Tarsons Products Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a sad week for Tarsons Products Limited (NSE:TARSONS), who've watched their investment drop 19% to ₹287 in the week since the company reported its third-quarter result. Tarsons Products beat revenue forecasts by a solid 10% to hit ₹957m. Statutory earnings per share fell 18% short of expectations, at ₹0.99. 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.

Check out our latest analysis for Tarsons Products

Following the latest results, Tarsons Products' four analysts are now forecasting revenues of ₹4.58b in 2026. This would be a solid 19% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 118% to ₹12.23. In the lead-up to this report, the analysts had been modelling revenues of ₹4.62b and earnings per share (EPS) of ₹12.60 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Despite cutting their earnings forecasts,the analysts have lifted their price target 8.4% to ₹597, suggesting that these impacts are not expected to weigh on the stock's value in the long term. 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. There are some variant perceptions on Tarsons Products, with the most bullish analyst valuing it at ₹760 and the most bearish at ₹347 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tarsons Products' past performance and to peers in the same industry. It's clear from the latest estimates that Tarsons Products' rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 9.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Tarsons Products 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Tarsons Products. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 forecasts for Tarsons Products going out to 2027, and you can see them free on our platform here.

Even so, be aware that Tarsons Products is showing 3 warning signs in our investment analysis , and 1 of those is significant...

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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.