Revenue Beat: Ami Organics Limited Beat Analyst Estimates By 11%

It's been a pretty great week for Ami Organics Limited (NSE:AMIORG) shareholders, with its shares surging 17% to ₹2,359 in the week since its latest quarterly results. It was a mildly positive result, with revenues exceeding expectations at ₹2.7b, while statutory earnings per share (EPS) of ₹11.66 were in line with analyst forecasts. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Ami Organics

Taking into account the latest results, the most recent consensus for Ami Organics from five analysts is for revenues of ₹12.8b in 2026. If met, it would imply a major 38% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 77% to ₹52.38. In the lead-up to this report, the analysts had been modelling revenues of ₹12.4b and earnings per share (EPS) of ₹48.58 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 12% to ₹2,489per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Ami Organics at ₹3,000 per share, while the most bearish prices it at ₹1,892. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ami Organics' past performance and to peers in the same industry. It's clear from the latest estimates that Ami Organics' rate of growth is expected to accelerate meaningfully, with the forecast 30% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 22% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ami Organics is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ami Organics' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Ami Organics going out to 2027, and you can see them free on our platform here.

Even so, be aware that Ami Organics is showing 1 warning sign in our investment analysis , you should know about...

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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.