Results: Aarti Industries Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Aarti Industries Limited (NSE:AARTIIND) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 5.1% to hit ₹21b. Aarti Industries also reported a statutory profit of ₹4.10, which was an impressive 21% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the 21 analysts covering Aarti Industries are now predicting revenues of ₹80.2b in 2026. If met, this would reflect a satisfactory 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 28% to ₹10.24. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹81.1b and earnings per share (EPS) of ₹10.68 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Aarti Industries

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹458, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Aarti Industries at ₹623 per share, while the most bearish prices it at ₹329. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Aarti Industries' growth to accelerate, with the forecast 12% annualised growth to the end of 2026 ranking favourably alongside historical growth of 8.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Aarti Industries is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Aarti Industries. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Aarti Industries going out to 2028, and you can see them free on our platform here..

Even so, be aware that Aarti Industries is showing 2 warning signs in our investment analysis , and 1 of those makes us a bit uncomfortable...

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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.