Chambal Fertilisers and Chemicals Limited Just Recorded A 13% Revenue Beat: Here's What Analysts Think

Chambal Fertilisers and Chemicals Limited (NSE:CHAMBLFERT) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Chambal Fertilisers and Chemicals beat expectations, with revenue hitting ₹49b (13% ahead of estimates) and EPS reaching ₹13.34 (a 5.0% beat). 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Chambal Fertilisers and Chemicals

Following the latest results, Chambal Fertilisers and Chemicals' three analysts are now forecasting revenues of ₹181.8b in 2026. This would be an okay 8.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to swell 10% to ₹44.39. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹185.9b and earnings per share (EPS) of ₹43.49 in 2026. If anything, the analysts look to have become slightly more optimistic overall; while they decreased their revenue forecasts, EPS predictions increased and ultimately earnings are more important.

There's been no real change to the average price target of ₹539, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Chambal Fertilisers and Chemicals at ₹585 per share, while the most bearish prices it at ₹503. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Chambal Fertilisers and Chemicals' revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 13% annually. Factoring in the forecast slowdown in growth, it seems obvious that Chambal Fertilisers and Chemicals is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Chambal Fertilisers and Chemicals' earnings potential next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Even so, earnings per share are more important to the intrinsic value of the business. 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.

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 Chambal Fertilisers and Chemicals going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Chambal Fertilisers and Chemicals you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.