Analysts Have Made A Financial Statement On Indus Towers Limited's (NSE:INDUSTOWER) Yearly Report

Last week, you might have seen that Indus Towers Limited (NSE:INDUSTOWER) released its full-year result to the market. The early response was not positive, with shares down 4.5% to ₹379 in the past week. The result was positive overall - although revenues of ₹301b were in line with what the analysts predicted, Indus Towers surprised by delivering a statutory profit of ₹37.31 per share, modestly greater than expected. 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.

We've discovered 1 warning sign about Indus Towers. View them for free.

Taking into account the latest results, the consensus forecast from Indus Towers' 22 analysts is for revenues of ₹329.7b in 2026. This reflects a meaningful 9.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to nosedive 26% to ₹27.13 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹327.5b and earnings per share (EPS) of ₹26.12 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for Indus Towers

The consensus price target was unchanged at ₹424, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. 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. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Indus Towers' past performance and to peers in the same industry. We would highlight that Indus Towers' revenue growth is expected to slow, with the forecast 9.4% annualised growth rate until the end of 2026 being well below the historical 20% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.9% per year. 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Indus Towers' earnings potential next year. 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 ₹424, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Indus Towers going out to 2028, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Indus Towers .

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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.