Quarterly Earnings Landscape: A Gradual Improvement

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. This marks a steady, albeit cautious, recovery trajectory following a slight dip in March 2025 when 47.0% of firms posted positive earnings. The incremental rise suggests that companies are navigating macroeconomic headwinds with varying degrees of success, reflecting sector-specific dynamics and operational resilience.

Market Capitalisation Breakdown: Mid Caps Lead the Charge

Analysing results by market cap reveals that mid-cap companies outperformed their large- and small-cap counterparts, with 52.0% reporting positive earnings. Large caps lagged with 43.0% positive results, while small caps stood at 45.0%. This outperformance by mid caps may be attributed to their agility in adapting to market conditions and capitalising on niche growth opportunities, particularly in sectors like e-commerce and NBFCs.

Sectoral Highlights: NBFCs and Realty Shine

Among large caps, Muthoot Finance emerged as a standout performer in the Non-Banking Financial Company (NBFC) sector, delivering robust earnings that contributed to the sector’s overall resilience. In the mid-cap space, FSN E-Commerce demonstrated strong growth momentum, reflecting the sustained consumer shift towards digital retail platforms. Small caps saw notable performances from Mahindra Life in realty, while micro caps like Trescon (realty) and Jindal Poly Inve (NBFC) posted impressive results, signalling pockets of strength in specialised segments.

Financial Performance Nuances: Impex Ferro Tech’s Flat Quarter

Among the latest five companies reporting in the last 24 hours, Impex Ferro Tech Ltd, a ferrous metals player with a market cap of ₹15.56 crores, posted a flat financial performance for the December 2025 quarter. The company’s sentiment improved mildly from Bearish to Mildly Bearish on 12 February 2026, with its score rising from 3 to 4 over the past three months. Key metrics showed the highest quarterly PBDIT at ₹-0.14 crore, PBT less other income at ₹-1.81 crore, and PAT at ₹-1.81 crore, with EPS at ₹-0.21. While these figures remain negative, the marginal improvement in operational profitability suggests cautious optimism for a turnaround.

Upcoming Earnings to Watch

Investors should keep an eye on the forthcoming results from notable companies such as ABB India Ltd and CIE Automotive India Ltd scheduled for 19 February 2026, followed by RRP Defense Ltd on 20 February 2026. These results will provide further clarity on sectoral trends and the broader market outlook heading into the new fiscal quarter.

Aggregate Profit Growth and Market Implications

The aggregate profit growth for the December quarter remains subdued, reflecting ongoing challenges such as inflationary pressures, supply chain disruptions, and cautious consumer spending. However, the steady increase in the proportion of companies reporting positive earnings, especially among mid caps, indicates a gradual stabilisation. Large caps, often more exposed to global economic factors, continue to face headwinds, while small caps show mixed results, highlighting the importance of selective stock picking.

Investor Takeaways and Strategic Considerations

For investors, the current earnings season underscores the need to focus on quality companies with resilient business models and sectoral tailwinds. Mid-cap firms, particularly in NBFC and e-commerce sectors, are demonstrating momentum and could offer attractive risk-reward profiles. Conversely, caution is warranted in segments where earnings remain under pressure, such as certain ferrous metals and commodity-linked industries.

Overall, the December 2025 quarter results reflect a market in transition, balancing recovery prospects against persistent uncertainties. Active monitoring of earnings trends and sectoral shifts will be crucial for informed portfolio management in the coming months.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →