Quarterly Results Overview and Positive Trends

Out of the 63 companies that declared their March 2026 quarter results, 53.0% reported positive outcomes, marking a notable improvement compared to the previous three quarters. This represents a steady upward trajectory from 42.0% in June 2025, 44.0% in September 2025, and 46.0% in December 2025. The rising proportion of companies beating expectations signals a gradual strengthening of corporate earnings momentum as the fiscal year closes.

Breaking down the results by market capitalisation reveals a clear divergence in performance. Mid cap companies led the charge with 60.0% delivering positive results, closely followed by small caps at 58.0%. In contrast, large caps lagged behind, with only 38.0% reporting positive earnings. This disparity underscores the resilience and growth potential of mid and small cap segments amid a challenging macroeconomic environment.

Sectoral Highlights: Banking and Power Lead the Pack

The banking sector, particularly private sector banks, has been a standout performer this quarter. ICICI Bank, a large cap heavyweight, delivered one of the top results among large caps, demonstrating improved asset quality and steady net interest income growth. Meanwhile, Yes Bank, a mid cap private sector bank, posted a very strong quarter, with a 44.7% year-on-year increase in profit after tax (PAT) to ₹1,068.42 crores. The bank also reported its lowest gross non-performing assets (NPA) at 1.30% and net NPA at 0.20%, reflecting significant balance sheet repair and operational efficiency.

Yes Bank’s net interest income (NII) reached a record ₹2,637.70 crores, while interest earned surged to ₹7,650.90 crores. Despite a negative PBDIT and operating profit to net sales ratio, these figures represent a marked improvement from previous quarters, contributing to a positive revision in the bank’s outlook and a mild shift from bearish to mildly bearish sentiment as of 15 April 2026.

Small Cap Stars: Waaree Renewables and Others

Among small caps, Waaree Renewables emerged as a top performer in the power sector, showcasing strong operational metrics and growth prospects amid rising demand for renewable energy. Other notable small cap performers include SG Finserve in the non-banking financial company (NBFC) sector and Bajaj Consumer in the fast-moving consumer goods (FMCG) space. These companies have demonstrated robust earnings growth and resilience, reinforcing the attractiveness of small caps for investors seeking alpha in a volatile market.

Aggregate Profit Growth and Earnings Quality

The aggregate profit growth across the 63 companies reflects a cautiously optimistic environment. Mid and small caps have driven much of the earnings expansion, supported by sectoral tailwinds in banking, power, and consumer goods. Large caps, while showing pockets of strength such as ICICI Bank, continue to face headwinds from global economic uncertainties and inflationary pressures.

Quality of earnings has also improved, as evidenced by declining NPAs in the banking sector and higher operating efficiencies. Yes Bank’s quarter is a case in point, with its EPS rising to ₹0.34 and operating profit metrics improving despite some negative PBDIT figures. This suggests that operational challenges are being addressed, setting the stage for sustainable profitability in coming quarters.

Recent Developments and Upcoming Results

In the last 24 hours, seven companies declared results, with Yes Bank’s performance standing out for its very positive financial indicators. The bank’s score improved from 15 to 20 over the past three months, reflecting enhanced investor confidence and operational turnaround.

Looking ahead, investors will be closely watching the results of Billionbrains Garage Ventures Ltd, Bank of Maharashtra, and Ugro Capital Ltd, all scheduled to report on 20 April 2026. These upcoming disclosures will provide further clarity on sectoral trends and earnings momentum as the market digests the current quarter’s outcomes.

Market Capitalisation and Earnings Sentiment

The divergence in earnings sentiment across market capitalisation tiers is a key takeaway from this quarter. Mid and small caps have outperformed large caps in terms of positive results, with 60.0% and 58.0% respectively, compared to 38.0% for large caps. This pattern suggests that investors may find more compelling opportunities in the mid and small cap space, where earnings growth and operational improvements are more pronounced.

Large caps, while still dominant in market influence, are navigating a more complex environment with mixed earnings results. Select large cap banks like ICICI Bank have shown resilience, but broader sectoral challenges remain. This underscores the importance of selective stock picking and sectoral analysis in the current market cycle.

Conclusion: Earnings Season Signals Gradual Recovery

The March 2026 quarterly earnings season paints a picture of gradual recovery and selective strength across the Indian equity market. Mid and small cap companies are leading the charge with higher proportions of positive results and robust profit growth, particularly in banking, power, and consumer sectors. Large caps are showing signs of stabilisation but remain vulnerable to external headwinds.

Investors should consider the evolving earnings landscape, focusing on companies with improving fundamentals, quality earnings, and sectoral tailwinds. The demonstrated improvement in asset quality and profitability metrics in private sector banks like Yes Bank and ICICI Bank offers a glimpse of the potential for sustained earnings growth in the financial sector.

As the market awaits the next wave of results from key players scheduled for later this week, the current data supports a cautiously optimistic outlook for corporate India’s earnings trajectory in the near term.

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