Craftsman Automation Limited Just Missed Earnings - But Analysts Have Updated Their Models

Last week, you might have seen that Craftsman Automation Limited (NSE:CRAFTSMAN) released its quarterly result to the market. The early response was not positive, with shares down 9.1% to ₹4,177 in the past week. Results overall were not great, with earnings of ₹5.42 per share falling drastically short of analyst expectations. Meanwhile revenues hit ₹16b and were slightly better than forecasts. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Craftsman Automation

Taking into account the latest results, the consensus forecast from Craftsman Automation's six analysts is for revenues of ₹70.9b in 2026. This reflects a substantial 40% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 117% to ₹173. Before this earnings report, the analysts had been forecasting revenues of ₹72.4b and earnings per share (EPS) of ₹201 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

The consensus price target fell 11% to ₹5,317, with the weaker earnings outlook clearly leading valuation estimates. 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. The most optimistic Craftsman Automation analyst has a price target of ₹6,000 per share, while the most pessimistic values it at ₹4,275. 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 Craftsman Automation shareholders.

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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 31% growth on an annualised basis. That is in line with its 28% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 14% per year. So it's pretty clear that Craftsman Automation is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Craftsman Automation's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. We have estimates - from multiple Craftsman Automation analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Craftsman Automation is showing 3 warning signs in our investment analysis , and 1 of those is significant...

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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.