Earnings Miss: Grindwell Norton Limited Missed EPS By 9.9% And Analysts Are Revising Their Forecasts

It's been a sad week for Grindwell Norton Limited (NSE:GRINDWELL), who've watched their investment drop 15% to ₹1,604 in the week since the company reported its third-quarter result. It looks like the results were a bit of a negative overall. While revenues of ₹7.0b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 9.9% to hit ₹7.84 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Grindwell Norton

Following the latest results, Grindwell Norton's four analysts are now forecasting revenues of ₹32.9b in 2026. This would be a decent 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 19% to ₹39.62. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹33.9b and earnings per share (EPS) of ₹44.53 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

The consensus price target fell 7.4% to ₹2,177, with the weaker earnings outlook clearly leading valuation estimates. 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 Grindwell Norton at ₹2,516 per share, while the most bearish prices it at ₹1,698. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Grindwell Norton shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Grindwell Norton's past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 13% per year. It's clear that while Grindwell Norton's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Grindwell Norton. Long-term earnings power is much more important than next year's profits. We have forecasts for Grindwell Norton going out to 2027, and you can see them free on our platform here.

Even so, be aware that Grindwell Norton is showing 1 warning sign in our investment analysis , 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.