Overall Results Trend and Market Cap Analysis

The latest quarter saw 234 stocks announce their financial results, with the proportion of companies reporting positive outcomes climbing to 56.0%, up from 42.0% in September 2025 and 40.0% in June 2025. This upward trajectory suggests a gradual stabilisation in corporate earnings after a period of subdued growth and volatility.

Breaking down the results by market capitalisation reveals a divergence in performance. Mid-cap stocks led the charge with 66.0% reporting positive results, followed by small caps at 58.0%. Large caps lagged behind, with only 35.0% of companies posting positive earnings, indicating that smaller and mid-sized companies are currently better positioned to capitalise on emerging growth opportunities.

Sectoral Highlights and Top Performers

Among large caps, Hindustan Zinc, operating in the Non-Ferrous Metals sector, stood out with robust earnings, benefiting from sustained commodity demand and favourable pricing. The mid-cap segment was bolstered by Persistent Systems in the Computers - Software & Consulting sector, which reported strong revenue growth and margin expansion, reflecting continued demand for digital transformation services.

Small caps delivered some of the most impressive results, with Indo Thai Securities from the Capital Markets sector leading overall performance. Other notable small-cap performers included Poonawalla Finance, a Non-Banking Financial Company (NBFC), and Waaree Renewable Energy in the Power sector, both demonstrating strong profit growth and operational resilience.

In-Depth Look: Rajoo Engineers’ Dec-2025 Quarter

Among the 61 results declared in the last 24 hours, Rajoo Engineers Ltd, an industrial manufacturing company with a market cap of ₹1,238.93 crores, delivered a very positive financial performance. The company’s score improved to 28 from 26 over the past three months, signalling enhanced investor confidence.

Rajoo Engineers reported a Profit Before Tax (PBT) excluding other income of ₹18.88 crores, marking a remarkable growth of 96.05% year-on-year. Net sales surged by 56.21% to ₹87.60 crores, while Profit After Tax (PAT) rose 79.1% to ₹16.84 crores. The company also recorded its highest-ever Profit Before Depreciation, Interest and Taxes (PBDIT) at ₹22.27 crores.

Operating profit margin reached a peak of 25.42%, reflecting improved operational efficiency. Earnings per share (EPS) for the quarter stood at ₹0.94, the highest recorded by the company. Additionally, cash and cash equivalents at half-year stood at ₹131.71 crores, underscoring a strong liquidity position.

Upcoming Earnings to Watch

Investors will be closely monitoring results from key companies scheduled to announce on 21 January 2026, including Eternal Ltd, Dr Reddy’s Laboratories Ltd, and KEI Industries Ltd. These companies operate in diverse sectors such as pharmaceuticals and industrial manufacturing, and their results could provide further clarity on sectoral momentum heading into the new calendar year.

Sectoral Earnings Patterns and Market Implications

The earnings season has highlighted a clear pattern of mid and small caps outperforming their larger counterparts. This trend may be attributed to the agility of smaller companies in adapting to changing market conditions and capitalising on niche opportunities. Conversely, large caps appear to be facing headwinds from global macroeconomic uncertainties and margin pressures.

Within sectors, technology and financial services have shown resilience, with software consulting firms and NBFCs posting solid growth. Meanwhile, commodity-linked sectors such as non-ferrous metals have benefited from stable pricing, though concerns around input costs and regulatory changes remain.

Aggregate Profit Growth and Market Outlook

Aggregate profit growth for the quarter has been encouraging, driven largely by mid and small cap companies. The improvement in positive result proportions from 40.0% in June 2025 to 56.0% in December 2025 suggests a gradual earnings recovery, which could support broader market stability.

However, the relatively low positive result rate among large caps at 35.0% indicates that investors should remain selective, focusing on companies with strong fundamentals and clear growth catalysts. The mixed earnings landscape underscores the importance of detailed stock analysis and sectoral awareness in portfolio construction.

Conclusion: Navigating the Earnings Season

The December 2025 quarterly earnings season has delivered a cautiously optimistic picture, with a marked improvement in the proportion of companies reporting positive results. Mid and small caps have emerged as the primary drivers of earnings growth, while large caps continue to face challenges.

Investors are advised to monitor upcoming results closely, particularly from key sectors such as pharmaceuticals, industrial manufacturing, and technology. The evolving earnings trends highlight opportunities for discerning stock selection, with a focus on companies demonstrating operational efficiency, strong cash flows, and sustainable profit growth.

As the market digests these results, the emphasis on quality and growth potential remains paramount, especially in an environment marked by global uncertainties and shifting economic dynamics.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →