Earnings Miss: Bharat Forge Limited Missed EPS By 11% And Analysts Are Revising Their Forecasts

The quarterly results for Bharat Forge Limited (NSE:BHARATFORG) were released last week, making it a good time to revisit its performance. It was not a great result overall. Although revenues beat expectations, hitting ₹39b, statutory earnings missed analyst forecasts by 11%, coming in at just ₹5.93 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Bharat Forge's 23 analysts is for revenues of ₹160.8b in 2026. This would reflect a satisfactory 7.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 23% to ₹26.23. Before this earnings report, the analysts had been forecasting revenues of ₹163.3b and earnings per share (EPS) of ₹29.14 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

Check out our latest analysis for Bharat Forge

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,170, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. There are some variant perceptions on Bharat Forge, with the most bullish analyst valuing it at ₹1,800 and the most bearish at ₹870 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 Bharat Forge's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.7% annually. So it's pretty clear that, while Bharat Forge's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Bharat Forge. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for Bharat Forge going out to 2028, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Bharat Forge 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.