Godrej Agrovet Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

It's been a sad week for Godrej Agrovet Limited (NSE:GODREJAGRO), who've watched their investment drop 11% to ₹590 in the week since the company reported its second-quarter result. It looks like a pretty bad result, all things considered. Although revenues of ₹26b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 23% to hit ₹4.81 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, Godrej Agrovet's seven analysts are now forecasting revenues of ₹101.8b in 2026. This would be a reasonable 4.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 5.0% to ₹23.76. In the lead-up to this report, the analysts had been modelling revenues of ₹104.5b and earnings per share (EPS) of ₹26.92 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

Check out our latest analysis for Godrej Agrovet

The consensus price target fell 5.0% to ₹850, with the weaker earnings outlook clearly leading valuation estimates. 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. The most optimistic Godrej Agrovet analyst has a price target of ₹980 per share, while the most pessimistic values it at ₹690. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We can infer from the latest estimates that forecasts expect a continuation of Godrej Agrovet'shistorical trends, as the 8.9% 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 9.8% annually. So although Godrej Agrovet 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Godrej Agrovet's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Godrej Agrovet 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 Godrej Agrovet 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.