Linde India Limited Recorded A 23% Miss On Revenue: Analysts Are Revisiting Their Models

Linde India Limited (NSE:LINDEINDIA) shareholders are probably feeling a little disappointed, since its shares fell 2.7% to ₹6,016 in the week after its latest third-quarter results. Revenues were ₹6.1b, 23% shy of what the analysts were expecting, although statutory earnings of ₹50.90 per share were roughly in line with what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Linde India

Following the latest results, Linde India's two analysts are now forecasting revenues of ₹37.8b in 2026. This would be a huge 50% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 42% to ₹73.55. Before this earnings report, the analysts had been forecasting revenues of ₹43.1b and earnings per share (EPS) of ₹83.32 in 2026. Indeed, we can see that the analysts are a lot more bearish about Linde India's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 8.9% to ₹7,206, with the weaker earnings outlook clearly leading valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Linde India's rate of growth is expected to accelerate meaningfully, with the forecast 38% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 13% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Linde India is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Linde India. They also downgraded Linde India's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Linde India. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.