Nifty 50 EPS Estimates Cut: Cipla, L&T, Adani Enterprises, and Adani Ports Among Top Downgrades in May

India's Corporate Earnings Downgrade Cycle Shows Signs of Moderation

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. This moderation has been reflected in the Nifty 50 index, which has declined only 4.9% in the 12 months through May 2026.

Despite the earnings downgrade cycle showing signs of moderation, the overall trend remains under pressure. 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

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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, as per the JM Financial report. The sectors that saw widespread earnings downgrades include infrastructure & ports, cement, insurance, utilities, telecom, and industrials. 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.

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%.

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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.