AIA Engineering Limited Just Missed Revenue By 7.5%: Here's What Analysts Think Will Happen Next

It's been a sad week for AIA Engineering Limited (NSE:AIAENG), who've watched their investment drop 12% to ₹3,936 in the week since the company reported its quarterly result. Revenues came in 7.5% below expectations, at ₹12b. Statutory earnings per share were relatively better off, with a per-share profit of ₹29.64 being roughly in line with analyst estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AIA Engineering after the latest results.

See our latest analysis for AIA Engineering

Following the latest results, AIA Engineering's 14 analysts are now forecasting revenues of ₹55.1b in 2025. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 4.4% to ₹126. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹57.1b and earnings per share (EPS) of ₹130 in 2025. 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.

The analysts made no major changes to their price target of ₹4,062, suggesting the downgrades are not expected to have a long-term impact on AIA Engineering's 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 AIA Engineering analyst has a price target of ₹4,960 per share, while the most pessimistic values it at ₹3,576. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. It's pretty clear that there is an expectation that AIA Engineering's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.4% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% 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 AIA Engineering.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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 estimates - from multiple AIA Engineering analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for AIA Engineering that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.