Earnings Beat: Chambal Fertilisers and Chemicals Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Chambal Fertilisers and Chemicals Limited (NSE:CHAMBLFERT) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The results were mixed; although revenues of ₹43b fell 14% short of what the analysts had predicted, per-share (statutory) earnings of ₹13.39 beat expectations by 25%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Chambal Fertilisers and Chemicals

Following the latest results, Chambal Fertilisers and Chemicals' twin analysts are now forecasting revenues of ₹175.4b in 2025. This would be a satisfactory 7.8% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be ₹37.70, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹193.3b and earnings per share (EPS) of ₹40.95 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The average price target climbed 24% to ₹532despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Chambal Fertilisers and Chemicals' rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 13% p.a. 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 Chambal Fertilisers and Chemicals to grow 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. They also downgraded Chambal Fertilisers and Chemicals' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Chambal Fertilisers and Chemicals that you should be aware of.

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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.