Earnings Report: Techno Electric & Engineering Company Limited Missed Revenue Estimates By 15%

The quarterly results for Techno Electric & Engineering Company Limited (NSE:TECHNOE) were released last week, making it a good time to revisit its performance. Revenues were ₹3.8b, 15% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of ₹24.94 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Techno Electric & Engineering

Following the latest results, Techno Electric & Engineering's three analysts are now forecasting revenues of ₹25.2b in 2025. This would be a major 57% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 18% to ₹32.45. Before this earnings report, the analysts had been forecasting revenues of ₹26.0b and earnings per share (EPS) of ₹34.33 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of ₹1,617, suggesting the downgrades are not expected to have a long-term impact on Techno Electric & Engineering's valuation. 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. Currently, the most bullish analyst values Techno Electric & Engineering at ₹1,766 per share, while the most bearish prices it at ₹1,485. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Techno Electric & Engineering is an easy business to forecast or the the analysts are all using similar assumptions.

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 Techno Electric & Engineering's growth to accelerate, with the forecast 83% annualised growth to the end of 2025 ranking favourably alongside historical growth of 10% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Techno Electric & Engineering to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Techno Electric & Engineering. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Techno Electric & Engineering analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Techno Electric & Engineering (1 is potentially serious) 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.