Balkrishna Industries Limited Just Beat Revenue Estimates By 7.8%

It's been a sad week for Balkrishna Industries Limited (NSE:BALKRISIND), who've watched their investment drop 12% to ₹2,781 in the week since the company reported its quarterly result. It was a workmanlike result, with revenues of ₹27b coming in 7.8% ahead of expectations, and statutory earnings per share of ₹76.12, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Balkrishna Industries

Taking into account the latest results, the current consensus from Balkrishna Industries' 19 analysts is for revenues of ₹104.8b in 2025. This would reflect an okay 5.6% increase on its revenue over the past 12 months. Statutory per share are forecast to be ₹85.77, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹106.1b and earnings per share (EPS) of ₹88.93 in 2025. 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.

The consensus price target held steady at ₹2,858, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Balkrishna Industries at ₹3,503 per share, while the most bearish prices it at ₹2,135. 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 Balkrishna Industries shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Balkrishna Industries' revenue growth is expected to slow, with the forecast 7.5% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Balkrishna Industries.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Balkrishna Industries. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Balkrishna Industries' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Balkrishna Industries going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Balkrishna Industries you should know about.

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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.