PDS Limited Just Recorded A 32% Revenue Beat: Here's What Analysts Think

PDS Limited (NSE:PDSL) shareholders are probably feeling a little disappointed, since its shares fell 7.2% to ₹485 in the week after its latest quarterly results. Revenue of ₹31b came in a notable 32% ahead of expectations, while statutory earnings of ₹10.77 were in line with what the analysts had been forecasting. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for PDS

After the latest results, the two analysts covering PDS are now predicting revenues of ₹152.4b in 2026. If met, this would reflect a huge 24% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 95% to ₹22.75. Before this earnings report, the analysts had been forecasting revenues of ₹151.9b and earnings per share (EPS) of ₹22.20 in 2026. So the consensus seems to have become somewhat more optimistic on PDS' earnings potential following these results.

The consensus price target was unchanged at ₹746, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

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 analysts are definitely expecting PDS' growth to accelerate, with the forecast 19% annualised growth to the end of 2026 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect PDS to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around PDS' earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for PDS you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.