Earnings Update: Here's Why Analysts Just Lifted Their Chambal Fertilisers and Chemicals Limited (NSE:CHAMBLFERT) Price Target To ₹634

Chambal Fertilisers and Chemicals Limited (NSE:CHAMBLFERT) just released its latest yearly report and things are not looking great. Results look to have been somewhat negative - revenue fell 2.8% short of analyst estimates at ₹169b, and statutory earnings of ₹41.17 per share missed forecasts by 4.1%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Chambal Fertilisers and Chemicals' two analysts is for revenues of ₹179.0b in 2026. This reflects a credible 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.7% to ₹42.70. In the lead-up to this report, the analysts had been modelling revenues of ₹182.1b and earnings per share (EPS) of ₹43.49 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Chambal Fertilisers and Chemicals

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 18% to ₹634. It looks as though they previously had some doubts over whether the business would live up to their expectations.

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 6.2% annualised growth rate until the end of 2026 being well below the historical 8.9% 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 12% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Chambal Fertilisers and Chemicals.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Chambal Fertilisers and Chemicals' revenue is expected to perform worse 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. We have analyst estimates for Chambal Fertilisers and Chemicals going out as far as 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Chambal Fertilisers and Chemicals .

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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.