Tata Motors Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Tata Motors Limited (NSE:TATAMOTORS) shareholders, because the company has just released its latest yearly results, and the shares gained 6.6% to ₹728. Revenues were ₹4.4t, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹78.75, an impressive 36% ahead of estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Our free stock report includes 1 warning sign investors should be aware of before investing in Tata Motors. Read for free now.

After the latest results, the 26 analysts covering Tata Motors are now predicting revenues of ₹4.52t in 2026. If met, this would reflect an okay 2.8% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹4.68t and earnings per share (EPS) of ₹62.37 in 2026. Overall, while there's been a small dip in 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.

See our latest analysis for Tata Motors

There's been no real change to the consensus price target of ₹804, with Tata Motors seemingly executing in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Tata Motors at ₹1,300 per share, while the most bearish prices it at ₹600. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Tata Motors' revenue growth is expected to slow, with the forecast 2.8% annualised growth rate until the end of 2026 being well below the historical 15% 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 7.5% 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 Tata Motors.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for Tata Motors next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates it is expected to perform worse than the wider 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.

We have estimates for Tata Motors from its 26 analysts out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Tata Motors 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.