Britannia Industries Limited Just Missed Earnings - But Analysts Have Updated Their Models

Explore Britannia Industries's Fair Values from the Community and select yours

Britannia Industries Limited (NSE:BRITANNIA) shareholders are probably feeling a little disappointed, since its shares fell 7.1% to ₹5,387 in the week after its latest first-quarter results. Revenues were in line with forecasts, at ₹46b, although statutory earnings per share came in 11% below what the analysts expected, at ₹21.62 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Britannia Industries' 35 analysts is for revenues of ₹195.5b in 2026. This reflects a credible 7.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 13% to ₹103. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹194.8b and earnings per share (EPS) of ₹104 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Britannia Industries

There were no changes to revenue or earnings estimates or the price target of ₹5,891, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Britannia Industries at ₹6,970 per share, while the most bearish prices it at ₹4,750. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Britannia Industries'historical trends, as the 9.5% annualised revenue growth to the end of 2026 is roughly in line with the 8.1% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 9.7% annually. So although Britannia Industries is expected to maintain its revenue growth rate, it's only growing at about the rate of 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 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Britannia Industries. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Britannia Industries analysts - going out to 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Britannia Industries that you need to be mindful 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.