Berger Paints India Limited (NSE:BERGEPAINT) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

As you might know, Berger Paints India Limited (NSE:BERGEPAINT) recently reported its quarterly numbers. Results were roughly in line with estimates, with revenues of ₹30b and statutory earnings per share of ₹2.53. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Berger Paints India after the latest results.

See our latest analysis for Berger Paints India

Taking into account the latest results, the most recent consensus for Berger Paints India from 20 analysts is for revenues of ₹126.8b in 2026. If met, it would imply a solid 12% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 13% to ₹11.02. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹128.9b and earnings per share (EPS) of ₹11.28 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 minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹501, 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. There are some variant perceptions on Berger Paints India, with the most bullish analyst valuing it at ₹640 and the most bearish at ₹400 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Berger Paints India's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Berger Paints India's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 9.2% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Berger Paints India.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Berger Paints India's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹501, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Berger Paints India going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Berger Paints India's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.