Devyani International Limited (NSE:DEVYANI) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

It's been a sad week for Devyani International Limited (NSE:DEVYANI), who've watched their investment drop 11% to ₹161 in the week since the company reported its quarterly result. Results were overall in line with expectations, with the company breaking even at the statutory earnings per share (EPS) level on ₹13b in revenue. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Devyani International after the latest results.

Check out our latest analysis for Devyani International

Following the latest results, Devyani International's 25 analysts are now forecasting revenues of ₹58.6b in 2026. This would be a sizeable 22% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 975% to ₹1.46. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹58.8b and earnings per share (EPS) of ₹1.64 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The consensus price target held steady at ₹188, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Devyani International, with the most bullish analyst valuing it at ₹230 and the most bearish at ₹142 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Devyani International's revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2026 being well below the historical 27% p.a. growth over the last five years. Compare this to the 88 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 21% per year. Factoring in the forecast slowdown in growth, it looks like Devyani International is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Devyani International going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Devyani International (1 is a bit concerning!) that we have uncovered.

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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.