Indus Towers Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Last week saw the newest full-year earnings release from Indus Towers Limited (NSE:INDUSTOWER), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of ₹286b were in line with what the analysts predicted, Indus Towers surprised by delivering a statutory profit of ₹22.40 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Indus Towers

After the latest results, the 19 analysts covering Indus Towers are now predicting revenues of ₹310.8b in 2025. If met, this would reflect a solid 8.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 6.0% to ₹23.76. In the lead-up to this report, the analysts had been modelling revenues of ₹308.4b and earnings per share (EPS) of ₹22.36 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 11% to ₹292, suggesting that higher earnings estimates flow through to the stock's valuation as well. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Indus Towers, with the most bullish analyst valuing it at ₹450 and the most bearish at ₹160 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Indus Towers' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.7% growth on an annualised basis. This is compared to a historical growth rate of 32% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.0% annually. 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 forecasts 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.