JK Tyre & Industries Limited Just Missed EPS By 13%: Here's What Analysts Think Will Happen Next

It's been a pretty great week for JK Tyre & Industries Limited (NSE:JKTYRE) shareholders, with its shares surging 13% to ₹383 in the week since its latest full-year results. It was not a great result overall. While revenues of ₹148b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 13% to hit ₹18.05 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.

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After the latest results, the six analysts covering JK Tyre & Industries are now predicting revenues of ₹158.1b in 2026. If met, this would reflect a credible 7.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 52% to ₹27.38. Before this earnings report, the analysts had been forecasting revenues of ₹157.8b and earnings per share (EPS) of ₹28.02 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

See our latest analysis for JK Tyre & Industries

Despite cutting their earnings forecasts,the analysts have lifted their price target 12% to ₹413, suggesting that these impacts are not expected to weigh on the stock's value in the long term. 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. Currently, the most bullish analyst values JK Tyre & Industries at ₹460 per share, while the most bearish prices it at ₹316. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 JK Tyre & Industries' revenue growth is expected to slow, with the forecast 7.0% annualised growth rate until the end of 2026 being well below the historical 13% 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 8.7% 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 JK Tyre & Industries.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 JK Tyre & Industries going out to 2028, and you can see them free on our platform here..

You still need to take note of risks, for example - JK Tyre & Industries has 3 warning signs (and 1 which is concerning) we think 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.