Earnings Update: Aavas Financiers Limited (NSE:AAVAS) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Aavas Financiers Limited (NSE:AAVAS) just released its latest first-quarter report and things are not looking great. Results look to have been somewhat negative - revenue fell 4.6% short of analyst estimates at ₹3.1b, and statutory earnings of ₹15.92 per share missed forecasts by 4.1%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Aavas Financiers

Taking into account the latest results, the current consensus from Aavas Financiers' 14 analysts is for revenues of ₹14.0b in 2025. This would reflect a decent 18% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 17% to ₹74.74. In the lead-up to this report, the analysts had been modelling revenues of ₹14.3b and earnings per share (EPS) of ₹75.49 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,896. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Aavas Financiers analyst has a price target of ₹2,200 per share, while the most pessimistic values it at ₹1,454. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Aavas Financiers' past performance and to peers in the same industry. It's clear from the latest estimates that Aavas Financiers' rate of growth is expected to accelerate meaningfully, with the forecast 24% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 19% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Aavas Financiers to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at ₹1,896, with the latest estimates not enough to have an impact on their price targets.

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. We have forecasts for Aavas Financiers going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Aavas Financiers .

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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.

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