Kalpataru Projects International Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Kalpataru Projects International Limited (NSE:KPIL) last week released its latest first-quarter, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with ₹46b revenue coming in 6.4% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹5.71 missed the mark badly, arriving some 31% below what was 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Kalpataru Projects International

Following last week's earnings report, Kalpataru Projects International's eight analysts are forecasting 2025 revenues to be ₹202.8b, approximately in line with the last 12 months. Per-share earnings are expected to surge 56% to ₹46.86. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹241.4b and earnings per share (EPS) of ₹51.54 in 2025. Indeed, we can see that sentiment has declined measurably after results came out, with a substantial drop in revenue estimates and a minor downgrade to EPS estimates to boot.

The average price target climbed 7.9% to ₹1,416despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes. 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 Kalpataru Projects International at ₹1,702 per share, while the most bearish prices it at ₹1,043. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Kalpataru Projects International's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it seems obvious that Kalpataru Projects International is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kalpataru Projects International. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Kalpataru Projects International going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Kalpataru Projects International has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

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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.

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