eMudhra Limited Just Beat Revenue By 26%: Here's What Analysts Think Will Happen Next

It's been a good week for eMudhra Limited (NSE:EMUDHRA) shareholders, because the company has just released its latest second-quarter results, and the shares gained 4.0% to ₹916. Revenue of ₹1.4b beat expectations by an impressive 26%, while statutory earnings per share (EPS) were ₹9.50, in line with estimates. 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.

View our latest analysis for eMudhra

Taking into account the latest results, the current consensus from eMudhra's sole analyst is for revenues of ₹5.45b in 2025. This would reflect a substantial 26% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 26% to ₹12.60. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹4.75b and earnings per share (EPS) of ₹13.00 in 2025. Although revenue sentiment looks to be improving, the analyst has made a minor downgrade to per-share earnings estimates, perhaps acknowledging the investment required to grow the business.

The analyst also upgraded eMudhra's price target 7.9% to ₹998, implying that the higher revenue expected to generate enough value to offset the forecast decline in earnings.

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 eMudhra's rate of growth is expected to accelerate meaningfully, with the forecast 58% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 38% over the past year. 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. Factoring in the forecast acceleration in revenue, it's pretty clear that eMudhra is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for eMudhra going out as far as 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with eMudhra , and understanding it should be part of your investment process.

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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.