Results: R R Kabel Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

R R Kabel Limited (NSE:RRKABEL) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 3.8% to hit ₹22b. R R Kabel also reported a statutory profit of ₹10.27, which was an impressive 22% above what the analysts had 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 consensus forecast from R R Kabel's nine analysts is for revenues of ₹88.9b in 2026. This reflects a decent 8.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.8% to ₹38.29. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹87.7b and earnings per share (EPS) of ₹36.57 in 2026. So the consensus seems to have become somewhat more optimistic on R R Kabel's earnings potential following these results.

View our latest analysis for R R Kabel

The consensus price target was unchanged at ₹1,652, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values R R Kabel at ₹2,050 per share, while the most bearish prices it at ₹1,326. 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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 14% annual growth over the past three years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 20% per year. So although R R Kabel is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards R R Kabel following these results. 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 ₹1,652, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple R R Kabel analysts - going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - R R Kabel has 1 warning sign we think 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.