Quarterly Results Overview and Trends

The latest quarter has seen a marked improvement in the proportion of companies reporting positive earnings, rising steadily over the past year. From a low of 41.0% in June 2025, the positive results ratio climbed to 44.0% in September, 46.0% in December, and now 57.0% in March 2026. This upward trajectory suggests a broad-based recovery in corporate earnings momentum, supported by improving economic conditions and sectoral rebounds.

However, the distribution of positive results varies significantly by market capitalisation. Mid-cap companies led the charge with an impressive 80.0% reporting positive earnings, signalling robust growth and operational resilience in this segment. Small caps also performed well, with 55.0% positive results, indicating selective strength among emerging and niche players. In contrast, large caps lagged behind, with only 39.0% of companies posting positive results, reflecting ongoing headwinds in some heavyweight sectors.

Sectoral and Market Cap Highlights

Among large caps, Nestle India stood out with strong earnings in the FMCG sector, benefiting from steady consumer demand and margin expansion. The company’s performance underscores the defensive nature of FMCG stocks amid broader market volatility.

Mid-cap results were led by Bank of Maharashtra, a public sector bank that reported solid quarterly earnings driven by improved asset quality and higher net interest margins. This performance highlights the gradual recovery in the banking sector, particularly among regional lenders.

In the small-cap space, Navkar Corporation from the transport services sector emerged as a top performer, reflecting increased freight volumes and operational efficiencies. Other notable small-cap performers included Waaree Renewable in the power sector and SG Finserve, a non-banking financial company (NBFC), both demonstrating strong quarter-on-quarter growth and improving profitability metrics.

Spotlight on Recent Earnings: Sangam (India) Ltd

Among the 14 companies that declared results in the last 24 hours, Sangam (India) Ltd, a garments and apparels company with a market cap of ₹2,711.56 crores, delivered an exceptionally strong quarter. The company’s financial performance for March 2026 was very positive, with its score improving from 20 to 28 over the past three months, signalling a bullish outlook.

Sangam India’s profit before tax less other income (PBT LESS OI) surged by 217.5% compared to its previous four-quarter average, reaching ₹50.36 crores. Net profit after tax (PAT) also doubled, growing 112.0% to ₹34.08 crores. Operating profit to interest ratio hit a high of 3.78 times, reflecting improved operational efficiency and lower financial costs.

The company recorded its highest net sales at ₹883.92 crores and PBDIT at ₹101.78 crores for the quarter. Operating profit as a percentage of net sales reached 11.51%, the best in recent quarters. Earnings per share (EPS) stood at ₹6.54, and cash and cash equivalents at half-year end were at a peak of ₹65.80 crores, indicating strong liquidity.

Aggregate Profit Growth and Market Implications

The aggregate profit growth across the 103 companies reporting this quarter reflects a cautiously optimistic market environment. The strong showing by mid and small caps suggests that investors may find attractive opportunities in these segments, where earnings momentum is more pronounced. Conversely, the subdued performance of large caps indicates that some sectors, particularly those with higher exposure to global uncertainties or commodity price pressures, remain under strain.

Investors should note the divergence in results by market cap and sector, which underscores the importance of selective stock picking. Companies with strong operational metrics, improving margins, and robust cash flows are likely to outperform in the near term.

Upcoming Earnings to Watch

Looking ahead, key results expected on 24 April 2026 include heavyweight names such as Hindustan Zinc Ltd, Reliance Industries Ltd, and Shriram Finance Ltd. These companies’ performances will be closely analysed for further indications of sectoral trends and broader market direction.

Conclusion

The March 2026 quarter earnings season has delivered encouraging signs of recovery, particularly among mid and small caps, with a rising proportion of companies reporting positive results. While large caps continue to face challenges, pockets of strength in FMCG, banking, transport services, and renewable energy sectors provide a balanced outlook. Investors are advised to focus on companies demonstrating consistent earnings growth, strong profitability ratios, and healthy cash positions as the market navigates ongoing economic uncertainties.

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