Earnings Beat: Elgi Equipments Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

As you might know, Elgi Equipments Limited (NSE:ELGIEQUIP) just kicked off its latest second-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 5.7% to hit ₹9.7b. Elgi Equipments also reported a statutory profit of ₹3.83, which was an impressive 22% above what the analysts had forecast. 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.

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After the latest results, the four analysts covering Elgi Equipments are now predicting revenues of ₹38.7b in 2026. If met, this would reflect an okay 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 4.9% to ₹12.95. Before this earnings report, the analysts had been forecasting revenues of ₹38.7b and earnings per share (EPS) of ₹12.98 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Elgi Equipments

The analysts reconfirmed their price target of ₹572, showing that the business is executing well and in line with expectations. 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 Elgi Equipments analyst has a price target of ₹680 per share, while the most pessimistic values it at ₹425. 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.

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 pretty clear that there is an expectation that Elgi Equipments' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 8.2% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it seems obvious that Elgi Equipments is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Elgi Equipments' revenue is expected to perform worse than the wider 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 Elgi Equipments going out to 2028, and you can see them free on our platform here..

You can also see our analysis of Elgi Equipments' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.