Revenue Beat: Kaveri Seed Company Limited Beat Analyst Estimates By 38%

Last week, you might have seen that Kaveri Seed Company Limited (NSE:KSCL) released its third-quarter result to the market. The early response was not positive, with shares down 2.6% to ₹936 in the past week. Revenue of ₹1.7b beat expectations by an impressive 38%, while statutory earnings per share (EPS) were ₹54.58, in line with estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Kaveri Seed

Following the latest results, Kaveri Seed's two analysts are now forecasting revenues of ₹13.9b in 2026. This would be a notable 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 9.6% to ₹64.80. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹13.6b and earnings per share (EPS) of ₹61.00 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.5% to ₹969per share.

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 Kaveri Seed's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 4.8% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Kaveri Seed is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Kaveri Seed following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Kaveri Seed will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Kaveri Seed you should be aware 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.