Deepak Nitrite Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Deepak Nitrite Limited (NSE:DEEPAKNTR) missed earnings with its latest first-quarter results, disappointing overly-optimistic forecasters. It looks like quite a negative result overall, with both revenues and earnings falling well short of analyst predictions. Revenues of ₹19b missed by 11%, and statutory earnings per share of ₹8.23 fell short of forecasts by 31%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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, Deepak Nitrite's 18 analysts currently expect revenues in 2026 to be ₹80.1b, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 7.2% to ₹48.06. Before this earnings report, the analysts had been forecasting revenues of ₹89.1b and earnings per share (EPS) of ₹61.21 in 2026. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a pretty serious reduction to earnings per share numbers as well.

View our latest analysis for Deepak Nitrite

Despite the cuts to forecast earnings, there was no real change to the ₹2,085 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Deepak Nitrite analyst has a price target of ₹2,567 per share, while the most pessimistic values it at ₹1,660. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Deepak Nitrite's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.1% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Deepak Nitrite.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Deepak Nitrite. 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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Deepak Nitrite. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Deepak Nitrite analysts - going out to 2028, 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 Deepak Nitrite 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.