Earnings per Share
Net profit attributable to equity shareholders divided by the weighted average number of shares outstanding.
Formula
EPS = Profit Attributable to Equity Shareholders / Weighted Average Shares Outstanding
Unit
₹
In depth
EPS converts a company-level profit into a per-share figure, which is what lets a ₹90 crore profit be compared with a ₹60 share price. The denominator is a weighted average, so shares issued mid-year count only for the part of the year they existed — a detail that trips up anyone recomputing EPS from the year-end share count. EPS can rise while the business stands still, simply through a buyback that shrinks the share count, which is why it must be read alongside revenue and profit growth. In consolidated accounts, profit attributable to non-controlling interests must be removed first.
Worked example
Net profit of ₹90 crore attributable to equity holders over 30 crore weighted average shares gives EPS = 90 / 30 = ₹3.00. A buyback of 3 crore shares would lift EPS to 90 / 27 = ₹3.33, a 11% rise with profit unchanged.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Earnings per Share” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.