Overall Earnings Trends and Positive Result Proportions

The latest quarter saw 46.0% of companies reporting 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 oscillation suggests a cautious optimism among corporates amid ongoing macroeconomic challenges and sector-specific headwinds. The incremental rise in positive results indicates some stabilisation but also highlights the uneven nature of recovery across industries.

Market Capitalisation Breakdown: Divergent Performances

Analysing results by market cap reveals a distinct pattern. Mid-cap companies led the pack with 52.0% reporting positive earnings, outperforming both small caps at 45.0% and large caps at 43.0%. This outperformance by mid-caps may reflect their agility in adapting to market conditions and capitalising on niche growth opportunities. Conversely, large caps, despite their scale and resources, continue to face pressures from global economic uncertainties and sectoral disruptions.

Sectoral Highlights: Standout Performers and Challenges

Among large caps, Muthoot Finance emerged as a top performer within the Non-Banking Financial Company (NBFC) sector, demonstrating resilience amid tightening credit conditions. Its robust asset quality and steady loan growth contributed to a solid quarter, reinforcing investor confidence in the NBFC space.

Mid-cap results were led by FSN E-Commerce, a key player in the E-Retail sector, which reported strong revenue growth driven by expanding consumer demand and improved logistics efficiencies. This performance underscores the continued structural shift towards digital commerce in India.

In the small-cap segment, Ashiana Housing stood out in the Realty sector, benefiting from renewed buyer interest and easing regulatory bottlenecks. The company’s focus on affordable housing projects has positioned it well to capture demand in a recovering real estate market.

Micro Cap Leaders and Emerging Trends

Micro-cap stocks also delivered notable results, with Jindal Poly Inve (NBFC sector) and Trescon (Realty sector) posting strong earnings, reflecting niche market leadership and operational efficiencies. Additionally, Indo Thai Securities in the Capital Markets sector demonstrated robust growth, benefiting from increased market activity and investor participation.

Recent Developments: PVP Ventures Ltd’s Flat Performance

In the last 24 hours, only two companies declared results, with PVP Ventures Ltd from the Realty sector reporting a sideways shift from a mildly bullish stance as of 24 February 2026. The stock closed at Rs 27.56, reflecting flat financial performance for the December 2025 quarter. Notably, the company’s score deteriorated from -1 to -3 over the past three months, signalling investor caution.

Despite this, PVP Ventures posted a remarkable 448.59% growth in net sales (half-yearly) to Rs 31.05 crores, alongside an operating profit margin to net sales ratio peaking at 35.74%. These metrics suggest operational efficiencies and revenue expansion, though market sentiment remains subdued, possibly due to broader sectoral concerns or valuation pressures.

Upcoming Earnings to Watch

Investors should keep an eye on the forthcoming results from key companies scheduled for 25 February 2026, including Sanofi India Ltd, KSB Ltd, and Foseco India Ltd. These companies operate in diverse sectors such as pharmaceuticals, industrial pumps, and speciality chemicals, respectively, and their performance will provide further insights into sectoral momentum heading into the new fiscal year.

Sectoral and Market Implications

The aggregate earnings data from this quarter reinforce the ongoing divergence in corporate fortunes. Mid-cap companies’ relative strength suggests that investors may find better growth prospects in this segment, especially in sectors like e-commerce and speciality finance. Large caps, while stable, face headwinds from global economic uncertainties and domestic policy shifts, necessitating selective stock picking.

Small and micro caps continue to offer pockets of opportunity, particularly in realty and NBFC sectors, but investors should remain vigilant about volatility and liquidity risks inherent in these segments. The mixed results also highlight the importance of granular analysis beyond headline earnings beats or misses, focusing on quality of earnings, margin trends, and cash flow generation.

Conclusion: Navigating a Mixed Earnings Landscape

The December 2025 quarter earnings season paints a picture of cautious recovery with clear sectoral and market cap-based disparities. While the overall proportion of positive results has improved marginally, the underlying data calls for a discerning approach to portfolio construction. Investors are advised to prioritise companies with strong fundamentals, sustainable margin expansion, and resilient business models amid a complex macroeconomic backdrop.

As the market digests these results, attention will increasingly turn to upcoming earnings announcements and macroeconomic indicators that will shape corporate profitability in the coming quarters.

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