Revenue Miss: Dhanuka Agritech Limited Fell 22% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Dhanuka Agritech Limited (NSE:DHANUKA) shareholders are probably feeling a little disappointed, since its shares fell 7.9% to ₹1,303 in the week after its latest second-quarter results. Dhanuka Agritech reported a serious miss, with revenue of ₹6.0b falling a huge 22% short of analyst estimates. The bright side is that statutory earnings per share of ₹65.55 were in line with forecasts. 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.

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Taking into account the latest results, the most recent consensus for Dhanuka Agritech from seven analysts is for revenues of ₹20.9b in 2026. If met, it would imply a modest 4.0% increase on its revenue over the past 12 months. Statutory per share are forecast to be ₹62.77, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of ₹23.1b and earnings per share (EPS) of ₹69.35 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Check out our latest analysis for Dhanuka Agritech

The analysts made no major changes to their price target of ₹1,780, suggesting the downgrades are not expected to have a long-term impact on Dhanuka Agritech's valuation. 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. Currently, the most bullish analyst values Dhanuka Agritech at ₹2,001 per share, while the most bearish prices it at ₹1,487. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 8.1% growth on an annualised basis. That is in line with its 9.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 13% annually. So although Dhanuka Agritech is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Dhanuka Agritech. 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. The consensus price target held steady at ₹1,780, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Dhanuka Agritech analysts - going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Dhanuka Agritech's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.