Bharat Electronics Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a pretty great week for Bharat Electronics Limited (NSE:BEL) shareholders, with its shares surging 11% to ₹383 in the week since its latest full-year results. The result was positive overall - although revenues of ₹238b were in line with what the analysts predicted, Bharat Electronics surprised by delivering a statutory profit of ₹7.28 per share, modestly greater than expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bharat Electronics after the latest results.

Our free stock report includes 2 warning signs investors should be aware of before investing in Bharat Electronics. Read for free now.

Taking into account the latest results, the consensus forecast from Bharat Electronics' 13 analysts is for revenues of ₹275.4b in 2026. This reflects a solid 16% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 11% to ₹8.10. In the lead-up to this report, the analysts had been modelling revenues of ₹274.4b and earnings per share (EPS) of ₹7.57 in 2026. So the consensus seems to have become somewhat more optimistic on Bharat Electronics' earnings potential following these results.

Check out our latest analysis for Bharat Electronics

The consensus price target rose 12% to ₹385, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Bharat Electronics analyst has a price target of ₹445 per share, while the most pessimistic values it at ₹246. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Bharat Electronics' growth to accelerate, with the forecast 16% annualised growth to the end of 2026 ranking favourably alongside historical growth of 13% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. Bharat Electronics 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 most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Bharat Electronics following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Bharat Electronics analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Bharat Electronics (1 is significant!) that you need to be mindful 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.