Indus Towers Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Indus Towers Limited (NSE:INDUSTOWER) shareholders are probably feeling a little disappointed, since its shares fell 9.0% to ₹350 in the week after its latest quarterly results. Revenues were ₹75b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at ₹8.30, an impressive 38% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Indus Towers

Taking into account the latest results, the consensus forecast from Indus Towers' 21 analysts is for revenues of ₹306.1b in 2025. This reflects a satisfactory 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to reduce 2.7% to ₹27.82 in the same period. Before this earnings report, the analysts had been forecasting revenues of ₹309.4b and earnings per share (EPS) of ₹26.42 in 2025. So the consensus seems to have become somewhat more optimistic on Indus Towers' earnings potential following these results.

The consensus price target was unchanged at ₹408, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Indus Towers, with the most bullish analyst valuing it at ₹575 and the most bearish at ₹280 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.

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 would highlight that Indus Towers' revenue growth is expected to slow, with the forecast 9.6% annualised growth rate until the end of 2025 being well below the historical 27% 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. Even after the forecast slowdown in growth, it seems obvious that Indus Towers 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 Indus Towers following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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. At Simply Wall St, we have a full range of analyst estimates for Indus Towers going out to 2027, and you can see them free on our platform here..

It might also be worth considering whether Indus Towers' debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.