BEML Limited Recorded A 15% Miss On Revenue: Analysts Are Revisiting Their Models

Last week, you might have seen that BEML Limited (NSE:BEML) released its second-quarter result to the market. The early response was not positive, with shares down 8.8% to ₹2,007 in the past week. Revenues were ₹8.4b, 15% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of ₹35.12 being in line with what the analysts forecast. 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 current consensus from BEML's twin analysts is for revenues of ₹44.8b in 2026. This would reflect a solid 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 33% to ₹47.30. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹46.6b and earnings per share (EPS) of ₹50.25 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

View our latest analysis for BEML

The average price target climbed 7.6% to ₹2,221despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to 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 25% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that BEML is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for BEML. They also downgraded BEML's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on BEML. Long-term earnings power is much more important than next year's profits. We have analyst estimates for BEML going out as far as 2028, and you can see them free on our platform here.

Even so, be aware that BEML is showing 1 warning sign in our investment analysis , you should know about...

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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.