Earnings Beat: Lumax Industries Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Lumax Industries Limited (NSE:LUMAXIND) just released its quarterly report and things are looking bullish. Lumax Industries delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting ₹8.9b-17% above indicated-and₹35.82-31% above forecasts- respectively Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Lumax Industries

Taking into account the latest results, the consensus forecast from Lumax Industries' dual analysts is for revenues of ₹37.2b in 2026. This reflects a solid 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 22% to ₹172. Before this earnings report, the analysts had been forecasting revenues of ₹36.5b and earnings per share (EPS) of ₹179 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at ₹2,997, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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. We would highlight that Lumax Industries' revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% annually. So it's pretty clear that, while Lumax Industries' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹2,997, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Lumax Industries going out as far as 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Lumax Industries (1 is a bit concerning!) that you need to take into consideration.

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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.