Overall Earnings Trend Strengthens
The proportion of companies reporting positive results has risen to 54.0% in the March 2026 quarter, marking a significant improvement from 46.0% in December 2025 and a steady upward trajectory over the past year. This marks the highest positivity ratio in the last four quarters, reflecting broad-based earnings resilience amid ongoing macroeconomic challenges.
Quarterly comparisons reveal a gradual but consistent improvement: from 41.0% positive results in June 2025, to 44.0% in September 2025, then 46.0% in December 2025, culminating in the current 54.0%. This trend suggests that corporate India is navigating inflationary pressures and global uncertainties with increasing operational efficiency and revenue growth.
Market Capitalisation Segments: Mid Caps Outperform
Breaking down results by market capitalisation, mid-cap stocks have emerged as the strongest performers with 59.0% reporting positive earnings, outpacing both small caps at 54.0% and large caps at 47.0%. This outperformance by mid caps indicates a shift in investor focus towards companies with robust growth prospects and nimble business models.
Large caps, while still delivering nearly half positive results, have lagged behind, reflecting the mixed impact of global headwinds on heavyweight sectors such as banking, energy, and IT. Small caps maintain a respectable 54.0% positivity, buoyed by select sectoral leaders.
Sectoral Highlights and Top Performers
Among large caps, Muthoot Finance in the Non-Banking Financial Company (NBFC) sector stood out with strong quarterly performance, benefiting from sustained demand for gold-backed loans and improving asset quality. Its results underscore the resilience of NBFCs amid tightening credit conditions.
In the mid-cap space, Multi Commodity Exchange (Multi Comm. Exc.)
Small caps witnessed notable performances from Puravankara in Realty, Navin Fluorine International in Specialty Chemicals, and Navkar Corporation in Transport Services. These companies demonstrated strong operational execution and sector tailwinds, contributing to their top rankings in the quarter. Quarter after quarter, this Small Cap from the Lifestyle sector delivers without fail! Just added to our Reliable Performers with proven staying power. Stability meets growth here beautifully. Pharmaceuticals & Biotechnology: Ind-Swift Laboratories’ Strong Quarter Among the 238 companies reporting results in the last 24 hours, Ind-Swift Laboratories Ltd. (market cap ₹1,345.79 crores) delivered a very positive financial performance for the March 2026 quarter. The company’s score improved from 26 to 27 over the past three months, reflecting enhanced operational metrics and profitability. Key highlights include a 22.82% growth in net sales to ₹169.79 crores, the highest recorded for the company. Profit before tax (excluding other income) surged 47.13% to ₹14.89 crores, while profit after tax rose 44.1% to ₹20.26 crores, both all-time highs. Operating profit margin also improved, with PBDIT reaching ₹20.58 crores and operating profit to net sales ratio hitting 12.12%, signalling efficient cost management and strong demand for its pharmaceutical products. Upcoming Earnings to Watch Investors should keep an eye on the upcoming results from notable companies such as Patanjali Foods Ltd, Linde India Ltd., and Steelcast Ltd, all scheduled to report on 30 May 2026. These results will provide further clarity on sectoral trends and market sentiment heading into the mid-year period. Implications for Investors The improving earnings landscape, particularly the strong showing from mid-cap and select small-cap stocks, suggests a favourable environment for investors seeking growth opportunities beyond the large-cap space. The steady rise in positive results quarter-on-quarter indicates that companies are adapting well to the evolving economic backdrop, with many demonstrating operational leverage and margin expansion. However, the relatively lower positivity ratio among large caps warrants caution, as heavyweight sectors continue to face headwinds from global economic uncertainties and commodity price fluctuations. Selectivity remains key, with a focus on companies exhibiting consistent earnings quality and sustainable growth. Sectoral leaders in NBFCs, capital markets, specialty chemicals, and realty have emerged as attractive candidates for portfolio inclusion, supported by strong fundamentals and favourable industry dynamics. Conclusion The March 2026 quarterly earnings season paints a picture of gradual but meaningful recovery across Indian equities. With over half of the companies reporting positive results and mid caps leading the charge, the market is signalling renewed investor confidence and improving corporate health. Monitoring upcoming earnings and sectoral developments will be crucial for investors aiming to capitalise on this momentum while managing risks prudently. Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year Start at 33% Off →
