Earnings Miss: PVR INOX Limited Missed EPS By 50% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that PVR INOX Limited (NSE:PVRINOX) filed its third-quarter result this time last week. The early response was not positive, with shares down 3.2% to ₹1,088 in the past week. Statutory earnings per share fell badly short of expectations, coming in at ₹3.66, some 50% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹17b. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for PVR INOX

After the latest results, the 21 analysts covering PVR INOX are now predicting revenues of ₹71.6b in 2026. If met, this would reflect a huge 24% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with PVR INOX forecast to report a statutory profit of ₹34.01 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹74.6b and earnings per share (EPS) of ₹45.58 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

The consensus price target fell 11% to ₹1,588, with the weaker earnings outlook clearly leading valuation estimates. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values PVR INOX at ₹2,065 per share, while the most bearish prices it at ₹1,075. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that PVR INOX's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 31% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% per year. So it's pretty clear that, while PVR INOX's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than 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 PVR INOX's future valuation.

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 PVR INOX going out to 2027, and you can see them free on our platform here..

You can also view our analysis of PVR INOX's balance sheet, and whether we think PVR INOX is carrying too much debt, for free 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.