Hindalco Industries Limited Just Missed Earnings - But Analysts Have Updated Their Models

Hindalco Industries Limited (NSE:HINDALCO) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Hindalco Industries beat revenue expectations by 7.3%, at ₹642b. Statutory earnings per share (EPS) came in at ₹18.00, some 7.7% short of analyst estimates. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following last week's earnings report, Hindalco Industries' 25 analysts are forecasting 2026 revenues to be ₹2.48t, approximately in line with the last 12 months. Statutory earnings per share are forecast to drop 12% to ₹66.95 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹2.46t and earnings per share (EPS) of ₹67.31 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Hindalco Industries

There were no changes to revenue or earnings estimates or the price target of ₹747, suggesting that the company has met expectations in its recent result. 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. The most optimistic Hindalco Industries analyst has a price target of ₹875 per share, while the most pessimistic values it at ₹600. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Hindalco Industries' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.0% growth on an annualised basis. This is compared to a historical growth rate of 13% 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 10% per year. Factoring in the forecast slowdown in growth, it seems obvious that Hindalco Industries 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 plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Hindalco Industries analysts - going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Hindalco Industries (1 is a bit concerning!) 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.