Titan Company Limited Just Missed Earnings - But Analysts Have Updated Their Models

Investors in Titan Company Limited (NSE:TITAN) had a good week, as its shares rose 5.1% to close at ₹3,510 following the release of its annual results. Titan beat revenue expectations by 4.2%, at ₹609b. Statutory earnings per share (EPS) came in at ₹37.61, some 5.1% short of analyst estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the 15 analysts covering Titan are now predicting revenues of ₹654.4b in 2026. If met, this would reflect an okay 7.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 40% to ₹52.63. In the lead-up to this report, the analysts had been modelling revenues of ₹683.0b and earnings per share (EPS) of ₹53.64 in 2026. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

See our latest analysis for Titan

The consensus has reconfirmed its price target of ₹3,781, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Titan's market value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Titan analyst has a price target of ₹4,540 per share, while the most pessimistic values it at ₹3,041. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Titan's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.4% growth on an annualised basis. This is compared to a historical growth rate of 25% 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 14% per year. Factoring in the forecast slowdown in growth, it seems obvious that Titan is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings per share are more important to value creation for shareholders. The consensus price target held steady at ₹3,781, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Titan. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Titan going out to 2028, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Titan (at least 1 which is significant) , and understanding them should be part of your investment process.

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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.