Greenlam Industries Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Greenlam Industries Limited (NSE:GREENLAM) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of ₹8.1b, some 4.6% above estimates, and statutory earnings per share (EPS) coming in at ₹1.25, 127% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 twelve analysts covering Greenlam Industries are now predicting revenues of ₹30.4b in 2026. If met, this would reflect a solid 10% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 172% to ₹3.39. In the lead-up to this report, the analysts had been modelling revenues of ₹30.2b and earnings per share (EPS) of ₹3.78 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

Check out our latest analysis for Greenlam Industries

The consensus price target held steady at ₹262, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Greenlam Industries at ₹335 per share, while the most bearish prices it at ₹225. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Greenlam Industries' past performance and to peers in the same industry. The analysts are definitely expecting Greenlam Industries' growth to accelerate, with the forecast 22% annualised growth to the end of 2026 ranking favourably alongside historical growth of 16% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Greenlam Industries is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Greenlam Industries. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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. We have estimates - from multiple Greenlam Industries analysts - going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Greenlam Industries (at least 1 which is potentially serious) , and understanding them should be part of your investment process.

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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.