Revenue Miss: Godawari Power & Ispat Limited Fell 11% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

The quarterly results for Godawari Power & Ispat Limited (NSE:GPIL) were released last week, making it a good time to revisit its performance. Revenues were ₹13b, 11% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of ₹13.14 being in line with what the analyst anticipated. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

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After the latest results, the lone analyst covering Godawari Power & Ispat are now predicting revenues of ₹59.2b in 2026. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 27% to ₹14.60. Yet prior to the latest earnings, the analyst had been anticipated revenues of ₹59.4b and earnings per share (EPS) of ₹15.00 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analyst did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Godawari Power & Ispat

The average price target fell 11% to ₹210, with reduced earnings forecasts clearly tied to a lower valuation estimate.

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. It's clear from the latest estimates that Godawari Power & Ispat's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 7.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Godawari Power & Ispat to grow faster than the wider industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. 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.

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.

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.