RupeeCase
Education . Buybacks . 2 of 3
The denominator did the work
Cut the share count, lift the per share number
One company earning a flat Rs 1000 cr. As it buys back and cancels stock, earnings per share climbs on arithmetic alone. Not one extra rupee was earned.
Earnings per share climbs while profit stands perfectly still EPS UPLIFT FROM THE BUYBACK ALONE . NET PROFIT FLAT retire 5 pct plus 5.3 pct retire 10 pct plus 11.1 pct retire 15 pct plus 17.6 pct 0 5 10 15 20 Share of stock bought back and cancelled . net profit fixed at Rs 1000 cr
Source . illustrative . EPS equals net profit divided by shares
Retire 15 pct of the shares and EPS jumps 17.6 pct with net profit dead flat. That is division dressed up as growth.
Source . illustrative . 26 Jul 2026
Tanmay Kurtkoti . Builder of RupeeCase