PCBL Chemical Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, PCBL Chemical Limited (NSE:PCBL) last week released its latest third-quarter, and things did not turn out so great for shareholders. PCBL Chemical missed earnings this time around, with ₹20b revenue coming in 3.5% below what the analysts had modelled. Statutory earnings per share (EPS) of ₹2.50 also fell short of expectations by 12%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for PCBL Chemical

Taking into account the latest results, the consensus forecast from PCBL Chemical's nine analysts is for revenues of ₹95.5b in 2026. This reflects a meaningful 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 49% to ₹17.59. In the lead-up to this report, the analysts had been modelling revenues of ₹99.1b and earnings per share (EPS) of ₹19.93 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

The consensus price target fell 7.7% to ₹489, with the weaker earnings outlook clearly leading valuation estimates. 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 PCBL Chemical analyst has a price target of ₹627 per share, while the most pessimistic values it at ₹397. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that PCBL Chemical's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2026 being well below the historical 22% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% annually. So it's pretty clear that, while PCBL Chemical's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for PCBL Chemical. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for PCBL Chemical going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with PCBL Chemical (at least 1 which doesn't sit too well with us) , and understanding these should be part of your investment process.

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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.