Earnings Miss: Tata Motors Limited Missed EPS By 6.6% And Analysts Are Revising Their Forecasts

It's shaping up to be a tough period for Tata Motors Limited (NSE:TATAMOTORS), which a week ago released some disappointing quarterly results that could have a notable impact on how the market views the stock. Tata Motors missed analyst forecasts, with revenues of ₹1.1t and statutory earnings per share (EPS) of ₹14.80, falling short by 2.9% and 6.6% respectively. 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.

View our latest analysis for Tata Motors

After the latest results, the 31 analysts covering Tata Motors are now predicting revenues of ₹4.78t in 2026. If met, this would reflect a satisfactory 8.0% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹4.91t and earnings per share (EPS) of ₹70.51 in 2026. Overall, while there's been a minor downgrade to revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important following the latest results.

Intriguingly,the analysts have cut their price target 6.7% to ₹888 showing a clear decline in sentiment around Tata Motors' 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 Tata Motors at ₹1,300 per share, while the most bearish prices it at ₹660. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. It's pretty clear that there is an expectation that Tata Motors' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.3% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Tata Motors is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

At least one of Tata Motors' 31 analysts has provided estimates out to 2027, which can be seen for free on our platform here.

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