Analysts Are Updating Their Indus Towers Limited (NSE:INDUSTOWER) Estimates After Its First-Quarter Results

There's been a notable change in appetite for Indus Towers Limited (NSE:INDUSTOWER) shares in the week since its quarterly report, with the stock down 12% to ₹345. Indus Towers reported in line with analyst predictions, delivering revenues of ₹81b and statutory earnings per share of ₹6.59, suggesting the business is executing well and in line with its plan. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Indus Towers from 22 analysts is for revenues of ₹329.0b in 2026. If met, it would imply a credible 6.8% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dive 25% to ₹27.14 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹329.8b and earnings per share (EPS) of ₹27.20 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Indus Towers

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹416. 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. There are some variant perceptions on Indus Towers, with the most bullish analyst valuing it at ₹595 and the most bearish at ₹308 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Indus Towers' revenue growth is expected to slow, with the forecast 9.2% annualised growth rate until the end of 2026 being well below the historical 17% 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 3.8% annually. So it's pretty clear that, while Indus Towers' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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. The consensus price target held steady at ₹416, with the latest estimates not enough to have an impact on their price targets.

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

You still need to take note of risks, for example - Indus Towers has 1 warning sign we think 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.