Earnings Miss: Apollo Tyres Limited Missed EPS By 20% And Analysts Are Revising Their Forecasts

Last week, you might have seen that Apollo Tyres Limited (NSE:APOLLOTYRE) released its quarterly result to the market. The early response was not positive, with shares down 3.2% to ₹475 in the past week. Revenues were in line with forecasts, at ₹64b, although statutory earnings per share came in 20% below what the analysts expected, at ₹4.68 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Apollo Tyres

Following the latest results, Apollo Tyres' 26 analysts are now forecasting revenues of ₹267.1b in 2025. This would be a modest 5.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 2.1% to ₹23.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹271.8b and earnings per share (EPS) of ₹27.69 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at ₹542, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 ₹635 per share, while the most pessimistic values it at ₹410. 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.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 11% per year. It's clear that while Apollo Tyres' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹542, 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. At Simply Wall St, we have a full range of analyst estimates for Apollo Tyres going out to 2027, and you can see them free on our platform here..

You can also see whether Apollo Tyres is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.