Revenue Beat: Kaveri Seed Company Limited Beat Analyst Estimates By 36%

Kaveri Seed Company Limited (NSE:KSCL) shareholders are probably feeling a little disappointed, since its shares fell 3.1% to ₹1,000 in the week after its latest quarterly results. Revenue of ₹2.2b came in a notable 36% ahead of expectations, while statutory earnings of ₹55.10 were in line with what the analyst had been forecasting. Following the result, the analyst has 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Kaveri Seed after the latest results.

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After the latest results, the single analyst covering Kaveri Seed are now predicting revenues of ₹13.9b in 2026. If met, this would reflect a reasonable 3.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.9% to ₹62.40. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹13.7b and earnings per share (EPS) of ₹64.70 in 2026. The analyst seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for Kaveri Seed

The average price target fell 9.5% to ₹1,144, with reduced earnings forecasts clearly tied to a lower valuation estimate.

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. It's clear from the latest estimates that Kaveri Seed's rate of growth is expected to accelerate meaningfully, with the forecast 7.6% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 5.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 9.9% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Kaveri Seed is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 analyst estimates for Kaveri Seed going out as far as 2028, and you can see them free on our platform here.

Even so, be aware that Kaveri Seed is showing 2 warning signs in our investment analysis , you should know about...

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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.