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

It's been a sad week for Tega Industries Limited (NSE:TEGA), who've watched their investment drop 12% to ₹1,930 in the week since the company reported its second-quarter result. Revenues were ₹3.5b, 14% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of ₹29.09 being in line with what the analysts forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Tega Industries

Taking into account the latest results, the most recent consensus for Tega Industries from four analysts is for revenues of ₹17.2b in 2025. If met, it would imply a solid 11% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 31% to ₹33.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹17.7b and earnings per share (EPS) of ₹37.65 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

Despite the cuts to forecast earnings, there was no real change to the ₹2,013 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. The most optimistic Tega Industries analyst has a price target of ₹2,150 per share, while the most pessimistic values it at ₹1,841. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Tega Industries is an easy business to forecast or the the analysts are all using similar assumptions.

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 period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 21% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% annually. So although Tega Industries is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at ₹2,013, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Tega Industries. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Tega Industries analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Tega Industries' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.