Redington Limited Beat Revenue Forecasts By 9.1%: Here's What Analysts Are Forecasting Next

It's been a sad week for Redington Limited (NSE:REDINGTON), who've watched their investment drop 15% to ₹249 in the week since the company reported its first-quarter result. It was a workmanlike result, with revenues of ₹260b coming in 9.1% ahead of expectations, and statutory earnings per share of ₹20.53, in line with analyst appraisals. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Following the latest results, Redington's four analysts are now forecasting revenues of ₹1.15t in 2026. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 8.5% to ₹19.13 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹1.13t and earnings per share (EPS) of ₹20.80 in 2026. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a meaningful to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

Check out our latest analysis for Redington

The consensus price target was unchanged at ₹263, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. The most optimistic Redington analyst has a price target of ₹310 per share, while the most pessimistic values it at ₹170. 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 Redington shareholders.

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 can infer from the latest estimates that forecasts expect a continuation of Redington'shistorical trends, as the 15% annualised revenue growth to the end of 2026 is roughly in line with the 14% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 22% annually. So although Redington is expected to maintain its revenue growth rate, it's forecast to grow slower 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 upgraded their revenue estimates for next year, even though it is expected to grow slower 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Redington analysts - going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Redington .

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.