Ind AS 33 EPS Calculation for Unlisted and Listed Companies

Reviewed by Ravi Sisodia · Last reviewed 13 August 2026

Finin2min 2-Minute Summary

• Ind AS 33 has an India-specific broad scope: it applies to companies that have issued ordinary shares and to which notified Ind AS apply, so the calculation is relevant to qualifying unlisted as well as listed companies.
• Basic EPS uses profit or loss attributable to ordinary equity holders divided by the weighted-average ordinary shares outstanding during the period.
• Diluted EPS adjusts both earnings and shares for dilutive potential ordinary shares; antidilutive instruments are excluded.
• Share splits, bonus issues and the bonus element in rights issues can require retrospective adjustment of EPS for periods presented.
• ESOPs, options, convertibles and contingently issuable shares require instrument-by-instrument dilution testing rather than a simple fully diluted cap-table percentage.

Start with the numerator before touching the cap table

Finance should reconcile profit attributable to ordinary equity holders to the financial statements and then adjust for preference dividends and other items that Ind AS 33 requires in the numerator. For consolidated financial statements, the focus is profit attributable to ordinary equity holders of the parent. A management EBITDA number or total comprehensive income is not a substitute for the standard's earnings numerator.

Next build the denominator day by day or transaction by transaction. New shares enter the weighted average from the date consideration becomes receivable, subject to the specific guidance for different issue types. Buy-backs reduce the denominator from the relevant date. A year-end issued-share count therefore rarely proves the annual denominator.

Dilution is an incremental earnings-per-share test

Potential ordinary shares are included only when they reduce earnings per share from continuing operations or increase loss per share in the manner prescribed. Each class or series is tested separately and generally sequenced from the most dilutive to the least dilutive. Options and warrants use the treasury-share style method in the standard; convertibles require numerator and denominator adjustments reflecting the assumed conversion.

Employee options deserve particular care. Fixed or determinable employee options can be potential ordinary shares for diluted EPS even before vesting, while performance-based awards may be contingently issuable. The share-based-payment expense under Ind AS 102 and the dilution mechanics under Ind AS 33 answer different questions and should not be conflated.

Worked example: mid-year fund raise plus ESOPs

Assume a company has 10,00,000 ordinary shares on 1 April, issues 2,00,000 shares for cash on 1 October and has employee options outstanding. The basic denominator weights the new cash shares for the period they were outstanding rather than using 12,00,000 for the whole year. The option population is then assessed separately for diluted EPS using the relevant exercise price, average market price or contingent conditions under Ind AS 33. The final diluted denominator is not simply the closing cap table.

EPS close checklist

• Reconcile the earnings numerator to the audited statement of profit and loss.
• Prepare a dated share-movement schedule with issue, conversion and buy-back evidence.
• Identify every option, warrant, convertible and contingent share arrangement.
• Test antidilution separately for each potential ordinary-share series.
• Retrospectively adjust comparative EPS for bonus/split effects where the standard requires.
• Reconcile per-share disclosures, instrument terms and post-reporting-date share transactions.

Questions finance teams commonly ask

Does Ind AS 33 apply only to listed companies?

No. The notified Indian standard states that it applies to companies that have issued ordinary shares and to which notified Ind AS apply.

Is basic EPS closing profit divided by closing shares?

No. The denominator is the weighted-average ordinary shares outstanding during the period.

Are all ESOPs automatically included in diluted EPS?

No. The instrument is tested under the potential-ordinary-share and dilution rules; performance and vesting terms matter.

Can antidilutive instruments be shown in diluted EPS anyway?

No. Antidilutive potential ordinary shares are excluded from the diluted EPS calculation for the period.

Official sources

• ICAI - Ind AS 33 official 2025-26 compendium PDF
• ICAI - Compendium of Indian Accounting Standards 2025-26
• Finin2min Ind AS Hub - broader standard-level reference.

Disclaimer

Educational and professional reference only; confirm the current law, rates and the facts of your case before relying on this page.