Analysts Are Updating Their Orient Electric Limited (NSE:ORIENTELEC) Estimates After Its Yearly Results

It's been a pretty great week for Orient Electric Limited (NSE:ORIENTELEC) shareholders, with its shares surging 11% to ₹239 in the week since its latest full-year results. Revenues of ₹31b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at ₹3.90, missing estimates by 3.6%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Orient Electric after the latest results.

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Taking into account the latest results, the current consensus from Orient Electric's 13 analysts is for revenues of ₹34.5b in 2026. This would reflect a meaningful 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 50% to ₹5.85. Before this earnings report, the analysts had been forecasting revenues of ₹35.7b and earnings per share (EPS) of ₹6.39 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

See our latest analysis for Orient Electric

Despite the cuts to forecast earnings, there was no real change to the ₹269 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Orient Electric, with the most bullish analyst valuing it at ₹305 and the most bearish at ₹235 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Orient Electric is an easy business to forecast or the the analysts are all using similar assumptions.

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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 19% per year. So although Orient Electric 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 Orient Electric. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at ₹269, 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 Orient Electric. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Orient Electric analysts - going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Orient Electric 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.