Earnings Miss: Nilkamal Limited Missed EPS By 35% And Analysts Are Revising Their Forecasts

Last week, you might have seen that Nilkamal Limited (NSE:NILKAMAL) released its quarterly result to the market. The early response was not positive, with shares down 9.7% to ₹1,623 in the past week. Results were mixed, with revenues of ₹8.8b exceeding expectations, even as statutory earnings per share (EPS) fell badly short. Earnings were ₹10.21 per share, -35% short of analyst expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Nilkamal's twin analysts is for revenues of ₹37.2b in 2026. This would reflect a credible 7.6% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be ₹69.95, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹35.6b and earnings per share (EPS) of ₹84.90 in 2026. So it's pretty clear the analysts have mixed opinions on Nilkamal after the latest results; even though they upped their revenue numbers, it came at the cost of a substantial drop in per-share earnings expectations.

See our latest analysis for Nilkamal

The consensus price target fell 11% to ₹2,063, suggesting that the analysts are primarily focused on earnings as the driver of value for this business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 10% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 12% per year. So although Nilkamal is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

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. They also upgraded their revenue forecasts, although the latest estimates suggest that Nilkamal will grow in line with the overall industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Nilkamal. 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.

Before you take the next step you should know about the 1 warning sign for Nilkamal that we have uncovered.

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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.