Earnings Update: Here's Why Analysts Just Lifted Their Premier Energies Limited (NSE:PREMIERENE) Price Target To ₹1,003

It's been a good week for Premier Energies Limited (NSE:PREMIERENE) shareholders, because the company has just released its latest annual results, and the shares gained 4.8% to ₹1,068. The result was positive overall - although revenues of ₹67b were in line with what the analysts predicted, Premier Energies surprised by delivering a statutory profit of ₹21.35 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 most recent consensus for Premier Energies from four analysts is for revenues of ₹82.9b in 2026. If met, it would imply a sizeable 25% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 32% to ₹27.45. In the lead-up to this report, the analysts had been modelling revenues of ₹84.3b and earnings per share (EPS) of ₹25.82 in 2026. So the consensus seems to have become somewhat more optimistic on Premier Energies' earnings potential following these results.

Check out our latest analysis for Premier Energies

The consensus price target rose 8.4% to ₹1,003, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. There are some variant perceptions on Premier Energies, with the most bullish analyst valuing it at ₹1,320 and the most bearish at ₹780 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Premier Energies' revenue growth is expected to slow, with the forecast 25% annualised growth rate until the end of 2026 being well below the historical 36% 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 16% annually. Even after the forecast slowdown in growth, it seems obvious that Premier Energies is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Premier Energies following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Premier Energies. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Premier Energies analysts - going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Premier Energies' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.