Nifty 50 EPS Cuts in May 2026: Cipla, L&T, Adani Enterprises and Adani Ports Among Top Downgrades as West Asia Conflict and Q4 Results Pressure Earnings
- June 4, 2026
- Posted by: Ankit Jaiswal
- Category: News
Nifty 50 EPS revision cycle May 2026: 66% of companies saw FY27 cuts in April (JM Financial). BofA: FY27 Nifty EPS growth cut to 8.5% YoY. Cipla: Lanreotide disruption + gRevlimid phase-out. Adani Enterprises: Q4 FY26 net loss Rs 221 Cr. Nifty 50 at 23,435 on 4 Jun 2026.
Nifty 50 EPS estimates faced fresh downward revisions in May 2026, with Cipla, L&T, Adani Enterprises, and Adani Ports among the constituents bearing the deepest cuts as the Q4 FY26 results season concluded and the impact of West Asia conflict-linked commodity cost inflation percolated through earnings models. This Nifty 50 EPS downgrade cycle in May 2026, which began gaining momentum through 2025 and into 2026, has now been compounded by geopolitical risk and company-specific earnings disappointments, with BofA Securities cutting its FY27 Nifty earnings growth estimate to 8.5 per cent year-on-year, sharply below the 14 per cent forecast it held before the conflict began.
According to JM Financial, 66 per cent of Nifty 50 companies saw their FY27 EPS estimates cut in April 2026, highlighting how broad the Nifty 50 EPS revision cycle has become, with cumulative FY26 and FY27 EPS estimates revised down by 7.3 per cent and 5.7 per cent respectively over the downgrade cycle. All Nifty 50 EPS revision data for May 2026 confirms the trend is continuing, with the company-specific triggers varying across sectors but the macro headwinds, including West Asia conflict-driven crude prices, petcoke cost inflation, real estate weakness, and IT sector AI disruption , remaining common threads.
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Nifty 50 EPS Cuts May 2026: Latest Nifty 50 EPS Stock Data and Revision Context
The following table captures the current market prices for Nifty 50 stocks that featured among the top EPS downgrades, alongside the key reasons for the revisions, based on live data from 4 June 2026 and Q4 FY26 results.
| Stock | CMP (4 Jun 2026) | Open | 52W High | 52W Low | EPS Revision Reason |
|---|---|---|---|---|---|
| Cipla | Rs 1,380.80 | Rs 1,365 | Rs 1,512.70 | Rs 1,237.70 | Lanreotide supply halt; gRevlimid phase-out; Nuvama downgrade to Reduce |
| L&T | Rs 3,953.10 | Rs 3,945 | Rs 4,348.50 | Rs 3,557.90 | Revised infra capex outlook; West Asia conflict impact on overseas projects |
| Adani Enterprises | Rs 2,956.30 | Rs 2,920 | Rs 3,218.10 | Rs 2,633.10 | Q4 FY26 net loss Rs 221 Cr on asset depreciation; EPS estimates trimmed |
| Adani Ports | Rs 1,804.30 | Rs 1,794.30 | Rs 1,984.10 | Rs 1,623.50 | International port exposure (Haifa, Colombo); geopolitical risk premium |
| Nifty 50 Index | 23,435.30 | 23,282.45 | 23,462.30 | 23,247.30 | Broad EPS revision cycle; BofA FY27 growth cut to 8.5% YoY |
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Why Nifty 50 EPS Downgrades Are Accelerating in May 2026
The Nifty 50 EPS revision cycle in May 2026 is driven by overlapping macro and micro headwinds. Understanding the specific drivers for each major downgrade helps investors identify which earnings cuts are temporary and which reflect structural challenges.
Cipla: Lanreotide and gRevlimid Drive Key Nifty 50 EPS Cut in May 2026
Cipla is among the most significant Nifty 50 EPS downgrade stories of May 2026. The company disclosed that manufacturing of Lanreotide, one of its top three US products with approximately USD 150 million in annual revenue and a 22 per cent market share, has been temporarily paused. The halt is linked to remediation efforts at Pharmathen’s Rodopi facility in Greece following nine USFDA observations. Manufacturing is expected to restart only in the first half of FY27, creating a multi-quarter revenue gap. Simultaneously, the phase-out of gRevlimid exclusivity, a high-margin oncology product, has removed another key earnings driver. Morgan Stanley maintained its Underweight rating and cut its Cipla target to Rs 1,292 per share, trimming FY26 and FY27 EPS by 2 and 1 per cent respectively. Nuvama downgraded Cipla to Reduce with a Rs 1,360 target, warning of market share risk and downside to FY27 and FY28 earnings if the Lanreotide disruption prolongs.
L&T: West Asia Headwinds Behind L&T Nifty 50 EPS Downgrade in May 2026
Larsen and Toubro is another Nifty 50 EPS downgrade in May 2026 driven by the West Asia conflict. L&T has significant project execution exposure to the Gulf region across infrastructure, hydrocarbon, and defence segments. The conflict has created execution uncertainty and revised the timeline for new order inflows from Middle East clients. Analysts have also tempered the domestic government capex outlook, noting that central government capital expenditure declined 25 per cent year-on-year in both December 2025 and January 2026 before rebounding 60 per cent in February 2026. This volatility in capex flows has made FY27 order inflow projections harder to model, leading to trimmed L&T EPS estimates.
Adani Enterprises: Q4 FY26 Net Loss Triggers Nifty 50 EPS Cut for FY27
Adani Enterprises swung to a Q4 FY26 net loss of Rs 221 crore, from a profit in the year-ago period, primarily due to higher depreciation on recently commissioned assets including the Navi Mumbai International Airport and the copper plant. While the company’s full year FY26 EBITDA grew 3 per cent year-on-year to Rs 4,479 crore, and management noted that 80 per cent of EBITDA now comes from mature, long-term contracted businesses, the near-term EPS impact of the Q4 loss has led analysts to trim FY27 estimates. The company declared a dividend of Rs 1.30 per share for FY26, with the record date set as 12 June 2026.
Adani Ports: Geopolitical Exposure Behind Nifty 50 EPS Trim in May 2026
Adani Ports and SEZ, India’s largest port operator with capacity of 633 million metric tonnes across 15 ports, has seen EPS estimates trimmed in May 2026 due to geopolitical risk to its international operations. The company operates ports in Haifa (Israel), Dar es Salaam (Tanzania), and Colombo (Sri Lanka). The West Asia conflict has directly affected the operational environment for its Haifa port, while broader shipping disruption in the region impacts throughput and yields. Despite reporting strong Q4 FY26 revenue crossing Rs 10,000 crore and the board recommending a dividend with a 12 June 2026 record date, the EPS revision reflects caution about FY27 earnings trajectory given geopolitical headwinds.
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Nifty 50 EPS Revision Cycle Sector-by-Sector for May 2026
The Nifty 50 EPS cut cycle in May 2026 is not limited to the four stocks highlighted above. JM Financial’s April 2026 data shows the downgrade is broad-based, though with varying intensity by sector.
| Sector | % of Companies with FY27 EPS Cut (Apr 2026) | Key Driver | Outlook |
|---|---|---|---|
| Aviation | 100% (steepest at -16.7% MoM) | IndiGo FY26 loss of Rs 2,537 Cr; rupee depreciation; fuel costs | Negative near term |
| Cement | 100% (-6.2% MoM) | Petcoke cost spike; May price hike failure | Neutral (Nuvama) |
| Insurance | 100% (-4.8% MoM) | Claims normalisation; market weakness | Cautious |
| Banking | 4/5 companies | Credit growth moderation; NIM compression in rate cut cycle | Mixed |
| Automobile | 4/5 companies | West Asia impact on input costs; EV transition capex | Mixed |
| Consumer | 6/8 companies | Real estate slowdown; weak urban demand | Cautious |
| Pharma (incl. Cipla) | Multiple downgrades | Lanreotide, gRevlimid, US pricing pressure | Sector under pressure |
| IT | 60% of companies | AI disruption structural concern; ADR weakness | Underweight (BofA) |
| Metals and Mining | Upgrades in some | Commodity price recovery; China demand | Positive for select names |
Macro Picture: BofA Cuts FY27 Nifty 50 EPS Growth to 8.5% YoY
The macro backdrop for the current round of Nifty 50 EPS revisions in May 2026 is dominated by the West Asia conflict’s effect on commodity prices and corporate profitability. BofA Securities cut its FY27 Nifty earnings growth estimate to 8.5 per cent year-on-year in April 2026, citing ongoing geopolitical tensions and rising commodity prices. This compares to 11 per cent in early March 2026 and 14 per cent before the conflict began. The brokerage noted that higher energy and commodity prices are pushing inflation and pressuring both growth and corporate profitability.
Kotak Institutional Equities now expects FY26 and FY27 Nifty 50 net profit growth , another key Nifty 50 EPS marker , of 9.6 per cent and 17.5 per cent respectively, revised from earlier expectations of 12.1 per cent and 15.4 per cent at the start of FY26. JPMorgan, on the other hand, has maintained a more constructive view, projecting the Nifty 50 could reach 30,000 by end-2026, supported by rate cuts, tax relief boosting domestic demand, and a potential US-India trade deal resolution that could benefit IT and pharma stocks.
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Conclusion
The Nifty 50 EPS revision cycle continued in May 2026, with Cipla, L&T, Adani Enterprises, and Adani Ports among the most prominent Nifty 50 EPS downgrades across Nifty 50 EPS-tracked companies. The triggers vary by company but share common macro roots: West Asia conflict-linked commodity inflation, real estate weakness, and company-specific disappointments in Q4 FY26 results. BofA Securities has cut its FY27 Nifty earnings growth estimate to 8.5 per cent year-on-year, and JM Financial data shows 66 per cent of Nifty 50 companies had FY27 EPS cuts in April 2026. Investors should watch June 2026 cement price hike outcomes, crude oil direction, and RBI rate commentary as the key macro variables determining whether the current Nifty 50 EPS downgrade cycle moderates or deepens further into Q1 FY27.
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Frequently Asked Questions on Nifty 50 EPS Cuts
Which Nifty 50 stocks saw the biggest EPS cuts in May 2026?
Ans. Among Nifty 50 stocks, Cipla, L&T, Adani Enterprises, and Adani Ports were among the companies with notable EPS cuts in May 2026. Cipla faced downgrades from Morgan Stanley and Nuvama due to Lanreotide supply disruption and gRevlimid phase-out. Adani Enterprises posted a Q4 FY26 net loss of Rs 221 crore due to asset depreciation, triggering FY27 EPS cuts. L&T and Adani Ports faced revised estimates on West Asia conflict headwinds.
Why are Nifty 50 EPS estimates being cut in May 2026?
Ans. Nifty 50 EPS cuts in May 2026 are driven by multiple factors: West Asia conflict pushing crude oil and petcoke prices higher, squeezing margins across cement, autos, and chemicals; real estate weakness dragging on construction-linked companies; Lanreotide supply disruption at Cipla; and Adani Enterprises posting a Q4 FY26 net loss. BofA Securities cut FY27 Nifty earnings growth to 8.5% year-on-year from 14% pre-conflict, citing geopolitical tensions and rising commodity prices.
What is the current Nifty 50 EPS estimate for FY27?
Ans. BofA Securities cut its FY27 Nifty earnings growth estimate to 8.5% year-on-year in April 2026, down from 11% in early March and 14% before the West Asia conflict. JM Financial data shows 66% of Nifty 50 companies saw FY27 EPS cuts in April 2026, with cumulative FY26 and FY27 EPS estimates cut by 7.3% and 5.7% respectively since the downgrade cycle began. JPMorgan is more constructive, targeting the Nifty 50 at 30,000 by end-2026.
Why was Cipla EPS cut in May 2026?
Ans. Cipla EPS was cut due to three headwinds: Lanreotide manufacturing halt at European partner Pharmathen (nine USFDA observations), accounting for approximately USD 150 million in annual US revenue; phase-out of gRevlimid exclusivity; and rising competition for generic Advair. Morgan Stanley cut its target to Rs 1,292 with Underweight rating. Nuvama downgraded Cipla to Reduce with a Rs 1,360 target. Manufacturing restart expected only in H1 FY27.
Why was Adani Enterprises EPS cut in May 2026?
Ans. Adani Enterprises posted a Q4 FY26 net loss of Rs 221 crore, swinging from a profit in the prior year, due to higher depreciation on recently commissioned assets including Navi Mumbai International Airport and the copper plant. Full year FY26 EBITDA grew 3% to Rs 4,479 crore. The Q4 loss triggered EPS estimate cuts for FY27, even as management noted 80% of EBITDA now comes from mature, long-term contracted businesses.
How has Adani Ports performed in Q4 FY26?
Ans. Adani Ports reported Q4 FY26 revenue crossing Rs 10,000 crore with the board recommending a dividend, record date 12 June 2026. EPS cuts for Adani Ports in May 2026 reflect geopolitical risk to its international port operations in Haifa (Israel) amid the West Asia conflict, plus revised infrastructure capex outlook. For FY25, APSEZ had recorded all-time high PAT of Rs 11,061 crore up 37% year-on-year.
Which sectors had the most EPS cuts in May 2026?
Ans. In April 2026, aviation had the steepest monthly EPS downgrade at 16.7% for FY27 estimates, followed by cement at 6.2% and insurance at 4.8%. Banking and automobile sectors each saw four out of five companies downgraded. Pharma including Cipla continued to face pressure. Metals, mining, IT services, and NBFCs were among the few pockets showing earnings upgrades in April 2026.
Is this a good time to invest in Nifty 50 stocks amid EPS cuts?
Ans. This article does not constitute investment advice. BofA Securities noted in April 2026 that while markets are not yet in a value zone, the risk-reward is turning favourable. JPMorgan projects the Nifty 50 could reach 30,000 by end-2026. Kotak Institutional Equities expects FY27 Nifty net profit growth of 17.5%. Investors should consult a SEBI-registered financial advisor before making any investment decisions.
