Quarterly Earnings Trends and Positive Result Proportions

As per the latest data, a total of 4,084 stocks have declared their results for the December 2025 quarter. The proportion of companies reporting positive earnings has inched up slightly to 46.0%, compared to 44.0% in September 2025 and 42.0% in June 2025. This marks a modest recovery from the March 2025 quarter, which saw 47.0% positive results, indicating a broadly stable but cautious earnings environment.

Sectoral and market capitalisation-wise analysis reveals a distinct pattern. Mid-cap stocks have delivered the strongest positive results, with 52.0% beating expectations, followed by small caps at 45.0%, and large caps lagging at 43.0%. This divergence suggests that mid-sized companies are currently better positioned to capitalise on market opportunities or manage costs effectively, whereas larger firms face more pronounced headwinds.

Top Performers Across Market Capitalisation Segments

Among large caps, Muthoot Finance from the Non-Banking Financial Company (NBFC) sector stood out with robust earnings, reflecting sustained demand for credit and prudent risk management. The company’s results underscore the resilience of the NBFC sector despite macroeconomic uncertainties.

In the mid-cap space, FSN E-Commerce delivered impressive growth, benefiting from the ongoing digital consumption boom and expanding market share in the e-retail segment. This performance highlights the continued investor appetite for technology-driven business models with scalable growth prospects.

Small caps saw Cupid, operating in the FMCG sector, emerge as a top performer, driven by strong volume growth and effective cost controls. The FMCG sector’s defensive qualities have helped such companies navigate inflationary pressures better than more cyclical peers.

Micro Cap and Small Cap Leaders Highlight Diverse Sectoral Strengths

Micro cap stocks have also delivered notable performances, with Jindal Poly Inve (NBFC sector) and Trescon (Realty sector) emerging as top results overall. These companies have demonstrated strong operational execution and niche market positioning, which have translated into earnings beats despite broader sectoral challenges.

Additionally, Indo Thai Securities from the Capital Markets sector has been a standout among small caps, benefiting from increased market activity and improved brokerage revenues. This reflects a broader trend of financial services firms capitalising on heightened investor participation.

Recent Earnings Highlights: 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 ₹17,581.55 crores, declared its December 2025 quarter results. The company’s financial performance was largely flat, with net sales reaching a quarterly high of ₹2,393 crores. However, the company’s momentum score declined from 4 to 1 over the past three months, signalling a mild shift from a sideways trend to a mildly bullish stance as of 18 February 2026 at ₹459.15.

This mixed performance suggests that while top-line growth remains intact, margin pressures or cost escalations may be constraining profitability. Investors will be watching closely for upcoming results from related sectors to gauge broader industry trends.

Upcoming Earnings to Watch

Market participants should keep an eye on the forthcoming results from BF Utilities Ltd and PVP Ventures Ltd 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 recovery or stress.

Sectoral Earnings Patterns and Market Implications

The earnings season has underscored a clear divergence between sectors. Financial services, particularly NBFCs and capital markets, have generally reported stronger results, buoyed by improving credit demand and market activity. Conversely, sectors such as auto components and realty continue to face headwinds from supply chain disruptions and subdued demand.

Mid-cap companies’ outperformance relative to large caps suggests that nimble, growth-oriented firms are better positioned to navigate the current economic environment. This trend may encourage investors to rebalance portfolios towards mid-sized firms with scalable business models and robust earnings quality.

Overall, aggregate profit growth remains modest, reflecting cautious corporate guidance amid inflationary pressures and geopolitical uncertainties. The slight uptick in positive results compared to previous quarters is encouraging but does not yet signal a broad-based earnings recovery.

Investor Takeaways and Strategic Considerations

For investors, the current earnings landscape emphasises the importance of selective stock picking and sectoral diversification. Companies with strong balance sheets, resilient demand drivers, and operational efficiencies are likely to outperform in the near term. Meanwhile, cyclical sectors may require a more cautious approach until clearer signs of recovery emerge.

Monitoring upcoming earnings announcements and management commentary will be critical to refining investment strategies. The evolving macroeconomic backdrop, including interest rate trajectories and commodity price movements, will also play a pivotal role in shaping corporate profitability going forward.

Conclusion

The December 2025 quarterly results season paints a picture of a market in transition, with pockets of strength amid broader uncertainty. Mid-cap companies continue to lead in positive earnings surprises, while large caps face more pronounced challenges. Sectoral disparities highlight the uneven nature of the recovery, underscoring the need for investors to remain vigilant and adaptable in their portfolio allocations.

As the market digests these results, the focus will shift to upcoming earnings and macroeconomic developments that will determine the trajectory of corporate profits in the coming quarters.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today