Earnings Miss: Apollo Tyres Limited Missed EPS By 16% And Analysts Are Revising Their Forecasts

The yearly results for Apollo Tyres Limited (NSE:APOLLOTYRE) were released last week, making it a good time to revisit its performance. It was not a great result overall. While revenues of ₹261b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 16% to hit ₹17.66 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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After the latest results, the 23 analysts covering Apollo Tyres are now predicting revenues of ₹279.0b in 2026. If met, this would reflect a reasonable 6.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 55% to ₹27.37. In the lead-up to this report, the analysts had been modelling revenues of ₹279.1b and earnings per share (EPS) of ₹27.36 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Apollo Tyres

The analysts reconfirmed their price target of ₹523, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Apollo Tyres analyst has a price target of ₹600 per share, while the most pessimistic values it at ₹399. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against 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 6.8% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Apollo Tyres.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹523, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Apollo Tyres analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Apollo Tyres that you need to be mindful 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.