Bharat Electronics Limited Just Beat EPS By 38%: Here's What Analysts Think Will Happen Next

A week ago, Bharat Electronics Limited (NSE:BEL) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. Statutory revenue of ₹58b and earnings of ₹1.79 both blasted past expectations, beating expectations by 20% and 38%, respectively, ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Bharat Electronics

Taking into account the latest results, the consensus forecast from Bharat Electronics' 14 analysts is for revenues of ₹277.3b in 2026. This reflects a solid 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 13% to ₹7.69. Before this earnings report, the analysts had been forecasting revenues of ₹272.7b and earnings per share (EPS) of ₹7.49 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at ₹338, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Bharat Electronics, with the most bullish analyst valuing it at ₹380 and the most bearish at ₹224 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Bharat Electronics shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bharat Electronics' past performance and to peers in the same industry. The analysts are definitely expecting Bharat Electronics' growth to accelerate, with the forecast 15% annualised growth to the end of 2026 ranking favourably alongside historical growth of 13% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Bharat Electronics is expected to grow at about the same rate as 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 Bharat Electronics' earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for Bharat Electronics going out to 2027, 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 1 warning sign for Bharat Electronics 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.