Here's What Analysts Are Forecasting For Gujarat Gas Limited (NSE:GUJGASLTD) After Its Second-Quarter Results

It's been a good week for Gujarat Gas Limited (NSE:GUJGASLTD) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.3% to ₹410. It looks like the results were a bit of a negative overall. While revenues of ₹38b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.2% to hit ₹4.06 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following last week's earnings report, Gujarat Gas' 13 analysts are forecasting 2026 revenues to be ₹160.1b, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 5.6% to ₹17.13. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹168.1b and earnings per share (EPS) of ₹18.06 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

View our latest analysis for Gujarat Gas

Despite the cuts to forecast earnings, there was no real change to the ₹459 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Gujarat Gas at ₹615 per share, while the most bearish prices it at ₹345. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 0.1% annualised decline to the end of 2026. That is a notable change from historical growth of 7.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 2.4% annually for the foreseeable future. So it's pretty clear that Gujarat Gas' revenues are expected to shrink slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates that is expected to perform better than the wider industry. 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.

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 Gujarat Gas going out to 2028, and you can see them free on our platform here..

We also provide an overview of the Gujarat Gas Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.