Rallis India Limited Just Recorded A 41% EPS Beat: Here's What Analysts Are Forecasting Next

As you might know, Rallis India Limited (NSE:RALLIS) just kicked off its latest first-quarter results with some very strong numbers. The company beat forecasts, with revenue of ₹9.6b, some 9.3% above estimates, and statutory earnings per share (EPS) coming in at ₹4.89, 41% ahead of expectations. 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. 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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Taking into account the latest results, the consensus forecast from Rallis India's 14 analysts is for revenues of ₹30.4b in 2026. This reflects an okay 7.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 18% to ₹10.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹29.6b and earnings per share (EPS) of ₹9.40 in 2026. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice gain to earnings per share in particular.

View our latest analysis for Rallis India

With these upgrades, we're not surprised to see that the analysts have lifted their price target 21% to ₹288per share. 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 Rallis India analyst has a price target of ₹360 per share, while the most pessimistic values it at ₹202. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 9.6% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.4% 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. So it's clear that despite the acceleration in growth, Rallis India is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Rallis India's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. We have estimates - from multiple Rallis India analysts - going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Rallis India that you should be aware of.

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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.