Rallis India Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Rallis India Limited (NSE:RALLIS) just released its latest third-quarter report and things are not looking great. Unfortunately, Rallis India delivered a serious earnings miss. Revenues of ₹5.2b were 16% below expectations, and statutory earnings per share of ₹0.56 missed estimates by 68%. 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.

View our latest analysis for Rallis India

After the latest results, the 13 analysts covering Rallis India are now predicting revenues of ₹31.2b in 2026. If met, this would reflect a decent 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 57% to ₹11.00. Before this earnings report, the analysts had been forecasting revenues of ₹32.9b and earnings per share (EPS) of ₹12.00 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The consensus price target fell 5.7% to ₹277, with the weaker earnings outlook clearly leading valuation estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Rallis India analyst has a price target of ₹369 per share, while the most pessimistic values it at ₹179. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Rallis India's growth to accelerate, with the forecast 13% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 13% per year. Rallis India is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Rallis India's future valuation.

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 Rallis India analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Rallis India that you need to take into consideration.

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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.