Earnings Miss: Tata Consumer Products Limited Missed EPS By 12% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that Tata Consumer Products Limited (NSE:TATACONSUM) filed its first-quarter result this time last week. The early response was not positive, with shares down 3.8% to ₹1,054 in the past week. It was not a great result overall. While revenues of ₹48b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 12% to hit ₹3.37 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Tata Consumer Products' 26 analysts is for revenues of ₹195.2b in 2026. This would reflect a decent 8.2% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 27% to ₹16.92. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹195.7b and earnings per share (EPS) of ₹17.62 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Tata Consumer Products

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,206, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Tata Consumer Products analyst has a price target of ₹1,340 per share, while the most pessimistic values it at ₹1,065. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 11% 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 9.5% per year. So although Tata Consumer Products is expected to maintain its revenue growth rate, it's only growing at about the rate of 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 Tata Consumer Products. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at ₹1,206, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Tata Consumer Products going out to 2028, and you can see them free on our platform here..

You can also see our analysis of Tata Consumer Products' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.