Apollo Tyres Limited Just Missed EPS By 96%: Here's What Analysts Think Will Happen Next

Explore Apollo Tyres's Fair Values from the Community and select yours

Last week saw the newest first-quarter earnings release from Apollo Tyres Limited (NSE:APOLLOTYRE), an important milestone in the company's journey to build a stronger business. It looks like a pretty bad result, all things considered. Although revenues of ₹66b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 96% to hit ₹0.20 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Apollo Tyres' 22 analysts are now forecasting revenues of ₹279.0b in 2026. This would be a modest 5.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 96% to ₹25.69. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹278.9b and earnings per share (EPS) of ₹27.28 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Apollo Tyres

The consensus price target held steady at ₹517, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Apollo Tyres at ₹600 per share, while the most bearish prices it at ₹399. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Apollo Tyres shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Apollo Tyres' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.9% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.8% annually. Factoring in the forecast slowdown in growth, it looks like Apollo Tyres is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Apollo Tyres. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹517, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Apollo Tyres going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Apollo Tyres that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.