Revenue Beat: Saregama India Limited Exceeded Revenue Forecasts By 43% And Analysts Are Updating Their Estimates

Saregama India Limited (NSE:SAREGAMA) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Statutory earnings beat expectations, with revenues of ₹4.8b coming in a massive 43% ahead of forecasts, while earnings per share (eps) of ₹3.23 beat expectations by 7.7%. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Saregama India

After the latest results, the six analysts covering Saregama India are now predicting revenues of ₹12.2b in 2026. If met, this would reflect a satisfactory 2.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 29% to ₹13.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹12.2b and earnings per share (EPS) of ₹13.60 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹596. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Saregama India analyst has a price target of ₹640 per share, while the most pessimistic values it at ₹512. This is a very narrow spread of estimates, implying either that Saregama India is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Saregama India's revenue growth is expected to slow, with the forecast 1.8% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that Saregama India is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Saregama India's revenue is expected to perform worse than the wider industry. The consensus price target held steady at ₹596, 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 estimates - from multiple Saregama India analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Saregama India has 2 warning signs we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.