Analysts Have Made A Financial Statement On Polycab India Limited's (NSE:POLYCAB) Third-Quarter Report

Polycab India Limited (NSE:POLYCAB) just released its latest third-quarter report and things are not looking great. Polycab India missed analyst forecasts, with revenues of ₹52b and statutory earnings per share (EPS) of ₹30.31, falling short by 2.8% and 4.3% respectively. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Polycab India

Following the latest results, Polycab India's 28 analysts are now forecasting revenues of ₹257.9b in 2026. This would be a sizeable 23% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 29% to ₹157. Before this earnings report, the analysts had been forecasting revenues of ₹258.9b and earnings per share (EPS) of ₹161 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at ₹7,498, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Polycab India at ₹9,220 per share, while the most bearish prices it at ₹4,750. 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. We can infer from the latest estimates that forecasts expect a continuation of Polycab India'shistorical trends, as the 18% annualised revenue growth to the end of 2026 is roughly in line with the 20% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 20% annually. So although Polycab India is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Polycab India. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at ₹7,498, with the latest estimates not enough to have an impact on their price targets.

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 Polycab India analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Polycab India (1 is potentially serious!) that you should be aware of.

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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.