Earnings Report: AIA Engineering Limited Missed Revenue Estimates By 19%

AIA Engineering Limited (NSE:AIAENG) just released its latest first-quarter report and things are not looking great. AIA Engineering reported an earnings miss, with ₹10b revenues falling 19% short of analyst models, and statutory earnings per share (EPS) of ₹27.52 also coming in slightly below expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for AIA Engineering

Following the latest results, AIA Engineering's 13 analysts are now forecasting revenues of ₹50.6b in 2025. This would be a meaningful 9.1% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be ₹121, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹52.3b and earnings per share (EPS) of ₹121 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The analysts have also increased their price target 13% to ₹4,491, clearly signalling that lower revenue forecasts next year are not expected to have a material impact on AIA Engineering's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values AIA Engineering at ₹5,400 per share, while the most bearish prices it at ₹3,285. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% annually. So although AIA Engineering is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. With that said, earnings are more important to the long-term value of the business. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on AIA Engineering. Long-term earnings power is much more important than next year's profits. We have forecasts for AIA Engineering going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with AIA Engineering .

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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.