ₹3.39, signalling strong shareholder returns.

Aggregate Profit Growth and Market Implications

The aggregate earnings growth across sectors remains mixed but shows signs of stabilisation. The NBFC sector, buoyed by companies like Muthoot Finance and Jindal Poly Inve, continues to demonstrate resilience, supported by improving asset quality and credit demand. Meanwhile, the E-Retail and FMCG sectors are benefiting from sustained consumer spending and digital penetration, as evidenced by FSN E-Commerce and Cupid’s results.

However, the Realty sector’s performance remains uneven, with standout performers like Shraddha Prime Projects contrasting with broader sectoral challenges such as regulatory delays and input cost inflation. Capital Markets firms like Indo Thai Securities are capitalising on heightened market volatility and trading volumes, contributing positively to mid and small-cap earnings.

Upcoming Earnings to Watch

Investors should keep an eye on the forthcoming results from notable companies including ABB India Ltd and CIE Automotive India Ltd scheduled for 19 February 2026, as well as PVP Ventures Ltd on 23 February 2026. These companies operate in sectors that are critical to industrial and automotive supply chains, and their earnings will provide further clarity on economic momentum heading into 2026.

Outlook and Strategic Considerations

While the overall earnings season reflects a cautious optimism, the divergence in performance across market caps and sectors suggests selective stock picking remains essential. Mid-cap companies appear to offer relatively better earnings visibility and growth prospects, whereas large caps are grappling with margin pressures and slower top-line expansion.

Investors should also consider the quality of earnings and balance sheet strength, particularly in sectors exposed to regulatory risks or commodity price fluctuations. The continued strength in NBFCs and consumer-facing sectors offers a degree of defensive positioning amid macroeconomic uncertainties.

Conclusion

The December 2025 quarterly results season underscores a market in transition, with pockets of robust growth counterbalanced by ongoing challenges. The incremental rise in positive earnings outcomes to 46.0% is encouraging, yet the path ahead demands careful analysis of sectoral dynamics and company fundamentals. As the market digests these results, strategic allocation towards mid-cap growth stories and resilient large-cap franchises may offer the best risk-adjusted opportunities.

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