Sandhar Technologies Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Investors in Sandhar Technologies Limited (NSE:SANDHAR) had a good week, as its shares rose 6.8% to close at ₹460 following the release of its yearly results. The result was positive overall - although revenues of ₹39b were in line with what the analysts predicted, Sandhar Technologies surprised by delivering a statutory profit of ₹23.53 per share, modestly greater than expected. 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. 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, Sandhar Technologies' three analysts are now forecasting revenues of ₹45.7b in 2026. This would be a solid 17% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 19% to ₹27.90. Before this earnings report, the analysts had been forecasting revenues of ₹43.0b and earnings per share (EPS) of ₹26.65 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Check out our latest analysis for Sandhar Technologies

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹592, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Sandhar Technologies, with the most bullish analyst valuing it at ₹600 and the most bearish at ₹584 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 18% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.7% annually. So although Sandhar Technologies is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sandhar Technologies' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Sandhar Technologies 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.