Rallis India Limited Just Missed Earnings - But Analysts Have Updated Their Models

Rallis India Limited (NSE:RALLIS) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues were in line with forecasts, at ₹27b, although statutory earnings per share came in 16% below what the analysts expected, at ₹6.43 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Rallis India after the latest results.

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Taking into account the latest results, the current consensus from Rallis India's 14 analysts is for revenues of ₹29.5b in 2026. This would reflect a meaningful 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 42% to ₹9.15. In the lead-up to this report, the analysts had been modelling revenues of ₹30.3b and earnings per share (EPS) of ₹10.32 in 2026. 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.

View our latest analysis for Rallis India

It'll come as no surprise then, to learn that the analysts have cut their price target 9.0% to ₹235. 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 ₹320 per share, while the most pessimistic values it at ₹176. 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.

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 clear from the latest estimates that Rallis India's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.8% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Rallis India is expected to grow at about the same rate as 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 Rallis India. 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.

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 2028, 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 1 warning sign with Rallis India , and understanding it 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.