Hindustan Aeronautics Limited Just Recorded A 9.3% EPS Beat: Here's What Analysts Are Forecasting Next

Hindustan Aeronautics Limited (NSE:HAL) just released its latest quarterly results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 3.6% to hit ₹66b. Statutory earnings per share (EPS) came in at ₹24.96, some 9.3% above whatthe analysts had expected. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Following the latest results, Hindustan Aeronautics' twelve analysts are now forecasting revenues of ₹353.0b in 2026. This would be a meaningful 10.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 6.0% to ₹134. In the lead-up to this report, the analysts had been modelling revenues of ₹344.6b and earnings per share (EPS) of ₹130 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Check out our latest analysis for Hindustan Aeronautics

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₹5,591, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. There are some variant perceptions on Hindustan Aeronautics, with the most bullish analyst valuing it at ₹6,360 and the most bearish at ₹4,100 per share. 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.

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. The analysts are definitely expecting Hindustan Aeronautics' growth to accelerate, with the forecast 21% annualised growth to the end of 2026 ranking favourably alongside historical growth of 8.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hindustan Aeronautics is expected to grow at about the same rate as 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 Hindustan Aeronautics' earnings potential next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Hindustan Aeronautics. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Hindustan Aeronautics analysts - going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Hindustan Aeronautics you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.