Balkrishna Industries Limited Just Recorded A 26% EPS Beat: Here's What Analysts Are Forecasting Next

Balkrishna Industries Limited (NSE:BALKRISIND) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like a credible result overall - although revenues of ₹26b were what the analysts expected, Balkrishna Industries surprised by delivering a (statutory) profit of ₹23.25 per share, an impressive 26% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Balkrishna Industries after the latest results.

Check out our latest analysis for Balkrishna Industries

Taking into account the latest results, the current consensus from Balkrishna Industries' 13 analysts is for revenues of ₹118.7b in 2026. This would reflect a solid 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 15% to ₹106. Before this earnings report, the analysts had been forecasting revenues of ₹116.5b and earnings per share (EPS) of ₹101 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of ₹2,874, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Balkrishna Industries analyst has a price target of ₹3,401 per share, while the most pessimistic values it at ₹2,136. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would highlight that Balkrishna Industries' revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2026 being well below the historical 16% p.a. growth over the last five years. Compare this to the 129 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 10% per year. So it's pretty clear that, while Balkrishna Industries' revenue growth is expected to slow, it's expected to grow roughly in line with the 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. 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 ₹2,874, with the latest estimates not enough to have an impact on their price targets.

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.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Balkrishna Industries 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.