Indigo Paints Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

There's been a notable change in appetite for Indigo Paints Limited (NSE:INDIGOPNTS) shares in the week since its third-quarter report, with the stock down 10% to ₹1,136. Revenues ₹3.4b disappointed slightly, at7.5% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of ₹7.54 coming in 20% above what was anticipated. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Indigo Paints after the latest results.

See our latest analysis for Indigo Paints

After the latest results, the eight analysts covering Indigo Paints are now predicting revenues of ₹15.9b in 2026. If met, this would reflect a solid 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 19% to ₹34.58. Before this earnings report, the analysts had been forecasting revenues of ₹16.9b and earnings per share (EPS) of ₹36.98 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The consensus price target fell 8.5% to ₹1,475, with the weaker earnings outlook clearly leading valuation estimates. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Indigo Paints analyst has a price target of ₹1,905 per share, while the most pessimistic values it at ₹1,200. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 18% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although Indigo Paints is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Indigo Paints. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Indigo Paints' 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 Indigo Paints going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Indigo Paints Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.