Earnings Miss: Tarsons Products Limited Missed EPS By 25% And Analysts Are Revising Their Forecasts

Tarsons Products Limited (NSE:TARSONS) shareholders are probably feeling a little disappointed, since its shares fell 7.6% to ₹377 in the week after its latest full-year results. Statutory earnings per share fell badly short of expectations, coming in at ₹5.60, some 25% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹4.1b. 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.

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Following the latest results, Tarsons Products' four analysts are now forecasting revenues of ₹4.40b in 2026. This would be a credible 7.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 108% to ₹11.64. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹4.58b and earnings per share (EPS) of ₹12.18 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.

Check out our latest analysis for Tarsons Products

The analysts made no major changes to their price target of ₹575, suggesting the downgrades are not expected to have a long-term impact on Tarsons Products' valuation. 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 Tarsons Products analyst has a price target of ₹760 per share, while the most pessimistic values it at ₹347. 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. We would highlight that Tarsons Products' revenue growth is expected to slow, with the forecast 7.6% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 16% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tarsons Products.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at ₹575, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Tarsons Products. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Tarsons Products going out to 2028, and you can see them free on our platform here..

Even so, be aware that Tarsons Products is showing 4 warning signs in our investment analysis , you should know about...

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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.