Quarterly Earnings Trend: A Gradual Upswing

The latest quarter saw a significant uptick in the proportion of companies reporting positive results, rising to 53.0% from 46.0% in December 2025, 44.0% in September 2025, and 42.0% in June 2025. This consistent improvement over four quarters signals a broad-based recovery in corporate earnings, driven by easing macroeconomic pressures and improved demand conditions.

Large cap companies, however, lagged behind with only 38.0% posting positive results, compared to 60.0% of mid caps and 58.0% of small caps. This divergence suggests that smaller companies are currently benefiting from niche growth opportunities and operational agility, while larger firms face more complex challenges amid global uncertainties.

Sectoral and Market Cap Highlights

Among large caps, ICICI Bank stood out as a top performer in the private sector banking space, demonstrating resilience despite sector-wide headwinds. The bank’s results reflected steady net interest income growth and controlled asset quality metrics, underpinning investor confidence.

Mid cap stocks were led by Yes Bank, which delivered a very positive financial performance for the quarter. The bank’s profit after tax (PAT) surged by 44.7% to ₹1,068.42 crores, supported by its highest-ever net interest income (NII) of ₹2,637.70 crores and interest earned of ₹7,650.90 crores. Notably, Yes Bank’s gross non-performing assets (NPA) ratio improved to a low 1.30%, with net NPA at 0.20%, reflecting strong asset quality management. The bank’s earnings per share (EPS) also reached a quarterly high of ₹0.34. These robust metrics contributed to an upgrade in market sentiment, with the stock turning mildly bearish from a previously bearish stance on 15 April 2026 at ₹19.36.

Small Cap Stars: Power and Financial Services Shine

Small cap companies continued to impress, with Waaree Renewable Energy emerging as the top performer in the power sector. The company’s operational efficiencies and expanding project pipeline have bolstered investor optimism. Alongside Waaree, SG Finserve in the non-banking financial company (NBFC) sector and Bajaj Consumer in FMCG also delivered standout results, highlighting the diversity of growth drivers within the small cap universe.

Financial Metrics and Quality Assessment

The aggregate profit growth across the 63 companies was buoyed by strong operational performance and margin expansion in key sectors. Mid and small caps demonstrated superior earnings momentum, with many companies reporting record quarterly profits and improved return ratios. This trend is indicative of a favourable earnings environment for investors seeking alpha beyond the large cap space.

However, the large cap segment’s subdued positive result ratio of 38.0% suggests caution, as these companies continue to navigate inflationary pressures, supply chain disruptions, and geopolitical uncertainties. Investors should weigh these factors carefully when considering portfolio allocations.

Recent Developments and Upcoming Results

In the last 24 hours, seven companies declared results, with Yes Bank Ltd. leading the pack in terms of financial performance and market impact. The bank’s improved financial health and positive earnings trajectory have been well received by the market.

Looking ahead, investors should monitor upcoming results from Billionbrains Garage Ventures Ltd, Bank of Maharashtra, and Ugro Capital Ltd scheduled for 20 April 2026. These announcements will provide further clarity on sectoral trends and earnings sustainability.

Investor Takeaways

The March 2026 earnings season underscores the growing importance of mid and small cap stocks in driving market returns. With over 50% of companies reporting positive results, the earnings landscape is improving, albeit unevenly across market capitalisations. Investors are advised to focus on companies with strong balance sheets, improving asset quality, and sustainable profit growth.

Sectoral leaders such as ICICI Bank, Yes Bank, and Waaree Renewable Energy exemplify the potential for robust earnings growth amid challenging macroeconomic conditions. Their performance highlights the value of selective stock picking and thematic investing in the current market environment.

Conclusion

The quarterly results for March 2026 reveal a cautiously optimistic earnings outlook, with mid and small caps outperforming large caps in terms of positive results and profit growth. This trend reflects a dynamic market environment where nimble companies are capitalising on emerging opportunities. Investors should continue to monitor earnings updates closely, balancing growth prospects with risk management to optimise portfolio performance.

Limited Period Only. Get Started for only Rs. 16,999 - Get MojoOne for 2 Years + 1 Year Absolutely FREE! (72% Off) Get 72% Off →