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

BEML Limited (NSE:BEML) defied analyst predictions to release its annual results, which were ahead of market expectations. The company beat expectations with revenues of ₹40b arriving 2.2% ahead of forecasts. Statutory earnings per share (EPS) were ₹70.24, 9.4% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on BEML after the latest results.

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Taking into account the latest results, the most recent consensus for BEML from twin analysts is for revenues of ₹47.9b in 2026. If met, it would imply a meaningful 18% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 43% to ₹101. Before this earnings report, the analysts had been forecasting revenues of ₹49.2b and earnings per share (EPS) of ₹102 in 2026. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

View our latest analysis for BEML

The analysts have also increased their price target 7.6% to ₹4,129, clearly signalling that lower revenue forecasts next year are not expected to have a material impact on BEML's valuation.

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. It's clear from the latest estimates that BEML's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 5.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect BEML to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for BEML 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.