Out of Favour: Eternal sees sharpest EPS cut among Nifty50 firms in April

Eternal, which operates Zomato, recorded the highest earnings per share (EPS) downgrade among Nifty50 companies in April, with brokerages reducing FY26 estimates by an average of 15.1%, according to a report by JM Financial.

Other companies that saw significant cuts in EPS estimates during the month include IndusInd Bank (-8.9%), Infosys (-5.1%), Tata Consultancy Services (-4.7%), and Maruti Suzuki (-4.0%). On the other hand, stocks that saw the largest upgrades were Kotak Mahindra Bank (+3.6%), SBI Life (+3.1%), Jio Financial Services (+3.0%), Reliance Industries (+1.1%), and ICICI Bank (+0.9%).

Overall, 70% of Nifty50 companies—35 out of 50—saw a cut in FY26 earnings estimates in April. This includes banks: 4 out of 6 (67%), IT services: 5 out of 5 (100%), consumer: 8 out of 8 (100%) and automobiles: 4 out of 6 (67%), JM Financial said.

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Meanwhile, 12 Nifty50 companies (24%) received upgrades in FY26 EPS estimates.

In the twelve months from April 2024 to April 2025, the Nifty50 index rose by 7.7%. However, EPS estimates for FY25 and FY26 were cut by 5.1% and 6.8%, respectively, over the same period.

In April 2025 alone, FY25 EPS estimates saw a marginal increase of 0.3%, while FY26 and FY27 estimates were reduced by 1.1% and 1.0%, respectively. JM Financial noted that muted analyst expectations for fourth-quarter FY25 profit after tax may have contributed to the slight uptick in FY25 EPS, even as the downgrade cycle for subsequent years continues. The FY26 and FY27 downgrades in April were sharper than those recorded in February (0.9% and 0.6%) and March (0.2% and 0.6%).

Earnings misses, global jitters pull FY26 forecasts lower


Low expectations heading into the Q4FY25 earnings season have helped corporates post a largely favourable beat-miss ratio—53 beats, 42 misses, and 24 neutrals so far—for the NSE 500 universe, according to a report by ICICI Securities.

Despite the decent headline beat, FY26 consensus profit after tax (PAT) has been cut by 1.8%, thanks to global uncertainties and weak showings from IT, FMCG, and financial services (NBFCs + insurance). The broader picture is underwhelming—aggregate PAT growth is crawling at 4% on a free-float basis, dragged down by select BFSI names, large-cap defensives in IT and FMCG, and one-offs in commodity stocks.

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