Earnings Miss: Crompton Greaves Consumer Electricals Limited Missed EPS By 21% And Analysts Are Revising Their Forecasts

Crompton Greaves Consumer Electricals Limited (NSE:CROMPTON) just released its latest first-quarter report and things are not looking great. Results showed a clear earnings miss, with ₹20b revenue coming in 7.7% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹1.90 missed the mark badly, arriving some 21% below what was expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Crompton Greaves Consumer Electricals from 30 analysts is for revenues of ₹83.7b in 2026. If met, it would imply a decent 8.3% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 15% to ₹9.41. Before this earnings report, the analysts had been forecasting revenues of ₹86.7b and earnings per share (EPS) of ₹10.16 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Check out our latest analysis for Crompton Greaves Consumer Electricals

Despite the cuts to forecast earnings, there was no real change to the ₹410 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Crompton Greaves Consumer Electricals, with the most bullish analyst valuing it at ₹470 and the most bearish at ₹337 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 13% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 16% annually. So although Crompton Greaves Consumer Electricals is expected to maintain its revenue growth rate, it's forecast to grow slower 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 Crompton Greaves Consumer Electricals. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹410, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Crompton Greaves Consumer Electricals going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Crompton Greaves Consumer Electricals that 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.