IRB Infrastructure Developers Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

IRB Infrastructure Developers Limited (NSE:IRB) just released its latest second-quarter report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at ₹16b, statutory earnings missed forecasts by 15%, coming in at just ₹0.17 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for IRB Infrastructure Developers

Taking into account the latest results, the current consensus from IRB Infrastructure Developers' six analysts is for revenues of ₹78.1b in 2025. This would reflect a credible 4.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 50% to ₹1.53. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹82.8b and earnings per share (EPS) of ₹1.64 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the ₹69.33 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values IRB Infrastructure Developers at ₹81.00 per share, while the most bearish prices it at ₹60.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that IRB Infrastructure Developers' rate of growth is expected to accelerate meaningfully, with the forecast 8.2% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 13% annually. So it's clear that despite the acceleration in growth, IRB Infrastructure Developers is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple IRB Infrastructure Developers analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for IRB Infrastructure Developers (1 is potentially serious!) that you need to take into consideration.

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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.