Gujarat Gas Limited Just Missed EPS By 32%: Here's What Analysts Think Will Happen Next

Gujarat Gas Limited (NSE:GUJGASLTD) shareholders are probably feeling a little disappointed, since its shares fell 5.2% to ₹461 in the week after its latest third-quarter results. Statutory earnings per share fell badly short of expectations, coming in at ₹3.21, some 32% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at ₹42b. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Gujarat Gas

Taking into account the latest results, the current consensus from Gujarat Gas' 15 analysts is for revenues of ₹190.3b in 2026. This would reflect a meaningful 15% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 18% to ₹21.87. In the lead-up to this report, the analysts had been modelling revenues of ₹189.8b and earnings per share (EPS) of ₹22.14 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹532. 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 Gujarat Gas, with the most bullish analyst valuing it at ₹750 and the most bearish at ₹330 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the 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 can infer from the latest estimates that forecasts expect a continuation of Gujarat Gas'historical trends, as the 12% annualised revenue growth to the end of 2026 is roughly in line with the 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 2.8% annually. So not only is Gujarat Gas expected to maintain its revenue growth despite the wider downturn, it's also forecast to grow faster than the industry as a whole.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Gujarat Gas' revenue is expected to perform better than the wider industry. The consensus price target held steady at ₹532, 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 Gujarat Gas. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Gujarat Gas analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Gujarat Gas' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.