What You Need To Know About The Archean Chemical Industries Limited (NSE:ACI) Analyst Downgrade Today

Market forces rained on the parade of Archean Chemical Industries Limited (NSE:ACI) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

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Following the downgrade, the latest consensus from Archean Chemical Industries' seven analysts is for revenues of ₹12b in 2026, which would reflect a decent 10% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ₹15b in 2026. It looks like forecasts have become a fair bit less optimistic on Archean Chemical Industries, given the pretty serious reduction to revenue estimates.

View our latest analysis for Archean Chemical Industries

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Archean Chemical Industries' growth to accelerate, with the forecast 21% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Archean Chemical Industries to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Archean Chemical Industries after today.

Want to learn more? We have estimates for Archean Chemical Industries from its seven analysts out until 2028, and you can see them free on our platform here.

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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.