The ICRA Limited (NSE:ICRA) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

Investors in ICRA Limited (NSE:ICRA) had a good week, as its shares rose 2.8% to close at ₹6,425 following the release of its quarterly results. It was a credible result overall, with revenues of ₹1.4b and statutory earnings per share of ₹49.57 both in line with analyst estimates, showing that ICRA is executing in line with expectations. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the most recent consensus for ICRA from twin analysts is for revenues of ₹5.80b in 2026. If met, it would imply a solid 12% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be ₹192, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹5.57b and earnings per share (EPS) of ₹205 in 2026. So it's pretty clear consensus is mixed on ICRA after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

Check out our latest analysis for ICRA

The consensus price target was unchanged at ₹7,277, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that ICRA's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ICRA to grow faster than 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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 in mind, we wouldn't be too quick to come to a conclusion on ICRA. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for ICRA that you need to take into consideration.

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.