Overall Results and Positive Trends

The proportion of companies reporting positive results in the December quarter stood at 46.0%, marking a slight improvement from 44.0% in September 2025 and 41.0% in June 2025, though still marginally below the 47.0% recorded in March 2025. This indicates a cautious but steady recovery in corporate earnings momentum as businesses adapt to evolving economic conditions.

Breaking down by market capitalisation, mid-cap companies led the pack with 53.0% reporting positive results, outperforming both small caps at 45.0% and large caps at 43.0%. This trend suggests that mid-sized firms are currently better positioned to capitalise on growth opportunities, possibly due to greater operational agility and sectoral exposure.

Sectoral Highlights and Top Performers

Among large caps, Muthoot Finance emerged as a standout performer within the Non-Banking Financial Company (NBFC) sector, demonstrating robust earnings growth driven by sustained demand for gold-backed lending products. The company’s ability to maintain asset quality amid tightening credit conditions has been a key factor in its positive results.

In the mid-cap segment, FSN E-Commerce delivered impressive results, reflecting the continued expansion of digital retail and consumer adoption of online platforms. The company’s revenue growth and margin improvement underscore the sector’s resilience despite competitive pressures and logistical challenges.

Among small caps, Ashiana Housing in the realty sector reported encouraging earnings, benefiting from increased housing demand and favourable government policies supporting affordable housing initiatives. This performance aligns with broader sectoral recovery trends observed in real estate.

Micro Cap Leaders and Emerging Stories

Micro cap stocks also featured prominently among top performers, with Jindal Poly Inve (NBFC sector) and Trescon (realty sector) delivering notable earnings beats. Additionally, Indo Thai Securities in the capital markets sector stood out among small caps, reflecting increased market activity and investor participation during the quarter.

Recent Earnings Spotlight: Schaeffler India Ltd.

In the last 24 hours, Schaeffler India Ltd., a key player in the auto components and equipment industry, reported its December 2025 quarter results, signalling a mild bullish shift in market sentiment. The company recorded its highest-ever quarterly net sales at ₹2,724.20 crores, with PBDIT reaching ₹484.12 crores and PBT less other income at ₹390.49 crores.

Profit after tax (PAT) surged 21.0% compared to the previous four-quarter average, reaching ₹322.36 crores. Earnings per share (EPS) also hit a record high of ₹20.62. This strong financial performance has improved Schaeffler India’s score from 9 to 18 over the past three months, reflecting enhanced operational efficiency and demand recovery in the automotive sector.

Quarterly Earnings Trends and Market Implications

The gradual improvement in the proportion of positive results over the last four quarters suggests a stabilising earnings environment, albeit with pockets of volatility. The mid-cap segment’s outperformance is particularly noteworthy, as it may indicate a rotation of investor interest towards companies with higher growth potential and less market saturation.

Large caps, while delivering steady results, continue to face headwinds from global economic uncertainties and sector-specific challenges such as commodity price fluctuations and regulatory changes. However, companies like Muthoot Finance demonstrate that selective exposure to resilient sectors can yield favourable outcomes.

Small and micro caps remain a mixed bag, with some companies posting strong earnings growth while others struggle with margin pressures and demand fluctuations. This heterogeneity underscores the importance of rigorous stock selection and sectoral analysis for investors targeting these segments.

Upcoming Earnings to Watch

Market participants will closely monitor the results of companies such as Vesuvius India Ltd. and John Cockerill India Ltd. scheduled for 26 February 2026, followed by Rain Industries Ltd. on 27 February 2026. These reports are expected to provide further clarity on sectoral trends and corporate resilience heading into the new fiscal year.

Investor Takeaways

Given the mixed earnings landscape, investors are advised to maintain a balanced portfolio approach, favouring companies with strong fundamentals, consistent earnings growth, and sectoral tailwinds. Mid-cap stocks currently offer attractive opportunities, but due diligence remains critical to navigate volatility.

Additionally, the recent performance of Schaeffler India Ltd. highlights the potential for quality companies in cyclical sectors to deliver robust returns as economic conditions improve. Monitoring earnings revisions and quality scores can aid in identifying such opportunities.

Conclusion

The December 2025 quarterly earnings season paints a picture of cautious optimism, with incremental improvements in positive results and profit growth across market caps. While challenges persist, particularly for large and small caps, mid-cap companies and select micro caps continue to demonstrate resilience and growth potential. Investors should remain vigilant, leveraging detailed earnings analysis to capitalise on emerging trends and mitigate risks in the evolving market environment.

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