Overall Earnings Trends and Market Cap Analysis

The latest quarter saw 46.0% of companies delivering positive earnings, 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 incremental rise suggests a tentative recovery in corporate profitability amid ongoing macroeconomic challenges.

Breaking down by market capitalisation, mid-cap companies led the pack with 52.0% reporting positive results, outperforming both large caps at 43.0% and small caps at 45.0%. This outperformance by mid caps may reflect their greater agility and exposure to growth sectors, whereas large caps continue to face headwinds from global economic uncertainties and sectoral pressures.

Sectoral Highlights and Top Performers

Among large caps, Muthoot Finance emerged as a notable performer within the Non-Banking Financial Company (NBFC) sector, demonstrating resilience in a challenging credit environment. Its ability to sustain earnings growth amid tightening liquidity conditions underscores the strength of its business model and prudent risk management.

Mid-cap results were led by FSN E-Commerce, a key player in the E-Retail sector, which continues to capitalise on the expanding digital consumption trend. The company’s robust revenue growth and improving margins have bolstered investor confidence, positioning it favourably in a competitive landscape.

In the small-cap universe, Cupid from the FMCG sector stood out with consistent earnings growth, benefiting from strong brand equity and expanding distribution channels. This performance highlights the enduring demand for consumer staples even amid economic fluctuations.

Micro Cap and Other Noteworthy Results

Micro-cap stocks also delivered impressive results, with Jindal Poly Inve (NBFC sector) and Trescon (Realty sector) topping the charts. Their earnings beats reflect niche market positioning and operational efficiencies that have helped mitigate sectoral volatility. Additionally, Indo Thai Securities from the Capital Markets sector posted strong results, benefiting from increased market activity and improved brokerage revenues.

Recent Developments: Impex Ferro Tech Ltd’s Flat Performance

In the last 24 hours, only three companies declared results, with Impex Ferro Tech Ltd from the Ferrous Metals industry reporting a flat financial performance for the December 2025 quarter. The company’s score improved marginally from 3 to 4 over the past three months, signalling a mild shift from bearish to mildly bearish sentiment as of 12 February 2026, with the stock priced at Rs 1.80.

Key financial metrics for Impex Ferro Tech include a PBDIT of Rs -0.14 crore, PBT less other income at Rs -1.81 crore, and a PAT of Rs -1.81 crore, all representing the highest levels recorded in recent quarters despite remaining in negative territory. The EPS stood at Rs -0.21, reflecting ongoing challenges in profitability. This flat performance underscores the cautious outlook for the ferrous metals sector amid fluctuating commodity prices and demand uncertainties.

Upcoming Earnings to Watch

Investors should keep an eye on the forthcoming results from RRP Defense Ltd scheduled for 20 February 2026, followed by BF Utilities Ltd and PVP Ventures Ltd both set to announce on 23 February 2026. These companies operate in sectors that have shown mixed earnings momentum, and their upcoming disclosures could provide further clarity on sectoral trends heading into the new fiscal year.

Implications for Investors and Market Outlook

The December quarter earnings season paints a picture of cautious optimism. While the overall proportion of companies reporting positive results has improved slightly, the sub-50% positive result rate indicates that many firms continue to grapple with margin pressures, input cost inflation, and subdued demand in certain sectors.

Mid-cap companies’ relative outperformance suggests that investors may find better opportunities in this segment, where growth prospects remain more robust. Large caps, despite their scale and stability, face headwinds from global economic uncertainties and sector-specific challenges, particularly in capital-intensive industries.

Sectoral leaders such as Muthoot Finance, FSN E-Commerce, and Cupid demonstrate that companies with strong business models, market positioning, and operational discipline can still deliver solid earnings growth. Conversely, flat or negative results from firms like Impex Ferro Tech highlight the uneven recovery across industries.

Going forward, investors should focus on companies with resilient fundamentals, sustainable earnings growth, and prudent capital management. Monitoring upcoming results from key sectors will be crucial to gauge the broader economic recovery and identify pockets of strength in the market.

Summary

The Dec-2025 earnings season confirms a market in transition, with incremental improvements in profitability but persistent challenges across sectors and market caps. Mid caps continue to shine, while large and small caps show mixed results. Select companies in NBFC, E-Retail, FMCG, and Capital Markets sectors have delivered standout performances, offering potential investment opportunities amid a cautious macroeconomic backdrop.

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