Overall Earnings Trend and Positive Result Proportions

The proportion of companies reporting positive results in the December quarter stood at 46.0%, marking a slight improvement from 44.0% in September 2025 and 42.0% in June 2025. However, this remains marginally below the 47.0% recorded in March 2025, indicating a somewhat volatile earnings environment over the past year. The incremental rise suggests cautious optimism among corporates, though the pace of improvement is gradual.

Sectoral and market cap segmentation further highlights the uneven nature of earnings performance. Mid-cap companies led the pack with 52.0% positive results, outperforming both large caps at 43.0% and small caps at 45.0%. This mid-cap resilience may reflect a combination of nimble business models and sectoral positioning that have allowed these firms to better navigate inflationary pressures and supply chain disruptions.

Large Cap Highlights: Muthoot Finance Shines Amid NBFC Sector Challenges

Among large caps, Muthoot Finance emerged as a standout performer within the Non-Banking Financial Company (NBFC) sector. The company reported robust earnings growth driven by steady loan book expansion and improved asset quality. This performance contrasts with some peers in the NBFC space that continue to grapple with credit cost pressures and liquidity constraints. Muthoot’s ability to sustain growth while maintaining prudent risk management has earned it a strong rating from analysts, reinforcing its position as a sectoral leader.

Mid Cap Momentum: FSN E-Commerce Leads E-Retail Surge

In the mid-cap universe, FSN E-Commerce delivered impressive results, benefiting from the ongoing digital consumption boom. The company’s revenue growth accelerated, supported by expanding customer acquisition and higher order volumes. Margin improvement was also noted, reflecting operational efficiencies and better cost control. FSN’s performance underscores the resilience of the e-retail sector despite macroeconomic headwinds, and it remains a favoured pick among growth-oriented investors.

Small Cap and Micro Cap Standouts

Within the small cap segment, Cupid from the FMCG sector posted encouraging earnings, driven by strong volume growth and successful new product launches. The company’s focus on premiumisation and rural market penetration has helped it sustain momentum in a competitive landscape.

Micro caps delivered some of the most notable results overall. Jindal Poly Inve, another NBFC, and Trescon from the realty sector both reported solid earnings beats, reflecting niche market leadership and effective cost management. Additionally, Indo Thai Securities in the capital markets sector impressed with strong brokerage income growth and improved client acquisition metrics, signalling a positive outlook for financial services at the micro cap level.

Recent Developments: CIE Automotive India Ltd’s Flat Quarter

In the last 24 hours, CIE Automotive India Ltd, a mid-sized player in the Auto Components & Equipments industry with a market cap of ₹17,446.88 crores, declared its December 2025 quarter results. The company’s financial performance was largely flat, with net sales reaching a record ₹2,393 crores but earnings momentum stalling. The company’s score on performance metrics declined from 4 to 1 over the past three months, reflecting investor caution despite the top-line milestone. CIE Automotive’s mild bullish technical stance since 18 February 2026 at ₹459.15 suggests potential for recovery, but the flat earnings highlight ongoing challenges in the auto components sector amid global supply chain uncertainties.

Sectoral Earnings Patterns and Outlook

The NBFC sector continues to show a bifurcated earnings landscape, with select companies like Muthoot Finance and Jindal Poly Inve outperforming, while others face margin pressures and asset quality concerns. The FMCG sector, represented by companies such as Cupid, demonstrates resilience through volume growth and premiumisation strategies, which are helping to offset inflationary cost pressures.

The e-commerce and digital retail sectors remain bright spots, with FSN E-Commerce’s strong quarter exemplifying the sustained consumer shift towards online platforms. However, the auto components sector’s mixed results, as seen in CIE Automotive’s flat quarter, underscore the ongoing impact of semiconductor shortages and raw material cost volatility.

Market Cap Insights and Investor Implications

Mid-cap companies’ superior positive result ratio of 52.0% compared to large caps (43.0%) and small caps (45.0%) suggests that investors seeking growth opportunities might find better prospects in this segment. The relatively higher success rate among mid caps may be attributed to their agility and sectoral exposure to growth industries such as e-commerce and specialised financial services.

Large caps, while more stable, are still navigating macroeconomic headwinds, with only 43.0% reporting positive results. This calls for selective stock picking within the large cap universe, favouring companies with strong balance sheets and sectoral tailwinds.

Small and micro caps continue to offer pockets of strong performance, but investors should exercise caution given the higher volatility and uneven earnings quality in these segments.

Upcoming Earnings to Watch

Investors should keep an eye on upcoming results from companies such as BF Utilities Ltd and PVP Ventures Ltd scheduled for 23 February 2026, and Schaeffler India Ltd on 24 February 2026. These results will provide further clarity on sectoral trends and earnings momentum heading into the new fiscal year.

Conclusion: Earnings Season Reflects Gradual Recovery Amid Challenges

The December 2025 quarter earnings season paints a picture of gradual recovery with pockets of strength across market caps and sectors. While the overall proportion of positive results has improved modestly, the earnings landscape remains uneven, with mid caps outperforming and certain sectors like NBFCs and FMCG showing divergent fortunes. Investors are advised to focus on quality companies with sustainable earnings growth and robust balance sheets, while monitoring upcoming results for confirmation of emerging trends.

As the market continues to digest these results, the emphasis on selective stock selection and sectoral differentiation will be key to navigating the evolving investment landscape.

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