Birla Corporation Limited Just Recorded A 73% EPS Beat: Here's What Analysts Are Forecasting Next

Birla Corporation Limited (NSE:BIRLACORPN) just released its latest second-quarter results and things are looking bullish. The company beat forecasts, with revenue of ₹22b, some 4.5% above estimates, and statutory earnings per share (EPS) coming in at ₹11.75, 73% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following last week's earnings report, Birla's 13 analysts are forecasting 2026 revenues to be ₹99.4b, approximately in line with the last 12 months. Per-share earnings are expected to increase 4.1% to ₹67.27. In the lead-up to this report, the analysts had been modelling revenues of ₹99.3b and earnings per share (EPS) of ₹69.52 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.

Check out our latest analysis for Birla

It might be a surprise to learn that the consensus price target was broadly unchanged at ₹1,571, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Birla analyst has a price target of ₹1,712 per share, while the most pessimistic values it at ₹1,419. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Birla's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 8.2% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.5% annually. So it's clear that despite the slowdown in growth, Birla is still expected to grow meaningfully faster than the wider industry.

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, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Birla's revenue is expected to perform better than the wider industry. The consensus price target held steady at ₹1,571, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Birla. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Birla analysts - going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Birla , and understanding this should be part of your investment process.

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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.