Earnings Beat: Indo Count Industries Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Explore Indo Count Industries's Fair Values from the Community and select yours

Indo Count Industries Limited (NSE:ICIL) came out with its first-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of ₹9.6b fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of ₹1.91 an impressive 59% ahead of estimates. 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 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 consensus forecast from Indo Count Industries' two analysts is for revenues of ₹43.0b in 2026. This reflects a modest 3.0% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be ₹10.40, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹45.6b and earnings per share (EPS) of ₹17.75 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

Check out our latest analysis for Indo Count Industries

The consensus price target fell 12% to ₹310, with the weaker earnings outlook clearly leading valuation estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Indo Count Industries' past performance and to peers in the same industry. We would highlight that Indo Count Industries' revenue growth is expected to slow, with the forecast 4.1% annualised growth rate until the end of 2026 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Indo Count Industries.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Indo Count Industries. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Indo Count Industries , and understanding them 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.