Clean Science and Technology Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a good week for Clean Science and Technology Limited (NSE:CLEAN) shareholders, because the company has just released its latest third-quarter results, and the shares gained 3.6% to ₹1,436. Revenues were ₹2.4b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹6.18 were also better than expected, beating analyst predictions by 12%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Clean Science and Technology

Taking into account the latest results, the most recent consensus for Clean Science and Technology from ten analysts is for revenues of ₹12.8b in 2026. If met, it would imply a substantial 37% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 36% to ₹33.24. Before this earnings report, the analysts had been forecasting revenues of ₹13.1b and earnings per share (EPS) of ₹34.94 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of ₹1,558, suggesting the downgrades are not expected to have a long-term impact on Clean Science and Technology's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Clean Science and Technology analyst has a price target of ₹1,770 per share, while the most pessimistic values it at ₹1,075. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 Clean Science and Technology's rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 14% 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. Factoring in the forecast acceleration in revenue, it's pretty clear that Clean Science and Technology is expected to grow much faster than its 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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at ₹1,558, 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 Clean Science and Technology. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Clean Science and Technology going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Clean Science and Technology 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.