Earnings Miss: Greenlam Industries Limited Missed EPS By 24% And Analysts Are Revising Their Forecasts

The analysts might have been a bit too bullish on Greenlam Industries Limited (NSE:GREENLAM), given that the company fell short of expectations when it released its quarterly results last week. Results showed a clear earnings miss, with ₹5.6b revenue coming in 5.3% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹1.98 missed the mark badly, arriving some 24% below what was expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Greenlam Industries

Taking into account the latest results, the current consensus from Greenlam Industries' eleven analysts is for revenues of ₹30.2b in 2025. This would reflect a huge 36% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 30% to ₹14.55. In the lead-up to this report, the analysts had been modelling revenues of ₹31.1b and earnings per share (EPS) of ₹15.86 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of ₹595, suggesting the downgrades are not expected to have a long-term impact on Greenlam Industries' valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Greenlam Industries at ₹680 per share, while the most bearish prices it at ₹500. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Greenlam Industries' past performance and to peers in the same industry. The analysts are definitely expecting Greenlam Industries' growth to accelerate, with the forecast 28% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Greenlam Industries to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Greenlam Industries. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at ₹595, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Greenlam Industries going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Greenlam Industries (1 is significant!) that you need to be mindful 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.