Godawari Power & Ispat Limited Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Shareholders might have noticed that Godawari Power & Ispat Limited (NSE:GPIL) filed its quarterly result this time last week. The early response was not positive, with shares down 9.3% to ₹170 in the past week. Godawari Power & Ispat reported a serious miss, with revenue of ₹13b falling a huge 23% short of analyst estimates. The bright side is that statutory earnings per share of ₹14.90 were in line with forecasts. 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Godawari Power & Ispat

Taking into account the latest results, the current consensus from Godawari Power & Ispat's solitary analyst is for revenues of ₹57.0b in 2026. This would reflect a modest 4.8% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 42% to ₹17.80. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹69.3b and earnings per share (EPS) of ₹26.90 in 2026. Indeed, we can see that the analyst is a lot more bearish about Godawari Power & Ispat's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

The consensus price target fell 13% to ₹235, with the weaker earnings outlook clearly leading valuation estimates.

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. We would highlight that Godawari Power & Ispat's revenue growth is expected to slow, with the forecast 3.8% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 12% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Godawari Power & Ispat.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Godawari Power & Ispat. 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. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Even so, be aware that Godawari Power & Ispat is showing 1 warning sign in our investment analysis , you should know about...

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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.