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

GHCL Limited (NSE:GHCL) missed earnings with its latest second-quarter results, disappointing overly-optimistic forecasters. Results showed a clear earnings miss, with ₹7.2b revenue coming in 6.2% lower than what the analystsexpected. Statutory earnings per share (EPS) of ₹11.15 missed the mark badly, arriving some 23% below what was expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for GHCL from three analysts is for revenues of ₹32.0b in 2026. If met, it would imply a credible 3.8% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 11% to ₹61.60. In the lead-up to this report, the analysts had been modelling revenues of ₹33.9b and earnings per share (EPS) of ₹66.20 in 2026. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Check out our latest analysis for GHCL

It'll come as no surprise then, to learn that the analysts have cut their price target 5.4% to ₹776. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic GHCL analyst has a price target of ₹900 per share, while the most pessimistic values it at ₹651. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await GHCL shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that GHCL's rate of growth is expected to accelerate meaningfully, with the forecast 7.8% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 0.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 13% annually. So it's clear that despite the acceleration in growth, GHCL is expected to grow meaningfully slower than the industry average.

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. 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of GHCL's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for GHCL 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 GHCL 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.