Overall Results Trend and Market Cap Analysis

The latest quarter saw a significant uptick in the proportion of companies reporting positive earnings, rising to 54.0% from 46.0% in December 2025. This marks the highest positivity rate in the last four quarters, reflecting an improving earnings cycle. The trend has been steadily upward since June 2025, when only 41.0% of companies posted positive results.

Breaking down by market capitalisation, mid-cap companies led the charge with 62.0% delivering positive results, well ahead of small caps at 54.0% and large caps at 48.0%. This divergence suggests that mid-sized firms are currently better positioned to capitalise on growth opportunities, possibly due to greater operational agility and sectoral exposure.

Sectoral and Stock-Specific Highlights

Among large caps, Muthoot Finance stood out with robust earnings in the Non-Banking Financial Company (NBFC) sector, benefiting from sustained demand for credit and improved asset quality. Mid-cap leader Multi Commodity Exchange (Multi Comm. Exc.) demonstrated strong capital markets activity, reflecting increased trading volumes and investor participation.

In the small-cap space, Puravankara from the realty sector delivered top results, signalling a revival in real estate demand. Other notable small-cap performers included Navin Fluorine International in specialty chemicals and Navkar Corporation in transport services, both sectors benefiting from improving industrial activity and supply chain normalisation.

Exceptional Quarterly Performance: Divgi Torqtransfer Systems Ltd.

Among the 199 companies that declared results in the last 24 hours, Divgi Torqtransfer Systems Ltd., an auto components and equipment manufacturer, delivered an outstanding quarter. The company’s Profit Before Tax excluding Other Income (PBT LESS OI) surged 101.4% to ₹14.03 crores compared to its previous four-quarter average. Net sales rose 41.8% to ₹107.62 crores, marking the highest quarterly sales in its history.

Operating profit margin also improved, with PBDIT reaching ₹21.67 crores and operating profit to net sales ratio hitting a peak of 20.14%. Net profit after tax (PAT) climbed 68.3% to ₹15.48 crores, while earnings per share (EPS) stood at ₹5.06, the highest recorded by the company. These metrics underscore Divgi Torq’s strong operational execution and market demand traction.

Sectoral Earnings Momentum and Outlook

The NBFC sector, represented by companies like Muthoot Finance, continues to benefit from a benign credit environment and improving asset quality, which has translated into better-than-expected earnings. Capital markets firms such as Multi Commodity Exchange have capitalised on heightened market volatility and increased retail participation, driving revenue growth.

Realty and specialty chemicals sectors, traditionally cyclical, are showing signs of recovery. Puravankara’s strong results reflect renewed buyer interest and easing supply constraints, while Navin Fluorine International’s performance is buoyed by rising demand for speciality chemicals in domestic and export markets.

Transport services, exemplified by Navkar Corporation, are benefiting from the gradual normalisation of logistics and freight movement post-pandemic, supporting revenue and margin expansion.

Quarterly Earnings: A Gradual Recovery Narrative

The steady improvement in positive earnings results over the past year suggests a gradual recovery in corporate profitability across sectors. The rise from 41.0% positive results in June 2025 to 54.0% in March 2026 indicates that companies are navigating inflationary pressures and supply chain challenges more effectively.

Large caps, while still trailing mid caps in positivity, have shown pockets of strength in financials and consumer sectors. Mid caps’ outperformance may attract increased investor interest, given their growth potential and improving fundamentals.

Upcoming Earnings to Watch

Investors should keep an eye on upcoming quarterly results from key companies such as Cummins India Ltd., Physicswallah Ltd., and GMR Airports Ltd. scheduled for 27 May 2026. These results will provide further clarity on sectoral trends and earnings momentum heading into the next quarter.

Conclusion: Earnings Season Signals Positive Market Sentiment

The March 2026 earnings season has reinforced a cautiously optimistic outlook for Indian equities. With over half of the companies reporting positive results and mid caps leading the charge, the market appears to be favouring growth-oriented segments. Strong performances in NBFCs, capital markets, realty, specialty chemicals, and transport services highlight the diverse drivers underpinning this recovery.

While challenges remain, including inflationary pressures and global uncertainties, the improving earnings trend provides a solid foundation for investors to reassess portfolio allocations and identify opportunities in mid and small-cap stocks demonstrating robust fundamentals.

Only Rs. 20,999 - Get MojoOne + Stock of the Week for 3 Years Get 71% Off →