Overall Earnings Trend

The proportion of companies reporting positive results has risen consistently over the past year. For the March 2026 quarter, 53.0% of companies declared positive earnings, up from 46.0% in December 2025, 44.0% in September 2025, and 41.0% in June 2025. This upward trajectory reflects improving business conditions and operational efficiencies across sectors.

Such a trend is encouraging for investors seeking signs of sustainable earnings growth amid a challenging macroeconomic backdrop. The gradual increase in positive results suggests that companies are adapting well to evolving market dynamics and cost pressures.

Market Capitalisation Breakdown

Analysing results by market cap reveals that mid-cap companies are outperforming their large- and small-cap peers in terms of positive earnings. Mid caps reported a 60.0% positive result ratio, significantly higher than large caps at 48.0% and small caps at 52.0%. This outperformance highlights the agility and growth potential of mid-sized firms, which often benefit from niche market positions and operational flexibility.

Large caps, while showing improvement, continue to face headwinds from global economic uncertainties and sector-specific challenges. Small caps, despite a moderate positive result ratio, have delivered some standout performances, particularly in the realty and specialty chemicals sectors.

Sectoral Highlights and Top Performers

Among large caps, Muthoot Finance from the Non-Banking Financial Company (NBFC) sector delivered the strongest results, reflecting robust loan growth and stable asset quality. The NBFC sector continues to benefit from increased credit demand and improving collections, supporting margin expansion.

In the mid-cap space, Multi Commodity Exchange (Multi Comm. Exc.) stood out with impressive earnings, driven by higher trading volumes and increased market participation. The capital markets sector is witnessing renewed investor interest, which is translating into better profitability for exchanges and brokerage firms.

Small caps also produced notable results, with Puravankara in the realty sector leading the pack. The real estate sector’s recovery is gaining traction, supported by improving sales and easing regulatory bottlenecks. Additionally, Navin Fluorine International from specialty chemicals and Shraddha Prime (a micro cap in realty) posted strong earnings, underscoring sectoral pockets of strength.

Recent Quarterly Standouts

In the last 24 hours, Shakti Press Ltd., a small-sized company in the miscellaneous industry, reported a very positive quarter for March 2026. The company’s financial score improved markedly from 11 to 23 over the past three months, signalling a turnaround in performance. Key highlights include net sales of ₹73.97 crores, representing an extraordinary growth of 896.90% year-on-year, and a highest-ever quarterly PAT of ₹0.91 crore.

Shakti Press also recorded its highest PBDIT at ₹1.51 crore and PBT less other income at ₹1.00 crore. The EPS for the quarter stood at ₹1.81, while the debtors turnover ratio improved to 3.08 times, indicating better working capital management. The stock turned mildly bullish on 30 June 2026 at ₹23.74, reflecting market optimism about its financial trajectory.

Upcoming Earnings to Watch

Investors should keep an eye on upcoming results from key companies such as Supreme Infrastructure India Ltd (due 04 July 2026), Sukhjit Starch & Chemicals Ltd (07 July 2026), and the heavyweight Tata Consultancy Services Ltd. (09 July 2026). These results will provide further clarity on sectoral trends and corporate earnings momentum heading into the second half of the calendar year.

Implications for Investors

The improving earnings landscape, particularly the rising proportion of positive results, suggests a cautiously optimistic outlook for equity markets. Mid caps appear to be the primary beneficiaries of this trend, offering attractive growth opportunities relative to their large- and small-cap counterparts.

However, investors should remain selective, focusing on companies with strong fundamentals, sustainable earnings growth, and improving operational metrics. The standout performers in NBFCs, capital markets, and realty sectors highlight areas where earnings quality is improving, potentially offering favourable risk-reward profiles.

Overall, the March 2026 earnings season reinforces the importance of a diversified portfolio approach that balances exposure across market caps and sectors to capitalise on emerging trends.

Conclusion

The March quarter results demonstrate a broad-based improvement in corporate earnings, with more than half of the companies reporting positive outcomes. Mid-cap companies are leading this charge, supported by strong sectoral performances in NBFCs, capital markets, and realty. While large caps show signs of recovery, challenges remain, necessitating a discerning investment approach. The recent surge in small-cap earnings, exemplified by companies like Shakti Press Ltd., further underscores the evolving opportunities in the market.

As the earnings season progresses, investors should monitor upcoming results closely to gauge the sustainability of this positive momentum and adjust their strategies accordingly.

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