Tega Industries Limited Just Missed Revenue By 14%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Tega Industries Limited (NSE:TEGA) released its quarterly result to the market. The early response was not positive, with shares down 5.3% to ₹1,099 in the past week. Revenues were ₹3.4b, 14% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of ₹27.62 being in line with what the analysts anticipated. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Tega Industries

Taking into account the latest results, the most recent consensus for Tega Industries from two analysts is for revenues of ₹18.3b in 2025. If met, it would imply a major 32% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 38% to ₹37.55. Before this earnings report, the analysts had been forecasting revenues of ₹18.2b and earnings per share (EPS) of ₹37.30 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 32% to ₹1,188despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Tega Industries' earnings by assigning a price premium.

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. It's clear from the latest estimates that Tega Industries' rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 16% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Tega Industries to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It might also be worth considering whether Tega Industries' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.