Earnings Report: eMudhra Limited Missed Revenue Estimates By 7.7%

Shareholders in eMudhra Limited (NSE:EMUDHRA) had a terrible week, as shares crashed 27% to ₹697 in the week since its latest third-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at ₹1.4b, statutory earnings were in line with expectations, at ₹9.50 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 analyst has changed their earnings models, following these results.

See our latest analysis for eMudhra

After the latest results, the solitary analyst covering eMudhra are now predicting revenues of ₹7.04b in 2026. If met, this would reflect a sizeable 49% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 60% to ₹16.20. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹7.64b and earnings per share (EPS) of ₹19.10 in 2026. The analyst 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 ₹991 price target, showing that the analyst doesn't think the changes have a meaningful impact on its intrinsic value.

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. It's clear from the latest estimates that eMudhra's rate of growth is expected to accelerate meaningfully, with the forecast 38% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 28% p.a. 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 15% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect eMudhra to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for eMudhra. 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 ₹991, with the latest estimates not enough to have an impact on their price target.

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 2027, which can be seen for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our 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.