The Graphite India Limited (NSE:GRAPHITE) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

Shareholders might have noticed that Graphite India Limited (NSE:GRAPHITE) filed its quarterly result this time last week. The early response was not positive, with shares down 7.2% to ₹568 in the past week. It was a workmanlike result, with revenues of ₹7.3b coming in 4.1% ahead of expectations, and statutory earnings per share of ₹23.65, in line with analyst appraisals. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the two analysts covering Graphite India are now predicting revenues of ₹25.6b in 2026. If met, this would reflect a reasonable 4.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 231% to ₹40.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹29.0b and earnings per share (EPS) of ₹38.27 in 2026. It looks like there's been a meaningful change to the consensus view following the recent earnings report, with the analysts making a substantial drop in to revenue forecasts and a modest lift to to next year's earnings estimates.

See our latest analysis for Graphite India

There's been no real change to the average price target of ₹703, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe.

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 Graphite India's rate of growth is expected to accelerate meaningfully, with the forecast 8.4% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 20% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Graphite India is expected to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Graphite India's earnings potential next year. 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. With that said, earnings are more important to the long-term value of the business. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Graphite India going out as far as 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Graphite India that we have uncovered.

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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.