Nifty 50 EPS cuts: Cipla, L&T, Adani Enterprises, Adani Ports among top downgrades in May
In May 2026, 31 Nifty 50 companies — representing 62% of the index constituents — witnessed downgrades to their FY27 EPS estimates, while only 15 companies saw upgrades.
India’s corporate earnings downgrade cycle appears to be moderating, although profit expectations remain under pressure. Consensus FY27 earnings estimates for Nifty 50 companies have been cut by 9% over the past year, according to a report by JM Financial.
The Nifty 50 index has declined only 4.9% in the 12 months through May 2026, even as FY27 earnings-per-share (EPS) estimates have witnessed a steeper downgrade of 9%. In contrast, FY28 estimated EPS has seen a modest upgrade of 1.3%, signalling early signs of stabilisation in earnings expectations.
However, the earnings downgrade cycle remains both broad-based and persistent. After FY27 EPS estimates were revised downward by 1.8% in April, analysts lowered them by another 0.3% in May. Similarly, FY28 estimates were cut by 1.4% in April and an additional 0.1% in May, suggesting that expectations continue to be reset lower despite the earnings season being largely behind.
Widespread EPS cuts across Nifty 50 companies
In May 2026, 31 Nifty 50 companies — representing 62% of the index constituents — witnessed downgrades to their FY27 EPS estimates, while only 15 companies saw upgrades, JM Financial report said.
Sector-wise, earnings downgrades were widespread. All companies in infrastructure & ports, cement, insurance, utilities, telecom, and industrials registered cuts in earnings estimates. Meanwhile, four out of five banks and pharmaceutical companies also faced downgrades. Consumer and automobile sectors were not spared either, with five out of eight consumer companies and three out of five auto companies witnessing EPS cuts.
On the other hand, metals and mining emerged as a relative outperformer, with three out of four companies in the sector receiving earnings upgrades.
Sectors witnessing the sharpest earnings cuts
The sharpest month-on-month cuts to FY27 EPS estimates in May were witnessed across infrastructure & ports, pharmaceuticals, telecom, insurance, industrials, cement, and consumer sectors.
Infrastructure & ports saw the steepest downgrade at 4.9%, followed by pharmaceuticals at 3.8% and telecom at 3.0%. Insurance and industrials sectors recorded earnings cuts of 2.5% and 2.2%, respectively, while cement and consumer sectors witnessed downgrades of 2.1% and 1.9%.
On the other hand, select sectors saw upgrades to FY27 earnings estimates, led by metals & mining with a 6.3% increase, followed by NBFCs at 0.7% and IT at 0.2%.
Nifty 50 companies with the biggest EPS revisions
Among individual companies, the sharpest EPS downgrades in May 2026 were seen in Cipla, Dr. Reddy’s Laboratories, Adani Enterprises, Larsen & Toubro, and Adani Ports & SEZ.
In contrast, the highest earnings upgrades were recorded for Hindalco Industries, ONGC, InterGlobe Aviation, Tata Steel, and Bajaj Auto.
The JM Financial report also noted that while FY27 earnings estimates for Nifty 50 companies have been cut by 9% over the past year, FY28 earnings forecasts have seen only a modest 1.3% upgrade.
About the Author
Ankit Gohel is the Deputy Chief Content Producer at Livemint, specialising in financial markets, macroeconomics, and regulatory developments. With a strong focus on equity markets, primary issuances, and policy-driven market movements, he brings clarity to complex financial developments for investors and market participants. <br><br> With nine years of experience in business and financial journalism, Ankit’s approach is rooted in the belief that market reporting should go beyond headlines — connecting data, policy, and ground realities to deliver actionable insights. His work consistently bridges the gap between institutional analysis and investor understanding. <br><br> Ankit has spent three years at Livemint, where he currently helps drive market coverage, editorial strategy, and high-impact financial stories. Prior to this, he worked with leading business news networks such as CNBC-TV18, ET Now, TickerPlant News Service where he built deep expertise in stock market analysis, macroeconomic trends, primary markets, and coverage of key regulators including the RBI and SEBI. <br><br> Over the years, he has covered market cycles across bull and bear phases, IPO booms, liquidity shocks, and major policy shifts that reshaped investor sentiment. He has interviewed fund managers, corporate leaders, and policymakers, translating their perspectives into sharp, data-backed narratives. Ankit combines speed with accuracy — ensuring timely, credible, and insight-driven financial journalism that empowers both retail and institutional audiences.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.