GMM Pfaudler Limited Just Missed EPS By 59%: Here's What Analysts Think Will Happen Next

GMM Pfaudler Limited (NSE:GMMPFAUDLR) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. It looks like a pretty bad result, all things considered. Although revenues of ₹32b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 59% to hit ₹11.78 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

We've discovered 2 warning signs about GMM Pfaudler. View them for free.

Following the latest results, GMM Pfaudler's lone analyst are now forecasting revenues of ₹33.2b in 2026. This would be an okay 2.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 197% to ₹35.00. Before this earnings report, the analyst had been forecasting revenues of ₹34.4b and earnings per share (EPS) of ₹43.20 in 2026. The analyst seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

See our latest analysis for GMM Pfaudler

The average price target climbed 32% to ₹1,950despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the GMM Pfaudler's past performance and to peers in the same industry. It's pretty clear that there is an expectation that GMM Pfaudler's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.9% growth on an annualised basis. This is compared to a historical growth rate of 27% 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 12% 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 GMM Pfaudler.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for GMM Pfaudler. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for GMM Pfaudler going out as far as 2028, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for GMM Pfaudler that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.