Among the most notable turnarounds was InterGlobe Aviation, which posted a profit of Rs 549 crore in the December quarter after reporting a loss of Rs 2,582 crore in the preceding quarter. The sharp swing came on the back of strong travel demand and higher passenger traffic during the festive season.
Similarly, private lender IndusInd Bank returned to profitability, posting a net profit of Rs 128 crore after a loss of Rs 437 crore in the September quarter. In the logistics space, Delhivery reported a profit of Rs 38 crore after a loss of Rs 54 crore in the previous quarter, indicating improvement in operating leverage and shipment volumes.
The turnaround trend was visible across other sectors as well. Companies such as V-Mart Retail, Ramkrishna Forgings, Puravankara and RattanIndia Power also moved into profitability in the December quarter.
Several midcap and smaller companies delivered sharp earnings recoveries. Textile player AYM Syntex, fertilizer producer National Fertilizers, infrastructure firm BL Kashyap and Sons and logistics company Mahindra Logistics all reported profits after losses in the previous quarter.
Some companies also saw great improvement in revenues alongside the profit turnaround. For instance, Bluestone Jewellery and Lifestyle reported sales of Rs 749 crore in the December quarter compared with Rs 514 crore in the September quarter, while EPACK Durable nearly doubled its quarterly revenue to Rs 428 crore from Rs 213 crore.
In real estate, Mahindra Lifespace Developers saw a sharp jump in revenue to Rs 459 crore from just Rs 17 crore in the previous quarter, reflecting project completions and improved demand in the housing market.Several other companies also delivered meaningful profit reversals, including Panacea Biotec, Unichem Laboratories, Wonderla Holidays, Route Mobile, and Shoppers Stop.
Earnings season meets expectations
Overall, India Inc’s December quarter earnings season has largely met expectations, with brokerages turning constructive on several sectors.
According to Motilal Oswal Financial Services, 34% of companies in its coverage universe beat estimates at the profit level, while 32% missed, leaving the overall beat-miss ratio broadly balanced. Importantly, the pace of earnings downgrades has slowed compared with earlier in the financial year.
“The 3QFY26 earnings season reaffirms our analysis that the aggregate earnings revision trajectory has become more palatable,” the brokerage said. It pointed out that after a period of earnings cuts in early FY26, upgrades began in the September quarter and continued in the December quarter.
Companies in its coverage universe delivered 16% year-on-year profit growth during the quarter, slightly ahead of its 14% estimate. Looking ahead, Motilal Oswal expects earnings growth for the Nifty to average around 12% annually between FY25 and FY27.
Valuations, too, appear reasonable. The brokerage noted that the Nifty is currently trading at around 20.4 times one-year forward earnings, marginally below the long-term average, suggesting limited downside if earnings growth sustains.
Axis Securities echoed a similar outlook, particularly for the financial sector. The brokerage maintained “buy” ratings on several banks and NBFCs following the December quarter results, stating that credit growth remains stable while asset quality trends remain manageable.
If the recovery holds, several of these companies could remain on the radar as potential beneficiaries of earnings stability in the Indian market.