Quarterly Results Overview and Positive Result Proportions

The proportion of companies reporting positive results in the December 2025 quarter stood at 46.0%, marking a slight improvement from 44.0% in September 2025 and 41.0% in June 2025. However, this is marginally lower than the 47.0% positive results recorded in March 2025, indicating some volatility in quarterly earnings momentum. The gradual uptick over the last three quarters suggests cautious optimism among corporates amid a complex macroeconomic backdrop.

Breaking down by market capitalisation, mid-cap stocks led the pack with 53.0% reporting positive results, outperforming both large caps at 43.0% and small caps at 45.0%. This trend highlights the relative resilience and growth potential of mid-sized companies, which often benefit from agility and niche market positioning. Large caps, despite their scale and resources, continue to face headwinds from global uncertainties and sector-specific pressures.

Sectoral and Market Cap Highlights

Among large caps, Muthoot Finance emerged as a top performer within the Non-Banking Financial Company (NBFC) sector, demonstrating robust credit growth and asset quality improvements. Its steady earnings trajectory reflects the sector’s gradual recovery from earlier stress periods, supported by improving consumer demand and stable interest rate conditions.

In the mid-cap space, FSN E-Commerce stood out in the E-Retail sector, reporting strong revenue growth driven by expanding customer base and higher order volumes. The company’s ability to scale operations efficiently amid competitive pressures underscores the growing importance of digital commerce in India’s consumption story.

Among small caps, Quality Power El in the Heavy Electrical Equipment sector delivered encouraging results, benefiting from increased infrastructure spending and government initiatives to boost power generation capacity. This sectoral tailwind is expected to sustain growth momentum in coming quarters.

Top Performers Across Market Caps

Micro-cap stocks also featured prominently among top results, with Jindal Poly Inve (NBFC sector) and Trescon (Realty sector) posting impressive earnings growth. Their performance highlights the potential for select micro-cap companies to deliver outsized returns despite broader market volatility. Additionally, Indo Thai Securities in the Capital Markets sector emerged as a notable small-cap performer, reflecting increased investor participation and trading volumes.

In-Depth Look: John Cockerill India Ltd’s Exceptional Quarter

Among recent declarations, John Cockerill India Ltd, an industrial manufacturing company with a market cap of ₹2,513.35 crores, delivered a very positive financial performance for the December 2025 quarter. The company’s profit before tax excluding other income (PBT LESS OI) surged by an extraordinary 600.3% compared to its previous four-quarter average, reaching ₹6.88 crores. Net profit after tax (PAT) also soared by 462.0% to ₹11.83 crores, marking the highest quarterly PAT in its recent history.

Net sales climbed 24.5% to ₹102.07 crores, the highest quarterly sales figure recorded by the company. Additionally, cash and cash equivalents at half-year stood at a robust ₹226.50 crores, underscoring strong liquidity and financial health. John Cockerill’s mild bullish stance since early February 2026 reflects investor confidence in its operational turnaround and growth prospects.

Aggregate Profit Growth and Market Implications

The aggregate profit growth across the 4,094 stocks declaring results indicates a cautious but positive earnings environment. While the overall positive result ratio remains below 50%, the steady improvement over recent quarters suggests that companies are gradually adapting to inflationary pressures, supply chain disruptions, and geopolitical uncertainties. The mid-cap segment’s outperformance is particularly noteworthy, signalling opportunities for investors seeking growth beyond the large-cap stalwarts.

Sectoral patterns reveal that financial services, industrial manufacturing, and technology-driven sectors continue to drive earnings growth, whereas commodity-linked and export-oriented sectors face mixed outcomes due to fluctuating global demand and currency volatility. Investors should weigh these sectoral dynamics carefully when constructing portfolios for the near term.

Upcoming Earnings to Watch

Looking ahead, key results expected include BF Utilities Ltd on 28 February 2026 and Fractal Analytics Ltd on 5 March 2026. These companies operate in sectors that have shown resilience and innovation, and their forthcoming results will provide further clarity on earnings sustainability and market sentiment heading into the new fiscal year.

Conclusion: Navigating a Mixed Earnings Landscape

The December 2025 quarterly earnings season paints a nuanced picture of India’s corporate health. While the proportion of companies reporting positive results has improved modestly, the sub-50% figure indicates ongoing challenges. Mid-cap companies continue to shine, offering attractive growth prospects, while large caps remain under pressure from macroeconomic headwinds. Select small and micro-cap stocks demonstrate potential for significant gains, though investors should exercise caution given inherent volatility.

Overall, the earnings season underscores the importance of selective stock picking, sectoral awareness, and a balanced approach to portfolio construction. Companies with strong fundamentals, robust cash flows, and clear growth strategies are likely to outperform in the evolving market environment.

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