Revenue Miss: Engineers India Limited Fell 28% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Engineers India Limited (NSE:ENGINERSIN) shareholders are probably feeling a little disappointed, since its shares fell 4.4% to ₹219 in the week after its latest quarterly results. Revenues were ₹6.2b, 28% shy of what the analysts were expecting, although statutory earnings of ₹7.92 per share were roughly in line with what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Engineers India

Taking into account the latest results, the consensus forecast from Engineers India's two analysts is for revenues of ₹33.5b in 2025. This reflects a meaningful 8.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to sink 17% to ₹5.85 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹37.6b and earnings per share (EPS) of ₹8.45 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a pretty serious reduction to earnings per share numbers as well.

Despite the cuts to forecast earnings, there was no real change to the ₹239 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Engineers India's past performance and to peers in the same industry. The analysts are definitely expecting Engineers India's growth to accelerate, with the forecast 12% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.0% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 14% per year. Engineers India is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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 their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at ₹239, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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 Engineers India 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.