Revenue Beat: Godawari Power & Ispat Limited Beat Analyst Estimates By 17%

Last week, you might have seen that Godawari Power & Ispat Limited (NSE:GPIL) released its quarterly result to the market. The early response was not positive, with shares down 3.7% to ₹265 in the past week. Godawari Power & Ispat beat revenue forecasts by a solid 17% to hit ₹13b. Statutory earnings per share came in at ₹13.14, in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 estimate 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 Godawari Power & Ispat from one analyst is for revenues of ₹57.3b in 2026. If met, it would imply an okay 4.5% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 23% to ₹14.10. In the lead-up to this report, the analyst had been modelling revenues of ₹59.2b and earnings per share (EPS) of ₹14.60 in 2026. The analyst are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

View our latest analysis for Godawari Power & Ispat

What's most unexpected is that the consensus price target rose 17% to ₹275, 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 analyst is definitely expecting Godawari Power & Ispat's growth to accelerate, with the forecast 9.1% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Godawari Power & Ispat is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Godawari Power & Ispat. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Godawari Power & Ispat that you need to be mindful 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.