Hitachi Energy India Limited (NSE:POWERINDIA) Fell Short of Analyst Expectations: Here's What You Need To Know

The analysts might have been a bit too bullish on Hitachi Energy India Limited (NSE:POWERINDIA), given that the company fell short of expectations when it released its first-quarter results last week. Earnings fell badly short of analyst estimates, with ₹15b revenues missing by 15%, and statutory earnings per share (EPS) of ₹29.53 falling short of forecasts by some -17%. 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 current consensus from Hitachi Energy India's eleven analysts is for revenues of ₹86.2b in 2026. This would reflect a substantial 32% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 46% to ₹165. Before this earnings report, the analysts had been forecasting revenues of ₹88.9b and earnings per share (EPS) of ₹165 in 2026. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

Check out our latest analysis for Hitachi Energy India

The consensus price target rose 5.0% to ₹17,365, with the analysts apparently satisfied with the business performance despite lower revenue forecasts. 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 Hitachi Energy India at ₹24,000 per share, while the most bearish prices it at ₹13,350. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Hitachi Energy India's past performance and to peers in the same industry. It's clear from the latest estimates that Hitachi Energy India's rate of growth is expected to accelerate meaningfully, with the forecast 45% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hitachi Energy India to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also downgraded Hitachi Energy India's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. 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 in mind, we wouldn't be too quick to come to a conclusion on Hitachi Energy India. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Hitachi Energy India going out to 2028, and you can see them free on our platform here..

You can also see our analysis of Hitachi Energy India's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.