Tilaknagar Industries Ltd. (NSE:TI) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders might have noticed that Tilaknagar Industries Ltd. (NSE:TI) filed its second-quarter result this time last week. The early response was not positive, with shares down 2.7% to ₹488 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at ₹4.0b, statutory earnings were in line with expectations, at ₹11.81 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tilaknagar Industries after the latest results.

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Following the recent earnings report, the consensus from dual analysts covering Tilaknagar Industries is for revenues of ₹16.3b in 2026. This implies a small 5.7% decline in revenue compared to the last 12 months. Statutory earnings per share are forecast to fall 11% to ₹11.70 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹18.8b and earnings per share (EPS) of ₹10.10 in 2026. There's been a definite change in sentiment after these results, with the analysts delivering a a small to next year's revenue estimates, while at the same time substantially upgrading EPS. It's almost as though the business is anticipated to reduce its focus on growth to enhance profitability.

Check out our latest analysis for Tilaknagar Industries

The average price target rose 39% to ₹607, with the analysts signalling that the improved earnings outlook is the key driver of value for shareholders - enough to offset the reduction in revenue estimates.

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. We would highlight that revenue is expected to reverse, with a forecast 11% annualised decline to the end of 2026. That is a notable change from historical growth of 22% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 12% per year. It's pretty clear that Tilaknagar Industries' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Tilaknagar Industries following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Tilaknagar Industries. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Tilaknagar Industries going out as far as 2028, and you can see them free on our platform here.

Even so, be aware that Tilaknagar Industries 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.