Quarterly Earnings Overview and Trends
The latest quarter saw a dip in the proportion of companies delivering positive results, with just 40.0% of the 37 stocks declaring earnings beating or meeting expectations. This is a notable decrease from the 46.0% positive results recorded in December 2025 and continues a downward trend from 44.0% in September 2025 and 42.0% in June 2025. The data suggests a cautious earnings environment amid ongoing macroeconomic uncertainties and sector-specific headwinds.
Market capitalisation-wise, the divergence in performance is stark. Large-cap stocks posted a mere 20.0% positive result rate, reflecting challenges faced by established blue-chip companies in sustaining growth momentum. Mid-cap stocks fared better, with 34.0% reporting favourable earnings, while small caps led the pack with an impressive 50.0% positive result ratio. This trend underscores the resilience and growth potential of smaller companies, particularly in niche sectors.
Sectoral Highlights: NBFCs Dominate
The Non-Banking Financial Company (NBFC) sector emerged as a clear outperformer this quarter. SG Finserve, a small-cap NBFC, delivered the top overall result, showcasing exceptional financial metrics that underscore its robust operational performance. The company reported net sales of ₹105.41 crores, marking a staggering 94.88% year-on-year growth. Profit before tax (excluding other income) surged by 80.11% to ₹55.96 crores, while profit after tax reached a record ₹42.27 crores, up 77.7% compared to the previous year.
SG Finserve’s operating profit margin relative to net sales hit an all-time high of 93.99%, reflecting strong cost control and operational efficiency. Earnings per share (EPS) also reached a peak of ₹6.48 for the quarter, signalling enhanced shareholder value. The company’s financial score improved from 29 to 34 over the past three months, prompting a bullish upgrade from mildly bullish on 10 April 2026 at ₹460.00 per share.
Mid-cap NBFC HDB Financial Services also delivered a strong performance, consolidating the sector’s positive momentum. Meanwhile, ICICI AMC led the large-cap segment with commendable results in the capital markets sector, though the overall large-cap positive result ratio remained subdued.
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Market Capitalisation Impact on Earnings Outcomes
The disparity in earnings outcomes across market capitalisation tiers highlights the challenges and opportunities facing different segments of the market. Large caps, often burdened by scale and legacy issues, struggled to maintain growth, with only one in five companies reporting positive results. This contrasts sharply with small caps, where half of the companies declared positive earnings, driven by agile business models and sectoral tailwinds.
Mid caps occupy a middle ground, showing resilience but still facing headwinds that limit broader upside. The strong showing by mid and small caps, particularly in the NBFC sector, suggests investors may find more attractive growth opportunities outside the large-cap universe in the near term.
Recent Earnings Activity and Upcoming Announcements
In the last 24 hours alone, 17 companies declared results, with SG Finserve’s outstanding performance capturing market attention. The company’s robust quarter has set a high bar for peers in the NBFC space and contributed significantly to the sector’s positive sentiment.
Looking ahead, investors will closely monitor upcoming results from key players such as Jio Financial Services Ltd, Mastek Ltd, and Hathway Cable & Datacom Ltd, all scheduled to announce on 17 April 2026. These results will provide further clarity on sectoral trends and earnings momentum heading into the next quarter.
Implications for Investors and Market Outlook
The current earnings season underscores the importance of selective stock picking, with sectoral and market cap nuances playing a critical role in performance outcomes. The NBFC sector’s strong showing, led by companies like SG Finserve and HDB Financial Services, highlights the potential for sustained growth in financial services outside traditional banking.
Conversely, the subdued performance of large caps suggests investors should exercise caution and focus on companies demonstrating clear earnings visibility and operational improvements. The divergence between large and small caps also signals a potential rotation opportunity for portfolios seeking alpha in a challenging macroeconomic environment.
Key Takeaways:
- Only 40.0% of stocks reported positive results in Mar-2026, down from 46.0% in Dec-2025.
- Small caps led with 50.0% positive results, while large caps lagged at 20.0%.
- NBFC sector, particularly SG Finserve, delivered standout earnings growth and margins.
- Upcoming results from Jio Financial Services, Mastek, and Hathway Cable will be closely watched.
- Investors advised to focus on sectoral leaders and growth-oriented mid and small caps.
Conclusion
The March 2026 earnings season paints a nuanced picture of India’s equity markets, with clear winners and laggards across sectors and market capitalisations. While large caps face growth pressures, mid and small caps, especially in the NBFC space, continue to demonstrate robust earnings expansion and operational excellence. Investors should remain vigilant, leveraging detailed earnings analysis to identify opportunities amid a complex market backdrop.
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