Earnings Miss: Hitachi Energy India Limited Missed EPS By 67% And Analysts Are Revising Their Forecasts

Hitachi Energy India Limited (NSE:POWERINDIA) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like a pretty bad result, all things considered. Although revenues of ₹13b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 67% to hit ₹5.42 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hitachi Energy India after the latest results.

See our latest analysis for Hitachi Energy India

Taking into account the latest results, the most recent consensus for Hitachi Energy India from seven analysts is for revenues of ₹65.8b in 2025. If met, it would imply a sizeable 35% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 274% to ₹89.10. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹66.7b and earnings per share (EPS) of ₹91.70 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 11% to ₹4,989, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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. The most optimistic Hitachi Energy India analyst has a price target of ₹6,500 per share, while the most pessimistic values it at ₹4,200. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Hitachi Energy India's growth to accelerate, with the forecast 27% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 19% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Hitachi Energy India is expected to grow much faster than its industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Hitachi Energy India going out to 2026, and you can see them free on our platform here..

You can also view our analysis of Hitachi Energy India's balance sheet, and whether we think Hitachi Energy India is carrying too much debt, for free on our platform here.

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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.