Balkrishna Industries Limited Just Missed Earnings - But Analysts Have Updated Their Models

It's shaping up to be a tough period for Balkrishna Industries Limited (NSE:BALKRISIND), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹23b, statutory earnings missed forecasts by 10%, coming in at just ₹15.80 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Balkrishna Industries

After the latest results, the 17 analysts covering Balkrishna Industries are now predicting revenues of ₹107.7b in 2025. If met, this would reflect a solid 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 42% to ₹91.62. In the lead-up to this report, the analysts had been modelling revenues of ₹106.0b and earnings per share (EPS) of ₹86.80 in 2025. So the consensus seems to have become somewhat more optimistic on Balkrishna Industries' earnings potential following these results.

There's been no major changes to the consensus price target of ₹2,510, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Balkrishna Industries at ₹2,986 per share, while the most bearish prices it at ₹1,899. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Balkrishna Industries' past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 18% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that Balkrishna Industries is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Balkrishna Industries following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at ₹2,510, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Balkrishna Industries. Long-term earnings power is much more important than next year's profits. We have forecasts for Balkrishna Industries going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Balkrishna Industries 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.