Earnings Report: MTAR Technologies Limited Missed Revenue Estimates By 41%

Shareholders might have noticed that MTAR Technologies Limited (NSE:MTARTECH) filed its quarterly result this time last week. The early response was not positive, with shares down 5.1% to ₹2,419 in the past week. Revenues were ₹1.4b, 41% shy of what the analysts were expecting, although statutory earnings of ₹17.19 per share were roughly in line with what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from MTAR Technologies' three analysts is for revenues of ₹8.96b in 2026. This reflects a sizeable 37% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 135% to ₹34.15. Before this earnings report, the analysts had been forecasting revenues of ₹8.63b and earnings per share (EPS) of ₹32.77 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

See our latest analysis for MTAR Technologies

With these upgrades, we're not surprised to see that the analysts have lifted their price target 22% to ₹2,453per share. 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. Currently, the most bullish analyst values MTAR Technologies at ₹3,270 per share, while the most bearish prices it at ₹1,900. 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.

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 MTAR Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 89% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 22% p.a. over the past five 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. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect MTAR Technologies to grow faster than 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 MTAR Technologies' earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 MTAR Technologies 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 1 warning sign with MTAR Technologies , and understanding it 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.