Quarterly Results Overview and Trends
The latest quarter saw 48.0% of companies reporting positive results, marking a steady rise from 46.0% in December 2025, 44.0% in September 2025, and 42.0% in June 2025. This incremental improvement over four consecutive quarters suggests a stabilising earnings environment amid ongoing macroeconomic challenges.
Market capitalisation-wise, the distribution of positive results reveals a clear pattern: small caps led with 60.0% positive outcomes, followed by mid caps at 34.0%, and large caps lagging at 20.0%. This divergence highlights the resilience and growth potential of smaller companies, which appear to be capitalising on niche opportunities and operational efficiencies more effectively than their larger peers.
Sectoral Highlights and Top Performers
Among large caps, ICICI AMC emerged as a standout performer within the Capital Markets sector, demonstrating robust earnings growth and operational metrics. Mid-cap companies also showed strength, with HDB Financial Services (NBFC sector) delivering solid results that contributed to the sector’s overall positive momentum.
Small caps dominated the leaderboard, with SG Finserve and Waaree Renewable Energy leading the charge. Both companies belong to the Non-Banking Financial Company (NBFC) and Power sectors respectively, underscoring the diverse drivers of growth within the small-cap universe.
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SG Finserve’s Outstanding Quarterly Performance
SG Finserve Ltd., a small-cap NBFC, has delivered an exceptional quarter ending March 2026, reinforcing its bullish stance since 10 April 2026 when the stock moved from mildly bullish to bullish at Rs 460.00. The company’s financial score improved from 29 to 32 over the past three months, reflecting strong operational execution.
Key financial highlights include net sales of Rs 105.41 crores, a remarkable growth of 94.88% year-on-year, and profit before tax excluding other income (PBT less OI) at Rs 55.96 crores, up 80.11%. Both figures represent all-time highs for the company. Operating profit to net sales ratio also reached a peak of 93.99%, indicating excellent cost management and margin expansion.
Profit after tax (PAT) surged 77.7% to Rs 42.27 crores, with earnings per share (EPS) hitting Rs 6.48, the highest recorded. Additionally, cash and cash equivalents stood at Rs 204.11 crores, underscoring a strong liquidity position. These metrics collectively signal robust growth and operational strength, positioning SG Finserve as a key beneficiary of the current NBFC sector tailwinds.
Sectoral Patterns and Market Implications
The NBFC sector continues to be a focal point for investors, with both mid and small caps showing significant earnings acceleration. HDB Financial Services, a mid-cap NBFC, also contributed positively to the sector’s momentum, reflecting improving credit demand and asset quality trends.
In contrast, large-cap companies have faced more subdued earnings growth, with only 20.0% reporting positive results. This may be attributed to their greater exposure to cyclical sectors and global economic uncertainties. However, select large caps like ICICI AMC have bucked the trend, benefiting from favourable market conditions in capital markets and asset management.
Upcoming Earnings to Watch
Investor attention now turns to heavyweight banks scheduled to announce results on 18 April 2026, including ICICI Bank Ltd., HDFC Bank Ltd., and Yes Bank Ltd. These results will be critical in shaping market sentiment given their substantial weight in indices and their role as economic barometers.
Market participants will be keen to analyse loan growth, asset quality, net interest margins, and fee income trends from these banks to gauge the broader financial sector health and credit cycle trajectory.
Outlook and Investor Takeaways
The gradual improvement in the proportion of positive quarterly results over the past year suggests a stabilising earnings environment, with small and mid caps leading the recovery. Investors may consider increasing exposure to high-quality small caps demonstrating strong earnings momentum and operational leverage, as exemplified by SG Finserve and Waaree Renewable Energy.
Meanwhile, selective large caps with resilient business models and sectoral tailwinds, such as ICICI AMC, remain attractive for risk-averse portfolios. The upcoming bank earnings will provide further clarity on the financial sector’s trajectory and could act as a catalyst for broader market movements.
Overall, the earnings season underscores the importance of a diversified approach, balancing growth-oriented small and mid caps with stable large caps to navigate the evolving market landscape effectively.
Key Earnings Season Insights:
- 48.0% of companies reported positive results in Mar-2026 quarter, up from 42.0% in Jun-2025.
- Small caps led with 60.0% positive results, mid caps at 34.0%, large caps at 20.0%.
- SG Finserve (small cap NBFC) posted record net sales of Rs 105.41 crores and PAT of Rs 42.27 crores.
- ICICI AMC (large cap Capital Markets) and HDB Financial Services (mid cap NBFC) also delivered strong earnings.
- Upcoming bank results on 18 April 2026 will be critical for sector and market direction.
Conclusion
The March 2026 earnings season has reinforced the growing significance of small and mid-cap companies in driving market performance. Their ability to deliver strong top-line growth and margin expansion contrasts with the more cautious results from large caps. Investors should monitor upcoming bank earnings closely while considering strategic allocations to high-quality small caps with proven earnings momentum to capitalise on the evolving market dynamics.
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