Graphite India Limited Recorded A 14% Miss On Revenue: Analysts Are Revisiting Their Models

It's been a mediocre week for Graphite India Limited (NSE:GRAPHITE) shareholders, with the stock dropping 18% to ₹409 in the week since its latest third-quarter results. Revenues were ₹5.2b, 14% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of ₹41.36 being in line with what the analysts anticipated. 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.

Check out our latest analysis for Graphite India

Taking into account the latest results, the most recent consensus for Graphite India from dual analysts is for revenues of ₹30.1b in 2026. If met, it would imply a meaningful 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 122% to ₹48.68. Before this earnings report, the analysts had been forecasting revenues of ₹33.1b and earnings per share (EPS) of ₹52.63 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of ₹697, suggesting the downgrades are not expected to have a long-term impact on Graphite India'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 Graphite India's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 21% per year. So it's clear that despite the acceleration in growth, Graphite India is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Graphite India. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at ₹697, with the latest estimates not enough to have an impact on their price targets.

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 analyst estimates for Graphite India going out as far as 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Graphite India 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.