Earnings Miss: Dalmia Bharat Limited Missed EPS By 9.8% And Analysts Are Revising Their Forecasts

Dalmia Bharat Limited (NSE:DALBHARAT) shareholders are probably feeling a little disappointed, since its shares fell 7.4% to ₹1,800 in the week after its latest full-year results. Revenues of ₹147b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹44.03, missing estimates by 9.8%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Dalmia Bharat

After the latest results, the 25 analysts covering Dalmia Bharat are now predicting revenues of ₹160.7b in 2025. If met, this would reflect a decent 9.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 30% to ₹57.47. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹166.1b and earnings per share (EPS) of ₹65.95 in 2025. 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.

Despite the cuts to forecast earnings, there was no real change to the ₹2,352 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Dalmia Bharat analyst has a price target of ₹2,940 per share, while the most pessimistic values it at ₹1,146. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 9.4% growth on an annualised basis. That is in line with its 10.0% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 4.0% annually. So it's clear that not only is revenue growth expected to be maintained, but Dalmia Bharat is expected to grow meaningfully 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 Dalmia Bharat. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. The consensus price target held steady at ₹2,352, 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. We have estimates - from multiple Dalmia Bharat analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Dalmia Bharat that we have uncovered.

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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.