Results: Ramco Systems Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a good week for Ramco Systems Limited (NSE:RAMCOSYS) shareholders, because the company has just released its latest first-quarter results, and the shares gained 3.2% to ₹402. It was overall a positive result, with revenues beating expectations by 2.6% to hit ₹1.6b. Ramco Systems also reported a statutory profit of ₹0.25, which was a nice improvement from the loss that the analyst were predicting. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Ramco Systems from sole analyst is for revenues of ₹6.49b in 2026. If met, it would imply a reasonable 5.4% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 59% to ₹1.50. Before this earnings announcement, the analyst had been modelling revenues of ₹6.49b and losses of ₹3.10 per share in 2026. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analyst upgrading their numbers and making a very promising decrease in losses per share in particular.

View our latest analysis for Ramco Systems

There's been no major changes to the consensus price target of ₹500, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Ramco Systems is forecast to grow faster in the future than it has in the past, with revenues expected to display 7.2% annualised growth until the end of 2026. If achieved, this would be a much better result than the 1.5% annual decline 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 revenue grow 13% per year. Although Ramco Systems' revenues are expected to improve, it seems that the analyst is still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Ramco Systems' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Ramco Systems going out as far as 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Ramco Systems that we have uncovered.

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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.