Epigral Limited Just Missed Earnings - But Analysts Have Updated Their Models

Epigral Limited (NSE:EPIGRAL) shareholders are probably feeling a little disappointed, since its shares fell 9.0% to ₹1,531 in the week after its latest second-quarter results. It was not a great result overall. Although revenues beat expectations, hitting ₹5.9b, statutory earnings missed analyst forecasts by 16%, coming in at just ₹11.87 per share. Following the result, the analyst has 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Epigral after the latest results.

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Taking into account the latest results, the current consensus from Epigral's solitary analyst is for revenues of ₹25.5b in 2026. This would reflect an okay 3.4% increase on its revenue over the past 12 months. Statutory per share are forecast to be ₹93.52, approximately in line with the last 12 months. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹28.6b and earnings per share (EPS) of ₹122 in 2026. Indeed, we can see that the analyst is a lot more bearish about Epigral's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Epigral

What's most unexpected is that the consensus price target rose 6.1% to ₹2,600, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analyst, with revenue forecast to display 7.0% growth on an annualised basis. That is in line with its 7.7% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So it's pretty clear that Epigral is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Epigral. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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 2028, which can be seen for free on our platform here.

It might also be worth considering whether Epigral's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.