Real Estate Cash Flows Are Lumpy. Here Is a Better Way to Read Them. 10Aug2026

Real Estate Cash Flows Are Lumpy. Here Is a Better Way to Read Them. 10Aug2026

 
Follow @vrk100
 

(This is my 531st blog since 2010. Over the years, I have covered global financial markets, with a focus on India, and continue to share insights to help readers understand complex topics in simple language.

The views expressed here are for information purposes only and should not be construed as a recommendation or investment advice. While the author is a CFA Charterholder with nearly 25 years of experience in financial markets, this content is intended to share general insights and does not constitute financial guidance. 

Please consult your financial adviser before taking any investment decision. Safe to assume the author has a vested interest in stocks / investments discussed if any.) 

1 Introduction

Investors tend to focus more on profits, while ignoring cash flows.

But profit is only part of the story. Cash generation can look very different, particularly in real estate business where project cycles and cash flows are lumpy.

I looked at seven years of cash flow and profit data for eight listed Indian real estate companies. The results are quite revealing — and sometimes surprising.

This is a simple attempt to look beyond reported profit and ask a basic question: how well are profits actually converting into cash?

 

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Related blogs:

Earnings Quality: Understanding Cash Conversion in Stock Analysis 11May2026 

Negative Cash Conversion Cycle and Negative Working Capital 15May2023 

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2 Profit is not cash

A company can report a healthy profit and still generate little cash. It can also generate much more cash than the profit reported for the year.

This matters particularly in real estate. Property development is a long-cycle business. 

Land, construction, customer advances, project expenditure and collections happen at different points in time.

So, how much of a company's reported profit is actually turning into cash?

One simple way to look at this is the Cash Conversion Ratio or CCR.

CCR = Cash Flow from Operations (CFO) / Net Profit (NP)

If a company reports Rs 100 crore of net profit and generates Rs 100 crore of operating cash flow, its CCR is 100 per cent.

3 Why one year's CCR can mislead

In a business with uneven cash flows, a single year's CCR can be highly misleading.

This is particularly true for property developers. A large customer collection, a land or project payment or a change in working capital can have a major effect on CFO in one year.

The eight companies in this exercise make the point very clearly.

For example, Anant Raj's annual CCRs over the seven years ranged from -1,667 per cent to 798 per cent.

Sobha's ranged from 104 per cent to 1,320 per cent.

Godrej Properties had negative CCRs in most of the years despite reporting profits.

These numbers are difficult to interpret if each year is viewed in isolation.

Note: Please refer Appendix below for CCR data for all seven years for the eight companies analysed. 

4 A better way to look at it

I therefore use a 3-year rolling cumulative CCR.

The calculation is simple:

3-year rolling cumulative CCR = cumulative CFO for three years / cumulative net profit for three years

The periods overlap. So, the latest figure covers FY 2023-24 to FY 2025-26, the previous figure covers FY 2022-23 to FY 2024-25, and so on.

This does not remove the volatility of the business. It reduces the effect of short-term timing differences.

More importantly, it helps answer a more useful question:

Are reported profits converting into operating cash over a reasonable period?

Note: Please refer Appendix below for CCR data for all seven years and 3-year rolling cumulative CCR for the eight companies analysed. 

5 What the eight companies show

The latest 3-year rolling CCRs are quite revealing.

DLF: 123%

Prestige Estates: 131%

Anant Raj: -17%

Sobha: 379%

Godrej Properties: -124%

Raymond Realty: -492%

Mahindra Lifespaces: -382%

Ganesh Housing: 92%

The latest 3-year rolling CCRs show a striking range, from 379 per cent for Sobha to -492 per cent for Raymond Realty.

DLF and Prestige Estates have remained above 100 per cent across all five rolling periods. Ganesh Housing is close to 100 per cent in the latest period.

At the other end, Godrej Properties, Mahindra Lifespaces and Raymond Realty have negative latest 3-year CCRs. 

Interestingly, Godrje Properties reports yearly negative cash flows for the past seven years continuously (more on this later). 

Anant Raj has also seen a sharp deterioration, from 220 per cent five years ago to -17 per cent now.

The differences are striking enough to warrant a closer look.

The rolling numbers therefore show more than just the latest year's performance. They show the direction and persistence of cash conversion.

However, a negative CCR does not always mean trouble. It can mean a company is burning cash because of poor collections. Or it can mean a company is expanding fast, buying land and building ahead of future bookings, as is the case with Godrej Properties.

Several real estate / construction companies tend to have negative operating cash flows in a single year. Hence, a deeper analysis is needed, without relying on a single metric like CCR to make informed decisions.

Why Sobha Ltd is an outlier?

As of 31Mar2026, the highest 3-year rolling cumulative CCR (of the eight companies analysed) is from Sobha at 379 per cent. This is not simply a result of one exceptional year. 

Sobha follows a vertically integrated model, with significant in-house construction and manufacturing capabilities -- not depending on landowner tie-ups. 

Backward integration: It largely develops projects directly, giving it greater control over land, construction and execution. It builds with its own contracting arm; and makes its own glazing and concrete products.

Despite lumpy real estate cash flows, it has generated positive CFO in every year of the period analysed. 

Cash collected from buyers and cash spent on construction move together.

Result: This helps explain why it has consistently generated positive CFO every year despite the inherent lumpiness of real estate cash flows.

Note: Contrast Sobha's business model with that of Godrej Properties given below. 

6 Why is Godrej Properties’ CFO persistently negative?

The cash flow statement provides an important clue. A major factor is the substantial cash tied up in inventory. 

The inventory cash outflow has risen sharply, from Rs 2,205 crore in FY 2020-21 to Rs 7,812 crore in FY 2024-25 and Rs 14,932 crore in FY 2025-26.

Other working-capital items have provided a large offset, but not enough to prevent negative CFO.

Godrej Properties keeps adding new projects and land parcels. Money goes out to build up work-in-progress, ahead of sales.

This is consistent with the nature of a rapidly expanding property developer. Cash can be committed to projects well before the associated revenue and profit are recognised. 

Under Ind AS 115, the timing of revenue recognition can differ from the timing of cash collections and project expenditure.

Real estate also has a peculiar cash-flow classification:

Land and development expenditure intended for sale to customers are generally treated as inventory. 

Therefore, cash spent building the development pipeline appears in operating cash flow. 

This can make a property developer's CFO look unusually weak while it is actually investing heavily in future projects.

For many other businesses, property and land purchases are part of cash flow investing (CFI).

For example, for a power generation company, land, plant and machinery bought for its own long-term use are generally capital assets. The cash outflow therefore appears under investing activities. 

A note on business model of Godrej Properties:

Godrej Properties relies heavily on joint development and development management arrangements with landowners, sharing revenue or area with landowners instead of buying land outright (but, its 2025-26 annual report says it is now buying land outright opportunistically as part of a "strategic pivot").

It lends heavily to its own project SPVs and joint ventures (Rs 11,784 crore as per Balance Sheet as of 31Mar2026) to fund land and construction.

The company has been adding projects very fast (Rs 42,100 crore of new business pipiline in FY 2025-26 alone) pushed inventory up by Rs 14,932 crore in FY 2025-26 (cash flow figure) and this outpaced customer collections.

Result: profit is booked on construction progress, but operating cash flow stays deeply negative due to the pace of expansion.

7 Why can real estate have such unusual CCRs?

Real estate has an added complication. Under Ind AS 115, revenue recognition depends on how and when the performance obligation is satisfied. 

Therefore, the timing of revenue and profit recognition need not match the timing of cash collections and project expenditure.

Cash can be received before the related profit appears in the accounts. Customers may make advances or progress-linked payments while a project is still being developed.

Conversely, a developer can report accounting profit while cash is being absorbed by projects, inventory and working capital.

This can create a large gap between reported profit and operating cash flow. That is one reason cash conversion can look unusually high or low in a property developer.

8 What I find most interesting

The eight companies fall into very different patterns.

DLF and Prestige Estates show strong and relatively consistent cash conversion.

Sobha has generated exceptionally high operating cash relative to reported profit.

Ganesh Housing is close to normalisation, with the latest 3-year CCR at 92 per cent.

Anant Raj shows a clear deterioration in cash conversion over the five rolling periods.

Godrej Properties, Raymond Realty and Mahindra Lifespaces show a very different picture. All three have negative latest 3-year rolling CCRs, with the latter two particularly extreme.

These differences would be difficult to appreciate from the latest year's profit numbers alone.

9 Cash is ultimately what matters

This analysis is not intended to replace revenue, earnings growth or other measures used to assess a real estate company.

It is a different lens.

For a property developer, reported profit tells us about accounting performance. Cash flow tells us what happened to the cash generated or consumed by the business.

Looking at both, over several years, can provide a more complete picture.

For investors, the key question is therefore not simply:

"How much profit did the developer report?"

It is:

"Over a reasonable period, how much of that profit is actually turning into cash?"

That is what the 3-year rolling cumulative CCR is designed to show.

Don't miss the Appendix delineating details of data on year-wise CCR and cumulative CCR.  

Note: This is an educational analysis based on reported financial data. CCR is only a single metric and should not be used on its own to judge the quality or value of a real estate company. Safe to assume the author has a vested interest in Indian financial markets. 

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Appendix: Seven-Year CCR Data for the Eight Companies >

DLF Ltd

Prestige Estate Projects

Anant Raj

Sobha Ltd

Godrej Properties

Raymond Realty

Mahindra Lifespace Developers

Ganesh Housing

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Notes:

Most companies in the FMCG and automotive sector tend to have positive operating cash flows (hence, positive CCR in most years) as cash is received upfront. 

But this is not the case with sectors, like, real estate, construction, capital goods and government-facing sectors of the Indian economy. 

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References:

Annual Report 2025-26 of Godrej Properties 

Annual Report 2025-26 of Sobha Ltd

Image courtesy: The Camellias, DLF annual report 2024-25

Godrej Properties to generate Rs 20,000 crore operating cash flow (CFO) by FY 2027-28

Nifty Indices Broad Market and Sector Review – July 2026

Nifty Indices Broad Market and Sector Review – July 2026: Nifty Indices Performance and Valuation at a glance 02Aug2026

 
Follow @vrk100
 

(This is my 530th blog since 2010. Over the years, I have covered global financial markets, with a focus on India, and continue to share insights to help readers understand complex topics in simple language.

The views expressed here are for information purposes only and should not be construed as a recommendation or investment advice. While the author is a CFA Charterholder with nearly 25 years of experience in financial markets, this content is intended to share general insights and does not constitute financial guidance. 

Please consult your financial adviser before taking any investment decision. Safe to assume the author has a vested interest in stocks / investments discussed if any.) 

Markets never move in a straight line. Some sectors lead while others slow down. Valuations also change over time. Looking at returns alone does not tell the full story.

This periodic snapshot brings together the latest performance and valuation data for the broad Nifty indices and the major market sectors. 

The aim is to understand what the numbers are saying today. It is not to predict what will happen next.

The data in this article are as on 31Jul2026, unless otherwise stated. 

This article builds on an earlier article (with data as of 30Apr2026). Please check it if you're interested. 

(article continues below)

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Related blogs:

Inside the Nifty 500 Index: How It Changed from 2021 to 2026 28Jul2026 

Nifty 500 Snapshot 30Jun2026

Nifty Valuation Tracker Series: June 2026 Update – Broad Market and Smart Beta Indices 04Jul2026 

BSE 500 Versus Nifty 500: Same Market, Different Indices 02Jan2026  (NSE Indices / Nifty Indices) (BSE Indices)

The Hidden Rotation in Indian Markets: Capex Leads, Mid/Smallcaps Rise, Financials Lag 02May026  (NSE Indices, Nifty Indices, Nifty sector indices) (Capital goods sector very broad)

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1 Broad Market Performance

Chart showing Nifty Broad Indices Trailing Returns >

The broad market delivered mixed results over different time periods.

During the last one month, Nifty Next 50 was the strongest performer with a return of 3.0 per cent. Nifty 50 also posted a healthy gain of 2.4 per cent. Nifty Microcap 250 was almost flat.

Looking at the past three months, leadership was different. Nifty Microcap 250 topped the list with a return of 9.8 per cent. Smallcaps and midcaps also performed well.

The one-year picture changes. Nifty 50 delivered a small negative return of 0.4 per cent. In contrast, Nifty Next 50 gained 10.9 per cent. Midcaps, smallcaps and microcaps also remained in positive territory.

The long-term picture continues to be encouraging. Over three, five and ten years, every broad market index has delivered positive annualised returns.

Microcaps have been the strongest long-term performers. Midcaps have also produced excellent returns. Nifty 50 has delivered comparatively lower returns, but still generated healthy double-digit annualised returns over five and ten years.

One important lesson is that market leadership keeps changing. The best-performing index over one year may not remain the best over longer periods.

2 Broad market valuations

Chart showing Nifty Broad Indices Valuation Data >

Performance tells us where the market has been. Valuations give an idea of what investors are willing to pay today.

One commonly used measure is the Price to Earnings (PE) ratio. A higher PE usually reflects stronger growth expectations. A lower PE often suggests more modest expectations.

Among the broad indices, Nifty Next 50 has the lowest PE ratio at 19.5. Nifty 50 is close behind at 20.8.

Midcap 150 trades at a PE of 30.4, while Smallcap 250 has the highest PE ratio at 34.3. Investors are therefore paying much higher prices for smaller companies.

Data for Apr-Jun2026 quarter results indicate a better show by mid- and small-cap companies for which results are announced so far. 

The Price to Book (PB) ratio tells a similar story. Midcaps have the highest PB ratio, while Nifty 50 remains more moderate.

Dividend yield also varies across the indices. Nifty 50 offers the highest dividend yield at 1.22 per cent, closely followed by Nifty Next 50.

Midcaps, smallcaps and microcaps have lower dividend yields. This is not unusual because many growing companies prefer to reinvest profits rather than distribute them as dividends.

Overall, larger companies appear more reasonably valued than smaller companies based on current market prices.

3 Sector performance

The sector analysis covers the top 10 sectors by weight in the Nifty Total Market Index as of the latest available data. The sector weights are shown in the table below.

The largest sectors by market weight provide a useful view of where market value is concentrated and how different parts of the market are performing.

Chart showing Top 10 Nifty Sectors by Weight in Nifty Total Market Index – Performance > 

As shown in the above chart, the top 10 sectors in Nifty Total Market index have a representation of 82.6 per cent in it.

Sector performance often changes much faster than broad market performance.

Auto has been one of the strongest sectors across one, three and five years. The sector continues to show broad-based strength.

Metal has delivered an impressive recovery over the past year. Telecommunications has also produced strong one-year and three-year returns.

Financial Services remains the largest sector in the market. Its long-term returns have been steady rather than spectacular.

Capital Goods has delivered excellent long-term performance, although it has seen weakness over the past month.

Healthcare has remained resilient across most time periods.

Not every sector has performed well recently. FMCG, Consumer Services and IT have recorded weaker one-year returns.

A month ago, few expected Nifty IT to bounce back with a 17 per cent return after years of weak performance. This shows market leadership can change quickly even after a prolonged period of underperformance. 

Just a month ago, many investors had written off India's IT sector. 😃

The key thing is simple. Different sectors perform well at different stages of the market cycle. Leadership keeps changing.

4 Sector valuations

Chart showing Top 10 Nifty Sectors by Weight in Nifty Total Market Index – Valuations >

Sector valuations show where investor expectations are highest.

Financial Services has one of the lowest PE ratios at 16.5. Oil and Gas also trades at a relatively low PE of 10.8.

At the other end of the spectrum, Capital Goods and Healthcare trade at PE ratios above 45. Investors appear willing to pay a premium for their expected future growth.

Dividend yields also differ across sectors.

IT and Oil and Gas offer the highest dividend yields among the major sectors.

Consumer Services offers the lowest dividend yield.

High valuations do not automatically mean a sector is overvalued. Likewise, low valuations do not guarantee better future returns. Valuations simply reflect what the market currently expects.

5 Market monitor

Broad index with the strongest one-month return:

Nifty Next 50

Broad index with the strongest three-month return:

Nifty Microcap 250

Best one-year broad market performer:

Nifty Next 50

Highest long-term performer:

Nifty Microcap 250

Lowest PE among broad indices:

Nifty Next 50

Highest PE among broad indices:

Nifty Smallcap 250

Highest dividend yield among broad indices:

Nifty 50

Strongest sectors over one year:

Auto, Metal and Telecommunications

Lowest sector PE:

Oil and Gas

Highest sector PE:

Capital Goods and Healthcare

Highest sector dividend yield:

IT

6 Key Takeaways

Short-term market leadership changes frequently.

Smaller companies have delivered stronger long-term returns than large companies, but they also trade at much higher valuations.

Large-cap indices currently offer relatively lower valuations and higher dividend yields.

Sector leadership keeps changing. Investors should avoid assuming that today's winning sector will remain the winner tomorrow.

Looking at both performance and valuations provides a better understanding of market conditions than focusing on either one alone.

One interesting thing about markets is that today's leaders are not always tomorrow's leaders. A few sectors currently outside the top 10 in the index may outperform in the future and gradually climb the rankings. 

That is why it is useful to keep an eye on the wider market, not just today's largest sectors.

7 Final Thoughts

Markets are dynamic. Every month / quarter brings new winners, new laggards and changing valuations.

That is why it is useful to review the data regularly instead of relying on headlines or short-term market moves.

The purpose of this periodic review is to provide a simple, data-based view of the market. Over time, these updates will also help readers see how trends evolve across market cycles.

In the next edition, we will compare the latest numbers with this month's data and see what has changed.

This article is meant purely for educational purposes. It is not investment advice or a recommendation to buy or sell any security, index or mutual fund. 

Past performance does not guarantee future returns. Please do your own research or consult a qualified financial adviser before making investment decisions.

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References:

NSE India introduced 11 new sectoral indices in Jun2026. These indices provide a more consistent way to analyse sector performance and their weights in the Nifty Total Market Index. 

Earlier, some sectors, such as Capital Goods, Telecommunications and Consumer Services did not have a dedicated sectoral index, making comparisons less straightforward.

Collected Notes 2026 >

Nifty Total Market Index (750 stocks) factsheet > screenshot >

Nifty 500 factsheet

NSE Index dashboard Jul2026

Nifty Return Profile

Nifty Index factsheets 

Inside the Nifty 500 Index: How It Changed from 2021 to 2026 28Jul2026

Inside the Nifty 500 Index: How It Changed from 2021 to 2026   28Jul2026

 
Follow @vrk100
 

(This is my 529th blog since 2010. Over the years, I have covered global financial markets, with a focus on India, and continue to share insights to help readers understand complex topics in simple language.

The views expressed here are for information purposes only and should not be construed as a recommendation or investment advice. While the author is a CFA Charterholder with nearly 25 years of experience in financial markets, this content is intended to share general insights and does not constitute financial guidance. 

Please consult your financial adviser before taking any investment decision. Safe to assume the author has a vested interest in stocks / investments discussed if any.) 

1 Introduction

The Nifty 500 tracks 500 of India's listed companies across large-cap, mid-cap and small-cap segments. Together, they represent a large part of the country's stock market.

The index changes every six months as companies grow, shrink or become more valuable. Looking at six years of data shows how India's corporate landscape has evolved.

Three trends stand out. The biggest companies have become less dominant. Sector leadership has shifted. Yet a handful of companies have remained at the top throughout.

(article continues below)

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Related blogs:

Nifty 500 Snapshot 30Jun2026

BSE 500 Versus Nifty 500: Same Market, Different Indices 02Jan2026  (NSE Indices / Nifty Indices) (BSE Indices)

The Hidden Rotation in Indian Markets: Capex Leads, Mid/Smallcaps Rise, Financials Lag 02May026  (NSE Indices, Nifty Indices, Nifty sector indices) (Capital goods sector very broad)

RBI’s New Comfort with Foreign Capital Spurs FDI Turnaround in India’s Financial Sector 17Jan2026  (Dominance of Financial Services Sector)

NSE Emerging Indices Fundamentals Comparison 30Jun2025 (Nifty Emerging Indices) (includes bonus charts wrt Nifty 50 vs Nifty Next 50 comparison) (NSE Indices / Nifty Indices)  (Dominance of Financial Services Sector)

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2 Top 10 companies in the Nifty 500 by weight (June 2021 to June 2026)

(click on the chart to view better)

The biggest companies no longer dominate:

The largest companies still lead the index. But they account for a much smaller share than they did six years ago.

In June 2021, the top 10 companies made up 39.2 per cent of the Nifty 500. By June 2026, their share had fallen to 29.9 per cent.

The top five companies also became less dominant. Their combined weight declined from 27.5 per cent to 21.1 per cent.

This means the index has become broader. More companies now contribute to overall market performance.

The Nifty 500 has become less concentrated over the past six years, reducing concentration risk.

Banks have taken the lead:

Leadership within the top 10 has also changed.

Reliance Industries was the largest stock in Jun2021. By Jun2026, HDFC Bank had taken the top position, followed by ICICI Bank.

HDFC Ltd, one of the largest companies in the index, merged with HDFC Bank in Jul2023. While the merger created India's largest private sector bank, its weight has gradually declined since then as the bank dealt with post-merger integration, business headwinds and increased investor scrutiny following corporate governance-related developments.

As of Jun2023, the combined weight of HDFC Bank and HDFC Ltd was 10.7 per cent, but three years later it got slashed to just 6.2 per cent, highlighting the troubles the merged entity has faced over the past three years. 

Bharti Airtel climbed steadily and entered the top four by 2026.

State Bank of India also moved into the top 10 after being outside it for much of the period.

Meanwhile, Infosys, TCS, ITC and Kotak Mahindra Bank now account for a smaller share of the index than they did a few years ago.

These changes reflect how investor preferences have shifted over time.

3 Weight trends of companies that appeared in the Nifty 500 top 10 at least once between 2021 and 2026

(click on the chart to view better)

Some companies stay at the top for years:

Although the rankings change every year, very few companies manage to stay among the leaders.

Only five companies remained in the top 10 throughout all six years.

They are HDFC Bank, ICICI Bank, Reliance Industries, Larsen & Toubro and Infosys.

Across the six-year period, only 13 companies appeared in the top 10 even once.

This is interesting. Market leadership changes, but it changes gradually. The same group of companies continues to dominate, even as their rankings shift.

(Sidenote: As observed with Nifty 50 index, there in not much churn among the top stocks in either Nifty 50 or Nifty 500 index over the years. "Despite the narrative of constant churn, the core of the Nifty 50 has changed surprisingly little over the past decade. Most of the top constituents remain familiar names, with only limited reshuffling at the very top, such as Sun Pharma exiting and Mahindra & Mahindra entering." Check the blog 29Jul2025 and tweet 08Jan2026)

4 Top sector weights in the Nifty 500 (June 2021 to June 2026)

(click on the chart to view better)

Sector leadership is changing:

Financial Services remained the largest sector throughout the period.

Its weight increased from 30.4 per cent in Jun2021 to 31.6 per cent in Jun2026. Banks and other financial companies have become even more important to the Indian market.

Information Technology tells the opposite story.

Its weight fell sharply from 13.3 per cent to 5.7 per cent over the same period. This reflects the weaker performance of large IT companies after the strong gains seen during and immediately after the pandemic.

New sectors are gaining importance:

Several sectors increased their presence in the index.

Capital Goods nearly tripled its weight over six years. Healthcare also expanded. Automobile and Auto Components strengthened steadily.

Telecommunication entered the top 10 sectors by 2025, helped by Bharti Airtel's rise.

The market is becoming more balanced across industries instead of relying on just a few sectors.

The index is more diversified today:

The biggest sectors also account for a smaller share of the index than before.

The top three sectors represented 53.1 per cent of the index in Jun2021. By Jun2026, they accounted for 46.2 per cent.

The top five sectors declined from 65.9 per cent to 60.4 per cent.

Just as the biggest companies have become less dominant, the market has also become less dependent on a handful of sectors.

5 Final takeaway

The Nifty 500 of 2026 looks quite different from the one in 2021, though the top 10 to 15 stocks have remained the same.

Banks have strengthened their position. Technology has lost some of its dominance. Infrastructure, healthcare and manufacturing-related sectors have become more important.

At the same time, the index has become less concentrated. The largest companies and sectors now occupy a smaller share of the market than they did six years ago.

Perhaps the biggest lesson is that markets evolve continuously. Some companies rise, others fall and new leaders emerge. 

Of the total market capitalisation of nearly Rs 475 lakh crore of NSE listed companies, the market cap of Nifty 500 companies is roughly Rs 419 lakh crore.

In practice, with a share of 88 per cent of the NSE total market cap, the Nifty 500 is widely regarded as a representative index of the Indian equity market and is often used as a proxy for Indian stocks.

A broad index such as the Nifty 500 captures these changes and provides a useful window into how India's economy is changing.

- - -

 

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References:

Nifty 500 factsheet

Motilal Oswal MF factsheets (historical also)

Rupee Vest Motilal Oswal Nifty 500 Index Fund

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Additional notes:

Stocks that dropped out (versus previous year, chronologically):

Jun-2021 -> Jun-2022: Axis Bank

Jun-2022 -> Jun-2023: Hindustan Unilever

Jun-2023 -> Jun-2024: HDFC Ltd, Kotak Mahindra Bank

Jun-2024 -> Jun-2025: State Bank of India

Jun-2025 -> Jun-2026: TCS

Sectors that dropped out (versus previous year, chronologically):

Jun-2022 -> Jun-2023: Construction Materials, Power

Jun-2023 -> Jun-2024: Construction

Jun-2024 -> Jun-2025: Power

Jun-2025 -> Jun-2026: None

Rebalancing frequency: The Nifty 500 is reviewed and rebalanced twice a year, with changes taking effect at the end of March and September. The June snapshots used in this article therefore reflect the March rebalancing for that year.

Screenshots with data of Nifty 500 index from Jun2021 to Jun2026 :

Additional screenshots for Nifty 500 data from Dec2021 to Dec2025 >

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