Earnings Beat: Harsha Engineers International Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

As you might know, Harsha Engineers International Limited (NSE:HARSHA) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 3.1% to hit ₹3.8b. Harsha Engineers International reported statutory earnings per share (EPS) ₹4.00, which was a notable 11% above what the analysts had 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the most recent consensus for Harsha Engineers International from four analysts is for revenues of ₹15.3b in 2026. If met, it would imply an okay 4.8% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 54% to ₹16.65. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹15.2b and earnings per share (EPS) of ₹15.53 in 2026. So the consensus seems to have become somewhat more optimistic on Harsha Engineers International's earnings potential following these results.

See our latest analysis for Harsha Engineers International

There's been no major changes to the consensus price target of ₹413, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock'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. The most optimistic Harsha Engineers International analyst has a price target of ₹420 per share, while the most pessimistic values it at ₹407. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 Harsha Engineers International's rate of growth is expected to accelerate meaningfully, with the forecast 9.9% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 1.8% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. So it's clear that despite the acceleration in growth, Harsha Engineers International is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Harsha Engineers International following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Harsha Engineers International's revenue is expected to perform worse 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 Harsha Engineers International analysts - going out to 2028, and you can see them free on our platform here.

You can also see whether Harsha Engineers International is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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.