Quarterly Earnings Overview and Trends

The latest quarter saw a modest improvement in the share of companies reporting positive results, rising to 46.0% from 44.0% in September 2025. This marks a gradual recovery from the 42.0% positivity recorded in June 2025, though it remains slightly below the 47.0% seen in March 2025. The trend suggests a cautious optimism among corporates as they navigate a complex macroeconomic environment marked by inflationary pressures and geopolitical uncertainties.

Market capitalisation-wise, mid-cap companies led the charge with 52.0% reporting positive earnings, outperforming both large caps at 43.0% and small caps at 45.0%. This outperformance by mid caps may reflect their greater agility and exposure to growth sectors, compared to the more mature large caps and the volatility-prone small caps.

Sectoral and Company Highlights

Among large caps, Muthoot Finance stood out with robust results in the Non-Banking Financial Company (NBFC) sector, demonstrating resilience in loan growth and asset quality. The company’s performance underscores the ongoing demand for credit in the retail and gold loan segments despite tightening monetary conditions.

In the mid-cap space, FSN E-Commerce delivered impressive earnings within the E-Retail sector, benefiting from sustained consumer demand and operational efficiencies. This result highlights the continued digital transformation and penetration of e-commerce in India’s consumption landscape.

Small caps saw Cupid from the FMCG sector emerge as a top performer, reflecting strong brand equity and distribution expansion. The company’s ability to maintain margin stability amid rising input costs is noteworthy.

Micro Cap and Other Notable Performers

Micro cap stocks also contributed significantly to the positive earnings narrative. Jindal Poly Inve (NBFC) and Trescon (Realty) were among the top performers, showcasing strong operational execution and sector-specific tailwinds. Additionally, Indo Thai Securities from the Capital Markets sector delivered solid results, benefiting from increased market activity and brokerage income.

Recent Developments: CIE Automotive India Ltd

In the last 24 hours, CIE Automotive India Ltd, a key player in the Auto Components & Equipment industry with a market cap of ₹17,702.95 crores, reported flat financial performance for the December 2025 quarter. The company’s net sales reached a quarterly high of ₹2,393 crores, yet its overall score declined from 4 to 1 over the past three months, reflecting a mild bearish sentiment. Notably, CIE Automotive shifted from a sideways trend to mildly bullish on 18 February 2026 at ₹459.15, indicating potential for recovery despite recent stagnation.

Upcoming Earnings to Watch

Investors should keep an eye on the forthcoming results from BF Utilities Ltd and PVP Ventures Ltd, both scheduled for 23 February 2026, followed by Schaeffler India Ltd on 24 February 2026. These companies operate in sectors that have shown mixed earnings momentum recently, and their results could provide further clarity on sectoral trends heading into the new fiscal year.

Aggregate Profit Growth and Market Implications

While the proportion of positive earnings has shown incremental improvement, aggregate profit growth remains uneven across sectors and market caps. Mid caps’ outperformance suggests that investors may find better opportunities in companies with scalable business models and growth potential rather than in large caps, which continue to face margin pressures and slower top-line expansion.

Small caps, despite a lower positivity ratio than mid caps, still present selective opportunities, particularly in consumer-facing sectors like FMCG, where companies such as Cupid have demonstrated resilience. Micro caps, though riskier, have delivered standout performances in niche sectors, signalling that discerning stock selection remains critical.

Investor Takeaways

Given the mixed earnings landscape, investors are advised to adopt a selective approach, favouring companies with strong fundamentals, consistent earnings growth, and sectoral tailwinds. The improving trend in mid caps is encouraging, but caution is warranted given the macroeconomic uncertainties and inflationary challenges that could impact margins and demand.

Monitoring upcoming earnings announcements and sectoral developments will be key to identifying sustainable investment opportunities. The recent flat performance of companies like CIE Automotive highlights the importance of analysing both top-line growth and profitability metrics before making allocation decisions.

Conclusion

The December 2025 earnings season paints a picture of cautious recovery with mid caps leading the way in positive results and profit growth. Large caps continue to face headwinds, while small and micro caps offer pockets of strength amid volatility. Investors should focus on quality fundamentals and sectoral dynamics to navigate the evolving market environment effectively.

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