Analysts Have Lowered Expectations For Indraprastha Gas Limited (NSE:IGL) After Its Latest Results

Investors in Indraprastha Gas Limited (NSE:IGL) had a good week, as its shares rose 3.8% to close at ₹193 following the release of its annual results. Indraprastha Gas missed revenue estimates by 4.5%, coming in at₹149b, although statutory earnings per share (EPS) of ₹12.27 beat expectations, coming in 2.5% ahead of analyst estimates. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've discovered 1 warning sign about Indraprastha Gas. View them for free.

After the latest results, the 25 analysts covering Indraprastha Gas are now predicting revenues of ₹161.4b in 2026. If met, this would reflect a decent 8.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 6.7% to ₹11.45 in the same period. In the lead-up to this report, the analysts had been modelling revenues of ₹174.4b and earnings per share (EPS) of ₹13.65 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.

View our latest analysis for Indraprastha Gas

The analysts made no major changes to their price target of ₹226, suggesting the downgrades are not expected to have a long-term impact on Indraprastha Gas' valuation. 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. There are some variant perceptions on Indraprastha Gas, with the most bullish analyst valuing it at ₹648 and the most bearish at ₹144 per share. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Indraprastha Gas' past performance and to peers in the same industry. We would highlight that Indraprastha Gas' revenue growth is expected to slow, with the forecast 8.1% annualised growth rate until the end of 2026 being well below the historical 24% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 3.1% per year. So it's clear that despite the slowdown in growth, Indraprastha Gas is still expected to grow meaningfully faster 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. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider industry. The consensus price target held steady at ₹226, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Indraprastha Gas going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Indraprastha Gas has 1 warning sign we think 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.