New Delhi, June 4 -- 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...