Fundamental Analysis

By VestAI Research | Last updated: March 2026

Earnings Per Share: Meaning, Definition & Indian Stock Market Examples

Net profit divided by total shares — profit attributable to each share.

Disclaimer: This article is for educational purposes only and does not constitute SEBI-registered investment advice. Consult a SEBI-registered investment advisor before making investment decisions.

What is Earnings Per Share?

Earnings Per Share (EPS) is calculated by dividing a company's net profit by the total number of outstanding shares. It represents how much profit the company earns for each share you hold. EPS growth is one of the most important drivers of stock price appreciation over time.

Earnings Per Share — Indian Stock Market Example

Reliance Industries' EPS has grown from ~₹45 in FY2018 to ~₹100+ as Jio and Retail became profitable. TCS consistently grows EPS at 8–12% annually. Zomato had negative EPS for years until achieving profitability in FY2024.

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Frequently Asked Questions about Earnings Per Share

What is diluted EPS vs basic EPS?

Basic EPS uses the current share count. Diluted EPS assumes all convertible instruments (ESOPs, warrants, convertible bonds) are exercised, increasing the share count and lowering EPS. Diluted EPS gives a more conservative and accurate picture.

How often is EPS reported in India?

Companies listed on NSE and BSE report quarterly results within 45 days of each quarter end. Annual EPS is declared with the annual results. Trailing Twelve Month (TTM) EPS sums the last four quarters.

Related Terms

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