Analysts Are Updating Their Power Grid Corporation of India Limited (NSE:POWERGRID) Estimates After Its Third-Quarter Results

Shareholders might have noticed that Power Grid Corporation of India Limited (NSE:POWERGRID) filed its quarterly result this time last week. The early response was not positive, with shares down 7.8% to ₹278 in the past week. It looks like the results were a bit of a negative overall. While revenues of ₹117b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.4% to hit ₹4.11 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Power Grid Corporation of India

Taking into account the latest results, the most recent consensus for Power Grid Corporation of India from twelve analysts is for revenues of ₹481.9b in 2026. If met, it would imply a credible 5.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 7.5% to ₹17.97. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹495.8b and earnings per share (EPS) of ₹18.52 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.

Despite the cuts to forecast earnings, there was no real change to the ₹335 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. The most optimistic Power Grid Corporation of India analyst has a price target of ₹400 per share, while the most pessimistic values it at ₹234. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Power Grid Corporation of India shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 4.7% growth on an annualised basis. That is in line with its 4.7% 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 revenues grow 11% per year. So although Power Grid Corporation of India is expected to maintain its revenue growth rate, it's forecast to grow 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Power Grid Corporation of India going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Power Grid Corporation of India .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.