PI Industries Limited (NSE:PIIND) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

As you might know, PI Industries Limited (NSE:PIIND) recently reported its annual numbers. Results were roughly in line with estimates, with revenues of ₹80b and statutory earnings per share of ₹109. Following the result, the analysts have 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

We've discovered 1 warning sign about PI Industries. View them for free.

Taking into account the latest results, the current consensus from PI Industries' 24 analysts is for revenues of ₹85.6b in 2026. This would reflect a credible 7.3% increase on its revenue over the past 12 months. Statutory per share are forecast to be ₹111, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of ₹90.4b and earnings per share (EPS) of ₹119 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

View our latest analysis for PI Industries

The analysts made no major changes to their price target of ₹4,011, suggesting the downgrades are not expected to have a long-term impact on PI Industries' valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic PI Industries analyst has a price target of ₹6,297 per share, while the most pessimistic values it at ₹2,799. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 pretty clear that there is an expectation that PI Industries' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.3% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. Factoring in the forecast slowdown in growth, it seems obvious that PI Industries is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for PI Industries. 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. The consensus price target held steady at ₹4,011, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for PI Industries going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for PI Industries that you should be aware 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.