ACME Solar Holdings Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Last week, you might have seen that ACME Solar Holdings Limited (NSE:ACMESOLAR) released its second-quarter result to the market. The early response was not positive, with shares down 6.8% to ₹269 in the past week. Revenues were ₹4.7b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹1.88 were also better than expected, beating analyst predictions by 11%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from ACME Solar Holdings' seven analysts is for revenues of ₹20.9b in 2026. This would reflect a modest 6.9% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dip 9.9% to ₹7.17 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹22.1b and earnings per share (EPS) of ₹6.92 in 2026. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

Check out our latest analysis for ACME Solar Holdings

There's been no real change to the average price target of ₹354, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. 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 ACME Solar Holdings analyst has a price target of ₹380 per share, while the most pessimistic values it at ₹330. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting ACME Solar Holdings is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ACME Solar Holdings' past performance and to peers in the same industry. It's pretty clear that there is an expectation that ACME Solar Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 67% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 17% annually. Factoring in the forecast slowdown in growth, it looks like ACME Solar Holdings is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ACME Solar Holdings' earnings potential next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Even so, earnings per share are more important to the intrinsic value of the business. 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 forecasts for ACME Solar Holdings going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for ACME Solar Holdings (2 are a bit unpleasant) 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.