Ami Organics Limited Recorded A 7.8% Miss On Revenue: Analysts Are Revisiting Their Models

As you might know, Ami Organics Limited (NSE:AMIORG) recently reported its quarterly numbers. Revenues came in 7.8% below expectations, at ₹1.7b. Statutory earnings per share were relatively better off, with a per-share profit of ₹22.86 being roughly in line with analyst estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ami Organics after the latest results.

Check out our latest analysis for Ami Organics

Taking into account the latest results, the most recent consensus for Ami Organics from four analysts is for revenues of ₹9.04b in 2025. If met, it would imply a substantial 33% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 171% to ₹30.68. Before this earnings report, the analysts had been forecasting revenues of ₹9.24b and earnings per share (EPS) of ₹32.56 in 2025. 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 7.8% to ₹1,306, 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 Ami Organics analyst has a price target of ₹1,560 per share, while the most pessimistic values it at ₹1,134. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Ami Organics shareholders.

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 2025 brings more of the same, according to the analysts, with revenue forecast to display 26% growth on an annualised basis. That is in line with its 22% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So although Ami Organics is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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 downgraded Ami Organics' revenue estimates, but industry data suggests that it is expected to grow faster than the wider 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 Ami Organics. Long-term earnings power is much more important than next year's profits. We have forecasts for Ami Organics going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Ami Organics 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.