Transformers and Rectifiers (India) Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

As you might know, Transformers and Rectifiers (India) Limited (NSE:TARIL) recently reported its annual numbers. It looks like a credible result overall - although revenues of ₹21b were in line with what the analysts predicted, Transformers and Rectifiers (India) surprised by delivering a statutory profit of ₹7.21 per share, a notable 12% above expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Transformers and Rectifiers (India)'s dual analysts is for revenues of ₹33.7b in 2026. This would reflect a sizeable 64% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 64% to ₹11.70. Before this earnings report, the analysts had been forecasting revenues of ₹34.8b and earnings per share (EPS) of ₹11.40 in 2026. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

View our latest analysis for Transformers and Rectifiers (India)

There's been a 33% lift in the price target to ₹718, with the analysts signalling that the higher earnings forecasts are more relevant to the business than the weaker revenue estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Transformers and Rectifiers (India)'s growth to accelerate, with the forecast 64% annualised growth to the end of 2026 ranking favourably alongside historical growth of 20% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 20% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Transformers and Rectifiers (India) to grow faster than 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 Transformers and Rectifiers (India) following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Transformers and Rectifiers (India). Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Transformers and Rectifiers (India) 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.