Quarterly Earnings Trends and Market Cap Analysis

The latest earnings season saw 46.0% of companies reporting positive results, a modest improvement from 44.0% in the September 2025 quarter and 42.0% in June 2025. However, this remains below the 47.0% positive result rate recorded in March 2025, indicating a somewhat uneven recovery trajectory. The data suggests that while some sectors and market segments are regaining momentum, others continue to face challenges amid macroeconomic uncertainties.

Breaking down by market capitalisation, mid-cap companies led the pack with 52.0% reporting positive earnings, underscoring their resilience and growth potential. Small caps followed with 45.0%, while large caps lagged at 43.0%. This divergence highlights the ongoing rotation within the market, where investors are increasingly favouring mid-sized firms with strong fundamentals and growth visibility over the more established but slower-growing large caps.

Sectoral Standouts and Top Performers

Among large caps, Muthoot Finance emerged as a notable performer within the Non-Banking Financial Company (NBFC) sector, demonstrating robust earnings growth and operational stability. The company’s ability to navigate credit challenges and maintain asset quality has been a key factor in its positive results.

Mid-cap stocks also delivered impressive performances, with FSN E-Commerce standing out in the E-Retail/E-Commerce sector. The company benefited from sustained consumer demand and improved logistics efficiencies, which translated into better-than-expected revenue and margin expansion.

In the small-cap space, Cupid from the FMCG sector recorded strong earnings, driven by product innovation and expanding distribution networks. This performance reflects the sector’s resilience amid inflationary pressures and shifting consumer preferences.

Micro Cap and Other Noteworthy Results

Micro-cap companies also made headlines with some of the top results overall. Jindal Poly Inve (NBFC sector) and Trescon (Realty sector) delivered significant earnings beats, signalling pockets of strength in niche segments. Additionally, Indo Thai Securities from the Capital Markets sector posted encouraging results, benefiting from increased market activity and improved brokerage revenues.

Recent Company Spotlight: Impex Ferro Tech Ltd

Among the latest results declared in the last 24 hours, Impex Ferro Tech Ltd, a ferrous metals company with a market size of ₹15.83 crores, reported a flat financial performance for the December 2025 quarter. The company’s sentiment improved slightly from Bearish to Mildly Bearish on 12 February 2026, with its score rising from 3 to 4 over the past three months.

Key financial metrics for Impex Ferro Tech include a highest quarterly PBDIT of ₹-0.14 crore, PBT less other income at ₹-1.81 crore, and PAT also at ₹-1.81 crore. The EPS for the quarter stood at ₹-0.21, marking the best performance in recent quarters despite remaining in negative territory. These figures reflect ongoing operational challenges in the ferrous metals sector, though the marginal improvement in scores suggests cautious optimism among analysts.

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 due on 23 February 2026. These companies operate in sectors that have shown mixed earnings trends recently, and their results could provide further clarity on sectoral momentum heading into the new fiscal year.

Sectoral Earnings Patterns and Market Implications

The earnings season has underscored the uneven recovery across sectors. NBFCs, particularly in the large and micro-cap segments, have demonstrated resilience, supported by improving asset quality and cautious credit growth. Conversely, sectors such as ferrous metals and realty continue to face headwinds from subdued demand and cost pressures.

Meanwhile, the FMCG and e-commerce sectors have benefited from sustained consumer spending and digital adoption, driving earnings beats in mid and small caps. This divergence suggests that investors may need to adopt a selective approach, favouring companies with strong balance sheets and growth visibility amid a challenging macroeconomic backdrop.

Aggregate Profit Growth and Market Outlook

While the overall proportion of positive results remains below 50%, the gradual improvement quarter-on-quarter signals a tentative recovery in corporate earnings. Mid-cap companies, with their higher positive result ratio and growth momentum, are likely to remain the focus for investors seeking alpha in the near term.

Large caps, despite their slower earnings growth, continue to offer stability and dividend income, making them suitable for risk-averse portfolios. Small caps, with their mixed results, require careful stock selection to capitalise on pockets of strength.

Looking ahead, the market will closely monitor macroeconomic indicators, interest rate movements, and global developments that could impact earnings trajectories. Companies with robust fundamentals and adaptive strategies are expected to navigate these challenges more effectively, offering attractive investment opportunities.

Conclusion

The December 2025 quarterly earnings season paints a complex picture of the Indian equity market. While mid-cap stocks have emerged as clear leaders in profit growth and positive earnings surprises, large and small caps present a more cautious outlook. Sectoral disparities remain pronounced, with NBFCs and consumer-facing companies outperforming, while metals and realty sectors struggle. Investors are advised to focus on quality fundamentals and selective stock picking as the market navigates this transitional phase.

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