Praj Industries Limited Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

There's been a notable change in appetite for Praj Industries Limited (NSE:PRAJIND) shares in the week since its quarterly report, with the stock down 11% to ₹405. Revenues were ₹6.4b, 15% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of ₹11.91 being in line with what the analysts forecast. 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. 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 Praj Industries' six analysts is for revenues of ₹33.3b in 2026. This would reflect a credible 5.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 23% to ₹9.37. Before this earnings report, the analysts had been forecasting revenues of ₹37.4b and earnings per share (EPS) of ₹13.92 in 2026. Indeed, we can see that the analysts are a lot more bearish about Praj Industries' prospects following the latest results, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Praj Industries

The consensus price target fell 16% to ₹496, with the weaker earnings outlook clearly leading valuation estimates. 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 Praj Industries at ₹700 per share, while the most bearish prices it at ₹393. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 would highlight that Praj Industries' revenue growth is expected to slow, with the forecast 6.9% annualised growth rate until the end of 2026 being well below the historical 21% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Praj Industries.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Praj Industries' future valuation.

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 Praj Industries analysts - going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Praj Industries that we have uncovered.

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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.